Filipino Authorities Deport Alleged Bitcoin Fraudster to South Korea

Reporting by the Manila Bulletin said the Filipino Bureau of Immigration (BI) has deported a Korean citizen who was accused of playing a part in a Bitcoin fraud scheme.

According to BI Chief Bobby Raquepo, Go Yongsung allegedly worked with five other people to steal more than $33 million from Korean citizens. The fraudsters allegedly ran a pyramid scheme where they enticed people to buy non-existent Bitcoins.

The suspects involved allegedly promised victims they would reap big profits on their investments.

Work By Authorities Continues

BI Commissioner Jamie Morente also said a Chinese national was arrested and would be deported for alleged involvement in economic crimes. It was not entirely clear if the two schemes were related.

Chief Raquepo maintained that foreign criminals who were hiding out in the Philippines would eventually be caught “by the long arm of the law” and sent back to their homelands.

According to The Next Web, Filipino police are actively searching for others involved in the Bitcoin scam.

Crypto Pyramid Schemes Becoming Common

Pyramid schemes involving cryptocurrency have become more of a popular strategy for fraudsters and swindlers in the last year.

In April, CryptoGlobe reported on two South Korean men who allegedly stole around $18.7 million dollars through a cryptocurrency pyramid scheme.

The two were each given multi-million dollar fines since the scheme was deemed to be a “risk to the socioeconomic order with mass production of many victims."

Just a few days before, authorities in China announced the arrest of nine suspects who were accused of stealing more than $13 million through a pyramid scheme.

The criminals allegedly sold a cryptocurrency for $0.48 per token and then promised investors they would get a $13,000 daily return.

Perceptions that cryptocurrencies in general are some sort of a scam is a line of thinking that has also been established among some people. A July survey carried out in South Africa found that 43% of respondents likened cryptocurrencies to a pyramid scheme.


Featured Image Credit: "Scam" by "Nick Youngson" via Alpha Stock Images; licensed under "CC BY 3.0"

Kraken OTC Head Says It’s Too Early to Call Bitcoin a 'Safe Haven' Asset

Michael LaVere
  • Kraken head of OTC trading Nelson Minier says it's too early to call bitcoin a "safe haven" asset.
  • Compares the current atmosphere of crypto trading to how Wall Street used to be. 

Nelson Minier, head of over-the-counter (OTC) trading at crypto exchange Kraken, says that it is too early to call bitcoin a “safe haven” asset, despite the cryptocurrency gaining popularity in that regard. 

Too Early for Save Haven Status

In an interview with Nasdaq TradeTalks, Minier compared the current state of bitcoin and crypto-assets trading to how Wall Street used to operate in the past. 

According to Minier, 

Wall Street ain't what it used to be. The first 15 years I was on Wall Street, it was fun. I was very fortunate. I started in the CDS market which feels a lot like crypto. Here you have a lot of financial innovation, a lot of trading. It feels very much like that...there's a lot of energy and enthusiasm about this progress and where it's going.

Bitcoin has been gaining popularity as a so-called “safe haven” asset. According to the growing belief among analysts and investors, BTC is an attractive alternative to fiat and the traditional stock markets as a hedge against economic downturn. 

However, Minier believes it’s too early to label bitcoin as a safe haven, given the high price volatility. 

He continued, 

So, I’m not so sure that it’s a safe haven asset yet, but I do think that it’s starting to act like one. I think that people are starting to portfolio manage, are starting to come in slowly. And when the market is getting shaky you saw Bitcoin rise, I mean, you wouldn’t see that before, it was trading like a risky asset.

Despite calling bitcoin's safe haven status premature, Minier admitted that “we're heading that way for sure.”