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PlusToken crypto wallet, which proposed storing almost all the world's leading cryptocurrencies and making a profit on their investments, can claim the status of the largest fraudulent project in the history of financial pyramids. Users cannot withdraw the equivalent of $ 3 billion from their online wallets.

PlusToken, an international decentralized crypto project of the multi-currency online wallet PlusToken, was launched in April 2018. The project was positioned by the creators as developing a team from South Korea using Samsung technology. The marketing campaign was launched in Asia (China, Japan, South Korea, Myanmar, Vietnam), a number of European countries (Germany and the UK), as well as in Russia.

In addition to the ability to store almost all the world's leading cryptocurrencies in the wallet - Bitcoin, Bitcoin Cash, Ethereum, XRP, EOS, IO, Litecoin, Doge and Dash, users were promised a fairly significant return on investment of their cryptocurrency assets - from 6% to 19% per month.

According to experts from Elementus (USA), a company that creates and promotes fintech solutions based on blockchain technology, over 800 thousand Ethereum cryptocurrency depositors have used PlusToken wallets for the entire existence of the project and stored about 10 million ETH on them.

According to the Special elaborations department of the Technopark of St. Petersburg, the PlusToken pyramid attracted about 200 thousand bitcoins, 789 thousand ETH and 26 million EOSIO. All these funds went to wallets controlled by the PlusToken team.

However, interested media write, these estimates are very preliminary, and the amount collected from investors may be much larger. So, experts say, only the Ethereum address of PlusToken stored more than 781,000 ETH, which, in terms of the exchange rate, amounts to more than $ 234 million.

The capitalization of PlusToken at the top of trading reached $ 17 billion. PlusToken was accused of fraud in March 2019, when Chinese police raided PlusToken's offices in Hunan (PRC). The head of PlusToken's Chinese unit, Chen Bo, as well as five other Chinese citizens related to the cryptocurrency wallet project, have disappeared and are on the wanted list.

Problems with the withdrawal of assets from PlusToken wallets began in late June 2019. The Chinese investors were the first to suffer, as evidenced by the entries in the PlusToken support service, which did not respond to calls, and, starting on June 29, the PlusCoin platform token exchange rate remained at the same level ($ 139,237) without hesitation.

On June 29, according to the Dailypost, six Chinese citizens suspected of participating in an Internet scam were arrested on the island of Vanuatu at the request of the Chinese authorities and deported back to China. It is possible, the publication reports that they are precisely the key figures in the PlusToken team.

To date, it is known that the organizers of PlusToken have already managed to cash out part of the bitcoins through crypto exchanges Huobi Global (Singapore) and Bittrex (USA). In particular, the Singapore cryptocurrency exchange got almost half of the funds raised for wallets - about 4.3 million ETH. The other part was transferred to one of the cryptocurrency wallets.

It was possible to track the funds of defrauded investors thanks to the cryptocurrency transaction analysis service created in the Special elaborations department of the Technopark of St. Petersburg.

According to experts, the obvious signs of the financial pyramid of the PlusToken project were tracked from the very beginning. Among them, the referral system of distribution of funds offered to investors, which is characteristic of financial pyramids and MLM marketing, and unjustifiably high monthly profit (from 6% to 19%.). The PlusToken fraudulent scheme is already being compared with the principles of organizing the BitConnect closed cryptocurrency platform. It entered the market through an ICO at the end of December 2016, and by the end of 2017, its BCC tokens have established themselves as one of the fastest growing cryptocurrencies. She guaranteed her investors a 40% return for a month. According to CoinMarketCap, in a fairly short time, BCC capitalization reached $ 2.6 billion, and the ATH rate was $ 460. But in January 2018, BitConnect unexpectedly for its investors announced the closure of the exchange and the lending program, notifying them that they would continue to provide services as a wallet, but at the same time change the format to a media platform. Immediately after this announcement, investors fell into a panic, and the BCC rate lost 96% of the cost.

It is interesting to note that in Russia until now, users have access to the PlusToken mobile wallet, which can be downloaded from the GooglePlay and AppStore stores. For the storage of their crypto assets in the wallet, Russian investors are still guaranteed a profit of 6% to 19% monthly. True, the “blog” section of PlusToken’s Russian site is currently inactive (or deleted), and all consultations are invited to receive via WhatsApp.

Source: IT News.

Washington D.C., Dec. 20, 2018 - The Securities and Exchange Commission's Office of Compliance Inspections and Examinations (OCIE) today announced its 2019 examination priorities. OCIE publishes its exam priorities annually to promote transparency of its examination program and provide insights into the areas it believes present potentially heightened risk to investors or the integrity of the U.S. capital markets. This year, particular emphasis will be on digital assets, cybersecurity, and matters of importance to retail investors, including fees, expenses, and conflicts of interest.

OCIE is steadfast in its commitment to protect investors, ensure market integrity and support responsible capital formation through risk-focused strategies that improve compliance, prevent fraud, monitor risk, and inform policy. They believe our ongoing efforts to improve risk assessment and maintain an open dialogue with market participants advance these goals to the benefit of investors and the U.S. capital markets.

This year, OCIE's examination priorities are broken down into six categories:

1. compliance and risk at registrants responsible for critical market infrastructure;
2. matters of importance to retail investors, including seniors and those saving for retirement;
3. FINRA and MSRB;
4. digital assets;
5. cybersecurity; and
6. anti-money laundering programs.

The published priorities for 2019 are not exhaustive and will not be the only issues OCIE addresses in its examinations, Risk Alerts, and investor and industry outreach. While the priorities drive OCIE’s examinations, the scope of any examination is determined through a risk-based approach that includes analysis of the registrant’s operations, products offered, and other factors.

The collaborative effort to formulate the annual examination priorities starts with feedback from examination staff, who are uniquely positioned to identify the practices, products, and services that may pose significant risk to investors or the financial markets. OCIE staff also seek advice of the Chairman and Commissioners, staff from other SEC divisions and offices, and the SEC's fellow regulators.

OCIE is responsible for conducting examinations of entities registered with the SEC, including more than 13,200 investment advisers, approximately 10,000 mutual funds and exchange traded funds, roughly 3,800 broker-dealers, about 330 transfer agents, seven active clearing agencies, 21 national securities exchanges, nearly 600 municipal advisors, FINRA, the MSRB, the Securities Investor Protection Corporation, and the Public Company Accounting Oversight Board, among others. The results of OCIE’s examinations are used by the SEC to inform rule-making initiatives, identify and monitor risks, improve industry practices, and pursue misconduct...

Source: SEC.gov

Released today, Chainalysis latest crypto crime research on $1.6B in hacks, darknet market activity, and Ethereum scams shows how they decoded each type of crime and what it means for AML compliance and investigations.

Crypto crime increased in 2018, but it made up a smaller slice of a much larger market. Indeed, according to they analysis, illicit transactions comprised less than 1% of all economic bitcoin activity in 2018, down from 7% in 2012.

Even so, crime remains a significant problem in the cryptocurrency ecosystem. Exchange hacks have generated billions of dollars in criminal proceeds, darknet market activities have netted hundreds of millions of dollars in illicit revenues, and scams targeting individuals have stolen tens of millions of dollars.

Moreover, criminal use of cryptocurrencies has become far more sophisticated. As a result, in this second edition of their Crypto Crime Report, they go deeper in analysis to seek out granular insight into three categories of criminal activity.

Then, they examine the surprising resilience of darknet markets as law enforcement takes aggressive action against them. In a report on the “whack-a-mole” problem with the darknet, they look at how transaction activity briefly subsides then quickly reroutes itself to new platforms when major darknet markets are closed down.

They also examine changing trends in Ethereum scams, where individuals are targeted, as last year’s phishing schemes lose their effectiveness and more complex Ponzi and ICO exit scams emerge to make outsized gains.

Finally, they discuss the role of cryptocurrency in the broader context of money laundering and highlight the importance of different types of services that are used to integrate illicit cryptocurrency into the clean economy...

Source: Chainalysis Research.

In Russia, announced an online service that analyzes the risks of using cryptocurrency and investigates crimes committed in this area. The development was carried out by the company "Internet-Rozysk".

The service, which was launched last year, was called the Security Intelligence Cryptocurrencies Platform. In January, an alpha version of the service appeared on the site www.ueba.su.

According to the project director Igor Bederov, the service was launched in December last year and as of January 2019, he found 46 thousand bitcoin wallets, which were given the status of "unreliable".

SICP analyzes blockchains, websites, chat rooms, and forums to identify those cyberwiches that are used in criminal schemes, such as fraud, blackmail, money laundering, and so on. Also, the development team of the platform builds interactions with market participants, public organizations and law enforcement agencies. One of the promising goals of the service creators see deanonymization of purses and assigning them the status of “trustworthy” - provided that they are not seen in the implementation of suspicious operations, and “unreliable” - if the operations that were carried out through the wallet raise doubts. At this stage, the strategic partners of the project are CipherTrace, Sentinel Protocol, Crystal, CryptoPolice, Wawes, SPb BlockChain, CryptoRussia.ru and ACISO.

The developers set themselves the task of giving users the ability to track all transactions from the moment they are sent until the moment they receive funds on the recipient’s wallet. The system should work by analogy with the methods that are now used by the financial supervision authorities. The service will identify wallets that are used for money laundering, terrorist financing and other illegal purposes. Also, the service will be able to monitor transactions on certain wallets for a long time, which will allow detecting fraudulent ICOs.

SICP is a breakthrough technology for Russian crypto-business. This prominent development will allow participants of the Russian cryptocurrency market to protect themselves from fraud, journalists said.

Note that on pre-sale, SICP tokens can be purchased at half price, and the alpha version of the service from January 9 can be connected to www.ueba.su.

Source: CryptoRussia.ru

Saturday, 29 December 2018 21:56

BELGIAN AUTHORITIES UPDATE BLOCKCHAIN BLACKLIST

The Belgian Financial Services and Markets Authority (FSMA) has updated their ongoing list of businesses reported to operate cryptocurrency scams. With this most recent addition of 14 websites the “blockchain blacklist” has now expanded to 113 websites to avoid.

The FSMA has been updating their blacklist throughout 2018. In March, the Brussels Times reported that Belgian tax authorities had started hunting for cryptocurrency investors. “Anyone speculating on the cryptocurrency market must pay tax of 33% on gains made, and declare these within the section ‘miscellaneous income’ on their tax return,” the Times reported.

Despite warnings from the FSMA consumers continue to log complaints regarding fraudulent activity on cryptocurrency exchanges. The FMSA has warned consumers to look out for various red flags. FSMA warns...

Source: Bitcoin, Ethereum and Blockchain News | CryptoGlobe.

About SICP

Security Intelligence Cryptocurrencies Platform - Cybersecurity infrastructure of the blockchain and antifraud in the cryptocurrency sphere. SICP - antiscam, trust, compliance.

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Address: Russia St. Petersburg Marshal Tukhachevsky 22

Phone: +7 (812) 983-0483

Fax: +7 (812) 983-0483

Email: sicp@ueba.su

Website: www.ueba.su

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