Cryptocurrency Fraud and Theft

Cryptocurrency fraud and theft are on the rise, as criminals take advantage of the decentralized nature of cryptocurrencies to steal money from unsuspecting investors. Importantly, financial institutions are responsible to detect and prevent suspicious and authorized transfers. 

Here are some examples of cryptocurrency fraud and theft:

• Financial institutions  or cryptocurrency brokerage firms processing unauthorized or suspicious transactions;

• Cryptocurrency brokerage firms selling unregistered securities;

• Pump-and-dump schemes: These schemes involve artificially inflating the price of a cryptocurrency through false or misleading information;

• Phishing scams: These scams involve sending emails or text messages that appear to be from a legitimate source, such as a cryptocurrency exchange or wallet provider;

• Cold wallet hacks: Cold wallets are devices that store cryptocurrency offline. They are considered to be more secure than hot wallets, which are online wallets. However, cold wallets can still be hacked, especially if they are not properly secured;

• Impersonators: This fraud involves tricking victims into giving up their personal information or cryptocurrency. For example, a scammer might pose as a government agent or customer support representative for a cryptocurrency exchange and ask the victim for their login information.

• Fake ICOs: These are initial coin offerings that are not legitimate. 

• Malware attacks: These attacks involve installing malware on a victim's computer that can steal their cryptocurrency. 

• Sim-Card Swaps

If you think you have been the victim of cryptocurrency fraud or theft, you should contact our law firm to discuss your legal options.