$1B Crypto Ponzi Scheme Revealed by Regulators
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It’s been a tough six months to be a crypto investor. Whipsawing markets, faltering assets and economic pressures have all combined to shock the nascent market.
The price of crypto’s best-known coin, bitcoin, has slumped since November and currencies that were touted as safe and secure because they were pegged to the dollar and monitored via exchanges have seen their valuations crumble.
There were some high points.
Crypto evangelists began seeing a thaw in how the market is regulated, as international and domestic authorities began steps to understand and oversee the sector’s potential.
There was also an upswing during Russia’s unprovoked invasion of Ukraine. Many people were sending money in and out of Ukraine via crypto, once again proving how the currencies might eventually be used.
Despite those bright spots, the crypto sector now finds itself at a crossroads.
It has lost more than half its market value since November and remains ripe for scams, schemes and sudden plunges.
Now, regulators are adding one more swindle to that list.
$1B Ponzi Scheme Hits Crypto
Tax investigators said on May 13 that they have evidence of a $1 billion Ponzi scheme centered on the crypto market.
American tax officials said that they were following 50 separate leads into scams focused on things like nonfungible tokens and other decentralized parts of the sector.
“NFTs are one of the new modern digital ways of trade-based money laundering,” Niels Obbink of the Dutch Fiscal Information and…
