More than 23,000 Americans were recently defrauded in a cryptocurrency scam perpetrated by Mirror Trading International. Between 2018 and 2021, the company reportedly solicited over $1.7 billion from unwitting investors.
Mirror Trading International posed as a forex and cryptocurrency trading platform, but with fake trading statements. The company collected funds from the investors through Bitcoin for trading purposes. However, the funds were misused by the CEO, Cornelius Steynberg.
Steynberg went into hiding for years but was recently apprehended in Brazil by US authorities. He has been charged by the United States Commodities Futures Trading Commission (CFTC).
With over $1.7 billion lost, CFTC said it's the biggest cryptocurrency scam case it has handled. Crypto scams have been on the rise following the growing popularity of digital assets, including the increasing level of adoption and new users.
Over the years, cryptocurrency scammers have callously improved their tactics to defraud unsuspecting investors. However, here are some of the safety measures to prevent getting scammed.
If the proposed returns sound too good to be true, it usually is. Always verify any investment scheme before parting your money into it. Sometimes, grammatical errors can give it off, so always look out for errors in communications or on websites.
Double your cryptocurrency giveaways are scams, don't participate. Oftentimes, scammers impersonate popular figures to promote these giveaways. Always verify. Also, don't send cryptocurrency to giveaways under the guise of address verification.
Your wallet keyphrases are meant to be private, never give them out. Don't give anyone remote access to your computer because scammers can exploit the connection to access your records and online financial accounts.