A Bitcoin cloud mining company has dealt a blow to at least one investor, a loss valued at R$3 million. In recent years, the cryptocurrency market has seen several scams with its image, the most popular being financial pyramids. When raising funds from investors, leaders don’t even invest in digital coins, but pay the former with the money of the youngest.
Another common scam is YouTube videos with celebrity images. By inviting investors to send cryptocurrencies to receive double, fake videos with images of celebrities have already raised a lot of money from victims.
But one of the most common, though not as famous, is the mining scam.
Bitcoin cloud mining company deals $525K hit on investor
Operating in Nebraska, United States, the company Satitech Mining & Machinery (“Satitech”) created investment pages over the internet.
The company’s main offer was to obtain high returns from the practice of mining Bitcoin in the cloud, but this was just another blow to the industry.
An investor from that state who saw the ads put $525,000 into the possible scheme, about $3 million. A month later, the company told the client that its money had valued immensely, to $2.3 million, about R$12 million, giving a 4-fold return in just 30 days.
Thus, the investor asked to withdraw the value of the company, when he received the information that he would have to pay the additional release fees. The investor’s mother even sought out a Nebraska brokerage to process the transactions and pay the fee demanded by the suspected company.
However, upon learning of the case, the brokerage sued Nebraska’s Financial Exploitation Vulnerable Adults Act, sending the government a report against Satitech.
“The Nebraska Department of Banking and Finance (“NDBF”) has issued a Cessation and Withdrawal Order (“Order”) against an entity that has claimed to offer investments over the Internet. Through the broker’s and NDBF’s efforts, the investor and her mother realized that Satitech was offering an illegitimate investment, and the broker’s action prevented further investor losses.”
Now Satitech will have to stop any funding in the state of Nebraska, having to become regularized as a bond issuer to continue offering its suspect products. To the Deputy Director of NDBF, Claire McHenry, this case showed that regulators and companies in the financial sector already work together to prevent crime.
It is worth remembering that the Federal Revenue Service of the United States is already preparing operations for the apprehension of cryptocurrencies arising from crimes in the country, which could confiscate billions in 2022.