While authorities continue to arrest criminals within the crypto world, thefts show no signs of slowing down. Authorities simply do not have the resources to police the burgeoning industry. With the lure of easy profits, non-savvy investors are easy prey for thieves to exploit.
One of the most infamous scams in crypto to date is BitConnect. Rising to prominence during late 2017, BitConnect was an obvious scam from the start. It was a pyramid scheme that allowed its creators to steal vast sums of money from those that participated in the program.
Through promises of 1% daily interest rates, and more, the organizers made bold claims. It even garnered the attention of comedians, as John Oliver and Keegan Michael-Key released a satirical warning sketch, mocking the project. The tides have turned however on this project, as the BitConnect token (BCC) has been removed from basically every exchange, and seen its value drop from a peak of over $400 to $0.67.
It is now being reported that the head of the Indian branch of BitConnect has now been arrested. First reported in the Financial Express, Divyesh Darji was arrest as he attempted to travel from Dubai to Ahmedabad. Darji had been on a watch list for months, as authorities tried to track down those responsible for organizing the scam.
With authorities unable to promptly apprehend those that promoted the BitConnect scheme, some investors have taken justice into their own hands. There are reports of BitConnect investors actually kidnapping the promoters, and forcing the return of their lost funds.
More arrests were made in China, as multiple thieves accused of stealing almost $90 million worth of crypto were brought in for justice.
The thieves number three, and are said to have illegally gained remote access to various computers and networks. In doing so, they were able to discreetly transfer cryptocurrency to their own wallets. Although one of the three thieves was arrested two months ago, the remaining two had managed to avoid authorities until now.
Authorities were able to track down each of the perpetrators with the assistance of various internet service providers. This led to their arrests taking place throughout distant regions of China.
Chasing their Tails
Although authorities are trying to keep up with the increasing number of scams and crimes related to crypto, they are fighting a losing battle. There is simply too much money being thrown at the industry by those looking to strike it big. These instances are not limited to amateur investors, and those with lax security protocols, as described above. There are multiple instances of elaborate schemes targeting ‘savvy’ investors.
As long as the industry remains in a strong growth phase, and there are people to take advantage of, we will continue to hear of these unfortunate circumstances. Thankfully in these instances the criminals were apprehended. Whether any money is ever returned to those that were duped remains to be seen.