Brazilian Congressman Asks for Official Inquiry Into Country’s Alarming Crypto Fraud

  • Brazilian Congressman Aureo Ribeiro has asked for an official inquiry into the country's rampant crypto scams.
  • The Congressman has called crypto-based pyramid schemes and "epidemic" in Brazil. 

A Brazilian Congressman has asked to open a Parliamentary Inquiry Commission into the country’s rampant crypto-based scams

Congressman Aureo Ribeiro, who is the author of a bill that seeks to regulate Brazil’s crypto marketplace, has asked Parliament to officially address the country’s ongoing issue with cryptocurency fraud. 

According to documents acquired by local news outlet Portal do Bitcoin, the inquiry asks for investigation into crypto companies such as Atlas Quantum, Zero10, Trader Group and others. 

The document reads, 

Increasing interest in cryptocurrency transactions has been accompanied by a proliferation of fraud. The lack of regulation and vigilance combined with high levels of abstraction, anonymity, cross-border operations, and other peculiarities inherent to the crypto market shows potential risks to users and investors.

Ribeiro highlighted the need for an investigation into Atlas Quantum, in particular, following a series of financial issues that emerged in September. There are reportedly numerous investor swho fear Atlas won't honor the liabilities it has to its customers if it receives numerous withdrawal requests.

The Congressman also called crypto-bassed pyramid schemes an “epidemic” in Brazil. 

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Crypto Scammers Responsible for $24 Million in Bitcoin Theft Through First Half of 2020: Report

Michael LaVere
  • New Whale Alert report shows crypto scammers have raked in $24 million in bitcoin through the first six months of 2020.
  • One scammer leveraged YouTube advertising to steal $130k in BTC per day. 

Crypto monitoring service Whale Alert has published a report showing that crypto scammers are responsible for $24 million in bitcoin theft through the first half of the year, including the exploitation of YouTube advertising. 

According to the report “Chasing Crypto Criminals” published July 10, cyber-thieves are finding easy prey in the form of bitcoin and other crypto-asset investors. Whale Alert summarized its exhaustive reviews of hundreds of websites and thousands of reports of theft as “crypto crime pays. A lot.” 

Whale Alert claimed there was little risk involved for crypto-based criminals, despite the massive economic impact being imposed on victims. The report confirmed at least $38 million in bitcoin alone being stolen via scams over the past four years, excluding the use of Ponzi schemes. 

The report reads, 

Some of the most successful scams made over $130,000 in a single day with nothing more than a one page website, a bitcoin address and a decent amount of YouTube advertising.

Whale Alert outlined another scam which brought in $1.5 million over six months through promoting a fake cryptocurrency exchange. The report claims the advertisement took victims to an “amateurish website riddled with spelling errors,” before tricking users into depositing their funds. 

Featured Image Credit: Photo via Pixabay.com