“The Cryptocurrency scam: 100 million euros disappeared, six people under investigation”. When poor journalism meets clickbait titles
This week I was reading the news related to the crypto world as usual and one caught my attention: “The cryptocurrency scam: 100 million euros disappeared, six people under investigation”. According to the article, six people in Italy have defrauded between four thousand and six thousand people. Posing as financial intermediaries, they would have received an estimated sum of around 100 million euros. As usual, the article features a coin with the symbol of Bitcoin.
About 6,000 people throughout Northern Italy would have lost savings of between 10,000 and 250,000 euros. The police are investigating and hypothesizing the crimes of aggravated fraud and the abusive exercise of financial intermediation activities. According to the allegations, the scammers promised a constant monthly return of 10% of the invested capital. They initially kept its promise by paying the accrued interest on time, and then disappeared into thin air at the end of July. Hence the suspicions that the scammers never actually invested the money in online trading platforms, but that they simply adopted a scam with the most classic of Ponzi schemes, paying the first subscribers the money of the latest arrivals as false interest, to then transfer the large remaining capital in Dubai banks. Two of the alleged scammers took a selfie in Dubai.
Most likely these scammers will be sentenced to very little penalties and will be able to enjoy the rest of their life in Dubai or some other exotic place with the money of the people they cheated. I could also have titled this article: “What happens when the morons give their money to the scoundrels.” I had already written an article about scoundrels and I invite you to reread it here.
Let me give you some golden advice to prevent you too from being scammed:
- never give your money (or crypto) to anyone: giving your funds into the hands of other people means giving them away;
- whoever promises significant passive income, and hides the high risks from you, is in fact lying to you. In doing so, you are not investing, you are gambling. If it looks too good to be true, it most likely is;
- when your best friend, cousin or old school friend who is a plumber calls you and wants to offer you a very interesting investment, tell him that you are not interested and hang up the phone;
- when you are approached by someone who asks you to give them your money, check that they are a properly registered financial intermediary (and even if they are, do not give them your money);
- learn how to invest your money and never delegate this skill to anyone;
- the keyword is control. Put the Cryptocurrencies you want to trade, invest or stake only on reliable platforms like Binance. When you want to sell or take profit, just press a button. You don’t have to beg someone to give you your money back or even go to the police.
If you follow my tips you will save a lot of pain, money and regrets.
And last thing: dear journalists, Bitcoin, Ethereum and Cryptocurrencies have never scammed anyone. According to the Chainalysis 2022 Crypto Crime Report, transactions involving illicit addresses represented just 0.15% of Cryptocurrency transaction volume in 2021. It’s the people who scam other people. Stop writing these scant articles and don’t dirty the name of our industry. 99% of the people operating in the Crypto world are crystalline and ethical. Cryptocurrencies also have their flaws, but they are infinitely small compared to yours.
A winner is a dreamer who never gives up.
Disclaimer: I am not aware of any third party rights on the images used. I undertake to cite the source if there are any and to adjust the position if requested.
Disclaimer: Trading cryptocurrencies carries a high level of risk and may not be suitable for all investors. Before deciding to trade cryptocurrency you should carefully consider your investment objectives and your level of experience. Do Your Own Research. All opinions expressed here are owned by the respective writer and should never be considered as financial advice in any form.
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