Crypto Fraud

Twelve more people have been charged in a cybercrime case involving the theft of over $263 million in cryptocurrency. The gang used hacking and social tricks to steal funds, which they spent on luxury cars, nightclubs, and expensive goods.

Jonathan Mills, founder of the Hashling NFT project, is being sued by investors who accuse him of misusing millions from NFT sales and a Bitcoin mining venture. They claim he kept control through a faulty shareholder deal and never delivered the promised returns.

The bosses of crypto lender Cred have admitted in court to lying to customers about the company's financial problems. This deception led to the firm collapsing and investors losing a large amount of their digital money.

Pump.fun has launched a revenue-sharing scheme that pays token creators 50% of trading fees through its PumpSwap exchange. The move rewards ongoing trading activity but has raised concerns it could encourage more rug pulls.

Meta announced on 7 May that it removed over 23,000 scam accounts and Pages targeting users in Brazil and India. The scammers used fake celebrity videos and impersonation to promote fraudulent investment and gambling apps.

Pyramid schemes in Russia are increasingly targeting crypto investors with fraudulent digital asset and real estate opportunities. The central bank reports that over half of Ponzi schemes now accept crypto contributions, exploiting the allure of high returns and quick profits.

The US Treasury has sanctioned the Karen National Army (KNA) and its leaders for running crypto fraud and human trafficking networks linked to billions in losses. Authorities say KNA territory hosted "pig butchering" scams that forced trafficked individuals to defraud victims.

Scammers are sending fake letters to Ledger users, pretending to be from the company and asking for their wallet recovery phrases. The letters target people affected by a past data leak, and Ledger has warned users not to share their 24-word phrase under any circumstances.

Alex Mashinsky, former CEO of Celsius, is facing a possible 20-year prison sentence for leading a $7 billion crypto fraud. He misled users about the safety of their funds while secretly profiting from risky trades and token sales.

In 2024, Americans lost at least $9.3 billion to crypto scams, making up more than half of the $16.6 billion total reported losses from internet crimes. The FBI ramped up efforts to tackle fraud, preventing $286 million in losses through initiatives like Operation Level Up.