3 ms·

Three Men Arrested in $722M Cryptocurrency Fraud Scheme

32 points by mzs 7y ago

duelingjello 7y ago
From June 2019: [Investment Warning] Bitclub Network Review and Analysis https://99bitcoins.com/anatomy-bitcoin-scam-bitclub-network-analyzed/ https://99bitcoins.com/anatomy-bitcoin-scam-bitclub-network-... One nitpick is privacy and private registration aren't necessarily red-flags on their own. For personal domains and private people, it's a good idea. I prefer https://www.gandi.net https://www.gandi.net as I've used them for years, they support anonymized registration, DNSSEC, 2FA (TOTP/U2F), Cryptopayments and GDPR.
goatinaboat 7y ago
Shouldn’t the headline just be “cryptocurrency scheme”? The “fraud” is tautological.
janandonly 7y ago
”Not your keys, not your coins” Maybe we should add ”not your mining rig, not your profit” ?
nighthawk648 7y ago
> Goettsche, Weeks, and others conspired to solicit investments in BitClub Network by providing false and misleading figures that BitClub investors were told were “bitcoin mining earnings,” purportedly generated by BitClub Network’s bitcoin mining pool. Goettsche discussed with his conspirators that their target audience would be “dumb” investors, referred to them as “sheep,” and said he was “building this whole model on the backs of idiots.” Goettsche directed others to manipulate the figures displayed as “mining earnings” during the course of the conspiracy. Come on, how dumb do you have to be to leave a paper trail in emails of your blatant attempt to defraud investors. I mean it’s a pretty impressive scheme that in light of all the Ponzi schemes and MLM these guys were able to convince others to invest, especially in a technology that is totally anonymous with no real way to see what is actually going on behind the scenes. I read it thinking the created a real crypto and dumped all the currency into one account and transferred it out. I am surprised the scheme was way less sophisticated in terms of implementation.

32 points by mzs 7y ago

From June 2019: [Investment Warning] Bitclub Network Review and Analysis https://99bitcoins.com/anatomy-bitcoin-scam-bitclub-network-analyzed/ https://99bitcoins.com/anatomy-bitcoin-scam-bitclub-network-... One nitpick is privacy and private registration aren't necessarily red-flags on their own. For personal domains and private people, it's a good idea. I prefer https://www.gandi.net https://www.gandi.net as I've used them for years, they support anonymized registration, DNSSEC, 2FA (TOTP/U2F), Cryptopayments and GDPR.

goatinaboat 7y ago

Shouldn’t the headline just be “cryptocurrency scheme”? The “fraud” is tautological.

janandonly 7y ago

”Not your keys, not your coins” Maybe we should add ”not your mining rig, not your profit” ?

nighthawk648 7y ago

> Goettsche, Weeks, and others conspired to solicit investments in BitClub Network by providing false and misleading figures that BitClub investors were told were “bitcoin mining earnings,” purportedly generated by BitClub Network’s bitcoin mining pool. Goettsche discussed with his conspirators that their target audience would be “dumb” investors, referred to them as “sheep,” and said he was “building this whole model on the backs of idiots.” Goettsche directed others to manipulate the figures displayed as “mining earnings” during the course of the conspiracy. Come on, how dumb do you have to be to leave a paper trail in emails of your blatant attempt to defraud investors. I mean it’s a pretty impressive scheme that in light of all the Ponzi schemes and MLM these guys were able to convince others to invest, especially in a technology that is totally anonymous with no real way to see what is actually going on behind the scenes. I read it thinking the created a real crypto and dumped all the currency into one account and transferred it out. I am surprised the scheme was way less sophisticated in terms of implementation.