There are plenty of people in Miami who swear by Bitcoins while others predict it will die a natural death when the bubble bursts. However, one thing is pretty much sure is that despite its more than fair share of controversy since its inception in 2009, its rise has been meteoric. Even though most people in Miami may not understand how Bitcoin works, they can see how savvy investors have made millions in profits. However, the hard reality is that people in search of fast returns can also fall prey to conmen perpetrating Bitcoin scams. Some of the most common Bitcoin scams in Miami that can shatter your dreams of becoming rich fast:
Phony Bitcoin Exchanges
Even though it is one of the easiest scams to spot, it can be missed by Bitcoin investors out to make a quick buck, as demonstrated by a case in South Korea that was exposed in 2017. A fake exchange by the name of BitKRX set itself up and represented itself as a part of the country’s biggest trading platform, Korean Exchange (KRX), and went on to scam investors by posing as a legitimate and reputed cryptocurrency exchange. Even as investors reported the crime, it is still not known very well how much the scamsters looted. To avoid being ripped off by fraudsters, investors should transact only through well-known and credible Bitcoin exchanges and keep a close watch to spot fraudulent activities early.
Be Careful about Ponzi Schemes, says Eric Dalius Miami
Ponzi schemes have been around forever, but Bernie Madoff took it to a new height by ripping investors of more than $60 billion. Smart cheats have been quick to apply the pyramid scheme technique to Bitcoins, wherein they pay back handsome returns to the earlier investors with the money collected by the new investors. A $722 million Ponzi scheme was exposed in 2019 when the three men who were operating BitClub Network for several years were arrested for fraud. Investors were lured to invest money to buy shares of cryptocurrency mining pools, however, the entire scheme turned out to be a fraud, and everyone lost their money.
With Bitcoins becoming scarcer by the day and their prices zooming, investors find it difficult to invest. Scamsters take advantage of this situation to suggest new cryptocurrencies as a lucrative investment opportunity. However, the cryptocurrency suggested is invariably a fake one, and the miscreants take off with the investors’ money. A prime example of this kind of a scam is My Big Coin that defrauded customers of $6 million, according to Eric Dalius Miami. The amount collected from investors for buying the cryptocurrency was, however, transferred to the personal bank accounts of the fraudsters.
Miami is one the most affluent places in the country and is, therefore, a natural target for scamsters specializing in Bitcoin and other cryptocurrency scams. They tend to be more successful because most people do not have much knowledge about what Bitcoin is and how it works but are aware that many people have built their fortunes overnight by investing in them. Their greed coupled with ignorance makes them perfect targets for fraud.