Bitcoin and Cryptocurrency Scams Exposed

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Bitcoin and Crypto Currency

Bitcoin and Cryptocurrency Scams Exposed

Bitcoin and other “Altcoins” (alternative Cryptocurrencies) are making far more headlines than any other Celebrity.

This frame grab made available by the BBC on Monday, May 2, 2016, shows the creator of the Bitcoin, Craig Wright speaking in London.

In 2011, the pair founded a Florida-based firm called W&K Info Defense Research LLC, which was engaged in bitcoin mining and software development and research. Kleiman owned between 50 and 100 percent of W&K, the lawsuit said.

It claims that the Kleiman estate owns the rights to $5,118,266,427.50 worth of bitcoin and IP rights.

The filing says it is “unclear” whether Wright, Kleiman or the two together were responsible for the cryptocurrency’s creation. But the document adds that it is “undeniable” that the pair was involved in bitcoin “from its inception,” and that they acquired a “vast” number of bitcoins from 2009 to 2013.via Self-proclaimed bitcoin creator sued for allegedly stealing $5 billion worth of crypto, other assets

sued for 5 billion fraud source BBC News via AP

Cryptocurrencies, especially Bitcoin are getting more and more popular despite the roller-coaster ride or price volatility the Digital Currency is going through. Different Coins are mined, created and become popular but not as popular and fast rising as the Bitcoin.

Bitcoin is one of the most widely known names in this sector, and is synonymous with Cryptocurrency, like Zerox is with Photocopier machines. There are many different Coins like Bitcoin, Ethereum and Litecoin that are riding high, but did you know the number of Cryptocurrencies available over the internet as of 19 August 2018 is over 1600 and growing. 

Platforms are created to trade Cryptocurrencies and allow people to trade without fees. People have made bad investments because they did not understand how to trade the Cryptocurrencies.  As knowledge is lacking, the “big picture view” is not clear and people think when they trade a coin they made a big gain, and then look it up and figure out that some of the money is missing, puzzled they ask where did it go.

Will the EU regulate the Cryptocurrencies

LONDON (Reuters) – The European Union stands ready to regulate Cryptocurrencies if risks from the sector are not tackled at the global level, the bloc’s financial services chief said on Monday.

A global investment craze over bitcoin BTC=BTSP and other virtual currencies in the last year has seen wild gyrations in their valuations, making fortunes for some investors while others have lost heavily.

“This is a global phenomenon and it’s important there is an international follow-up at the global level,” Valdis Dombrovskis told reporters.

“We do not exclude the possibility to move ahead (by regulating crypto-currencies) at the EU level if we see, for example, risks emerging but no clear international response emerging.”via EU says it stands ready to regulate Cryptocurrencies

Europe and Bitcoins
Are Cryptocurrencies a Threat to the Economy?

Is there a threat to the overall economy with Cryptocurrencies becoming more and more popular. Could they pose a substantial risk for investors? Could Cryptocurrency without safeguards be vulnerable to financial crime? Too many governments they only represent a tiny part of the financial system.

Markus Ferber, a centre-right member of the European Parliament, said a quick EU regulatory response was needed, rather than waiting years for international rules to trickle through – source: EU says it stands ready to regulate Cryptocurrencies.

Cryptocurrency Hacker Attacks on Networks

Attackers continue to socially engineer cryptocurrency users by tricking them into visiting malicious sites such as “,” pictured. (Source: Cisco Talos)

Criminals continue their quest for acquiring cryptocurrencies without having to buy and manage their own mining equipment. They’re resorting to attacks aimed at stealing the cryptocurrencies via hacking, demanding them as ransom payments as well as sneaking cryptocurrency mining software onto servers to generate virtual currencies (see Cybercriminals Go Cryptocurrency Crazy: 9 Factors).  Source: Cryptocurrency Theft: Hackers Repurpose Old Tricks

How do they do it?

Malware is still one of the easiest operators to install on to a computer or network without the user knowing.

Old Trojan Tricks and New Targets are the new wave game.

Web injections and or attacks called “the man in the browser” are specifically designed to be activated when a user is visiting the specific website like a cryptocurrency exchange.

It will intercept the keystrokes of a user and will alter the browser interface as a disguise and the attacker will drain the user account of all the funds.

Network Hacker Bitcoins and Cryptocurrencies
public domain Pixabay

How the Trickbot hijacks the coins?

“In the normal payment scenario, a user looking to buy coins provides his or her public bitcoin wallet address and specifies the amount of bitcoin to purchase. When submitting this initial form, the user is redirected from the bitcoin exchange platform to a payment gateway on another domain, which is operated by a payment service provider. There, the user fills in his or her personal information, as well as credit card and billing details, and confirms the purchase of coins,” the X-Force researchers write.

“This is where TrickBot hijacks the coins. This particular attack targets both the bitcoin exchange website and that of the payment service to grab the coins and route them to an attacker-controlled wallet.” Source: Cryptocurrency Theft: Hackers Repurpose Old Tricks.

Servers of Enterprises are mainly at risk

Kafeine warns that enterprise resources are very much at risk from these types of attacks. “Because most of the nodes in this botnet appear to be Windows servers, the performance impact on potentially critical business infrastructure may be high, as can the cost of increased energy usage by servers running much closer to capacity,” he writes. “Given the significant profits available to the botnet operators and the resilience of the botnet and its infrastructure, we expect these activities to continue, along with their potential impacts on infected nodes.”

He adds that it’s a virtual certainty that botnets such as Smominru will “become more common and to continue growing in size.”  Source: Cryptocurrency Theft: Hackers Repurpose Old Tricks.

Network Hacker to mine bitcoins
Public Domain from pixabay

Bitcoin is losing its heat to the Thieves

Threat intelligence firm reviewed underground markets and found out that bitcoin even still accepted, is losing its ground and the underground market is more fond of Monero, Bitcoin Cash, Zcash, Litecoin, Dash, and Ethereum.

The firm says that within the next 12 months, it expects bitcoin to no longer be the dominant payment mechanism for cybercrime service buyers and sellers (see Bitcoin’s Reign on the Dark Web May Be Waning).  Source: Cryptocurrency Theft: Hackers Repurpose Old Tricks.

Different Types of Cryptocurrency Wallets:

What is a Cryptocurrency Hardware Wallet?

These cryptocurrency Wallets store your information offline so it cannot be hacked. While it is more expensive than most other wallets, It can be a great investment.  A lot of people buy 2-4 hardware wallets to spread the risk of losing one.  We recommend storing this in a safety deposit box at your bank or in a very safe and secure place in your home.  The downside of these wallets is losing your wallet, be careful! For security, we think these are the best cryptocurrency wallets available.

What is a Cryptocurrency Web Wallet?

These are the easiest wallets to use and the most convenient.  Most websites will allow for 2-factor authentication through Google, text message, or Authy.  This adds a great layer of protection.  We have heard of very few cases where these accounts were hacked individually but we have heard of entire exchanges getting hacked which results in stolen bitcoins.  We always keep some of our Bitcoin, Litecoin, Ethereum and other Altcoins in web-based crypto wallets so we can easily day trade and move funds around.

What is a Cryptocurrency Desktop Wallet?

These are great wallets for storing cryptocurrency.  You don’t have the concern of losing your wallet like a hardware cryptocurrency wallets. You don’t have the concern of getting hacked like web-based cryptocurrency wallets.  These desktop wallets are generally free or low cost.  You are however at risk of losing your wallet if your computer fails or is lost or stolen.

What is a Cryptocurrency Mobile Wallet?

Both Apple and Android offer mobile app based cryptocurrency wallets.  These are great because you can use them on the go and on the fly.  We have read several reports on Reddit about fraudulent apps that steal your bitcoin wallet and all of its contents so please be sure to use a well known Mobile crypto wallet.


Trading and buying Cryptocurrencies like Ethereum, Litecoin, Zcash, Monero, Dash, a.s.o is a judgement everyone has to make for themselves. Of course, you should never invest money you can not afford to lose.  Trading in Cryptocurrencies can ruin you if you do not know what you are doing. Please take caution.

If you want to start, the first thing you need to do is establish your Crypto Wallet – which is similar to a brokerage account that you need to establish before you can trade equities (stocks/shares), bonds, currencies and commodities.

The Coinbase referral program lets you earn a bonus for each successful referral registered to your account!

Have you already invested in Cryptocurrency? What was your experience and what are your thoughts on the development of all of these Alternative Coins. We’d love you to leave your comments and share your thoughts.

All the best Jim

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April 23, 2018 at 7:33 am

Hi Jeff,

I appreciate the fact that you read my post. It’s a bonus that you learned something from it.

“Can you still make money online with Bitcoin and which is the best one to trade on”? That’s of course the question that everyone is asking.

To me, the answer is clear.

In the short term, you might well lose money.

But if you take a 5-10 year time horizon, and don’t pay much attention to the daily noise coming out of the market and commentators, there is definitely money to be still made.

My top picks based on available data as of today are:
1. Bitcoin (they will always have their problems but have the largest market share and will continue to do so for now)
2. Etherium (because they have led the way with the development of “smart contracts” and this market will explode)
3. ZCash and/or Monero – (these two have sized upon investors demands that their ownership of coins/tokens be private or transactions be anonymous)

The key here is an investor’s willingness to buy and hold.

Your always. Jim

Jeff Marshall

April 23, 2018 at 2:02 am

Enjoyed reading your post and found some interesting bits of information I didn’t know about Bitcoin and CryptoCurrency. It was also interesting to read about the creators of Bitcoin.
With all that being said, can you still make money online with Bitcoin and which is the best one to trade on?
Looking forward to your responses, Jeff.


April 19, 2018 at 11:12 am

Hi Darren,

I really appreciate you taking the time to show an interest in this blog. Iv’e had an interest, or perhaps more accurately, a fascination with Cryptocurrency and Blockchain ever since they arrived on the scene. I believed back then, and still do now that our view of what “money” is and our daily experience of how “economic value” is stored and exchanged for something else of “value” to us, will change irreversibly as a result of these two new phenomena.

And history tells us that with the advent of every new financial instrument, there was a period of time in which information dissemination and regulatory rigor lagged behind what was happening out there on the street. The problem with this happening today is that the world wide web has simply allowed those who are predisposed to deviant behavior to wreak havoc on a wide scale in a much quicker time frame than was possible in the period pre-internet.

Still, I’ve never been a fan of Governments acting as surrogate parents to an entire populace, in order to try to protect them against all that is evil or bad in this world. Make no mistake, I don’t condone illegal and immoral business behavior. It’s just that people would not be so gullible if they all received a proper Financial Education in School or College. Sadly, geed plays an important role in the investment decision making process.  And while ever there are the have’s and the have not’s in Society, people who seem to epitomize success will always find easy targets in people who desire to be part of that success story.

And that is the topic for a completely new Blog!

Remember what the mind can conceive and believe, it can achieve ~ Napoleon Hill

Yours always. Jim 


April 19, 2018 at 8:48 am

Unfortunately the world of cryptocurrencies has become riddled with countless scams and dodgy schemes in recent years. I guess with the popularity of Bitcoin, everyone wants to take advantage of that in some way.

I’m really glad to hear some of these crypto scams are being exposed finally and shut down. The sad thing is, a lot of people have been conned in the process and lost a lot of money.


April 8, 2018 at 4:31 am

Hi James,

Thanks for taking the time to engage. I’m always glad to hear that people get value from my posts. And I love to hear other people’s opinions, experiences and views.

I’ve got a financial markets background. Kind of. I never worked in one of the large investment banks. I made my own path and always found a way of providing value to my customers. One of the most rewarding (and at the same time stressful) phases of my business life was when I ran an investment fund.

I’m really glad Bitcoin and other investable Crypto tokens  weren’t around in my day. Why? Because it would have been my job to decide whether to invest client funds into that asset class or not. I would have been facing a “dammed if you do, and dammed if you don’t scenario”. Had I invested at the right time, i.e. just before Bitcoin went on one of its wild rides (10,000 % gain!!), and there was/is absolutely no analysis or investment model that can predict the perfect timing of an entry or exit into Bitcoin, I would have been a hero. The same goes for having not invested at the wrong time,  i.e. just before Bitcoin plummeted back down to earth. Every other scenario would have resulted in me being the villain!!

The funny thing is, I strongly believe that alternative stores of value like an electronic currency unit, will eventually make its way into the global financial markets.

It’s going to require a functioning regulated market to be put in place, just like they did for foreign currency more than 20 years ago.

The other really interesting sub plot to all this is that I believe there is more money to be made by investing in Blockchain companies and solutions (cautiously and after the proper amount of due diligence of course). Blockchain is the enabling platform that all electronic tokens are built on.

I recently wrote a blog about Blockchain if you’re interested – What is Blockchain and does it really matter?

Always yours, Jim


April 7, 2018 at 11:46 pm

Hi there,
Thanks for sharing this post as I’ve been fascinated by the phenomenon of which is CryptoCurrencies. This is a great summary of where the market is at the moment and it’s potential to head. The hackers part is particularly worrying, especially as there have been a few news articles recently highlight have X number of bitcoin have been successfully stolen. Keep up the good work!



April 2, 2018 at 9:33 am

Hi Jacob,

Thanks for taking the time to share your thoughts here. It makes everyone’s life richer when we share…
Cryptocurrency is the new Foreign Currency (FX) of the asset classes. I remember back in 2001 sitting in a small pokey room at the far end of a dimly lit corridor of a building on Wall Street, in a room filled with 6-8 guys sitting in cramped conditions, who were working for two FX Market Makers who had developed the first few online trading platforms for retail traders to trade FX Spot contracts. FX was previously used in a more traditional trade related function. 2001 saw the explosion of unregulated, speculative FX margin trading, with participants able to deposit $1,000 and trade a contract size of $100,000 (100:1 leverage). The company in whose offices I was sitting was FXCM. It went on to become the dominant FX Broker in the business, until the big banks got involved much later. The FX market is now regulated and that’s a good thing.

If you are going to invest in Crypto currency, then Bitcoin is as safe a bet as any. It has always suffered from violent swings. It has experienced major security breaches. Is has been counted out by so called pundits and experts many times before, and yet, it has survived, posting it’s highest value on record just recently.

So hang on to what you have. Ignore the news. Pretend you have not made any investment at all. Look at the value at the end of every 1/4 or even six months. It will come back. How far is hard to predict. But time is a good healer in all markets. Crypto is no different.

Yours always. Jim


March 31, 2018 at 9:26 pm

Wow, I was not aware of Trickbot or other ways that hackers can steal one’s information or credit card info. Scary! I will have to look into securing my browsers better for sure.

I totally agree with you, investing in Cryptocurrencies certainly requires a rick tolerance and caution that cannot be overlooked.

I have invested in Bitcoin before, but I am not sure whether that was a good idea. The market has dropped so low, do you think it will rise again? A lot of people are saying that it will only go higher by the end of the year.

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