Investors in the cryptocurrency market are constantly mocked for the losses they incur due to the industry’s extreme volatility and the prevalence of frauds and scams that are merely an annoyance to governments around the world.
Two separate cryptocurrency firms in the UK have been shut down recently for their roles in elaborate scams and Ponzi schemes designed to defraud investors.
Companies used the referral program, which was set up by current users, to attract as many investors as possible. Thankfully, the law enforcement was able to bust these businesses red-handed.
There has been a rise in crypto-related scams.
It wasn’t that the businesses were planning to disappear with the investors’ money or anything like that; it was just that, at some point, they could, thanks to the Ponzi scheme structure.
Investigators dug deep and found that the company had been sharing its accounts with the crypto scam agents, who had used them in a scam involving 1.3 million British pounds.
There has been an outing of the companies’ identities; they are Micasa and Remultex, the latter of which is the parent company of the former.
The government has taken control of the accounts and the regulators have issued a formal notice requiring both companies to cease operations immediately and to take their fight with the government to court.
Due to this, businesses are unable to continue operations as usual and are instead forced to close their doors.
Constant attempts at duping unsuspecting people are a major roadblock to the widespread adoption and use of decentralized, secure crypto transactions. It just sends the message that the crypto market will never be stable and that investors shouldn’t waste their time or money trying to play its volatile game.