Xangle has found 132 known coin fraud attempts worldwide, but we will never know how many actually took place and how much was lost. Above all, it is still unclear how investors and the industry can avoid being cheated in the future. The forex industry seems to be seizing a great opportunity as it is adding Crypto CFDs to its trading offerings. Is it worth the risk?
Xangle, a crypto disclosure and transparency platform headquartered in Singapore, has released its latest findings on fraud within the cryptocurrency ecosystem, including all known cryptocurrency and digital currency fraud cases that have occurred from there January 1, 2012to December 31, 2020.
Research was conducted using media articles, press releases, legal documents, and publicly available court documents. The document, Crypto Investor Scam Report, found that investors lost an estimate $ 16,546,541,956 Since 2012, 132 members have been charged in 132 different fraud cases, but only 10.6% (14 projects) have indicted and convicted their members, and 18% (24 projects) have no known charges – civil or criminal. Of all 132 fraudulent coin offerings, only 527 people were prosecuted for their role in crypto fraud.
Lihan LeeThe co-founder of Xangle said, “In order for the crypto asset class to achieve its full potential, we must ensure that investors are protected and that those who defraud investors are held accountable for their crimes. As a community, we need to band together to drive fraudsters out of the industry by making full transparency a central pillar on which every crypto project is built. “
Just yesterday, the US Securities and Exchange Commission accused the founders of Start Options and B2G of defrauding hundreds of retail investors of more than $ 11 million through two unregistered digital asset securities offerings that claimed they were “the largest Bitcoin Exchange in terms of euro volume and liquidity “. and “consistently rated the best and most secure Bitcoin exchange by independent news media”. It was all a sham, of course, and now suspected fraudsters Kristijan Krstic, Robin Enos and DeMarr are likely to be injunctive, disgorgation plus interest, paying fines and facing a bar association.
As can be seen from Xangle’s report, the legal ramifications for such scams in the crypto room are close to zero, which only serves as a powerful motivator for criminal minds. In the meantime, the market capitalization for cryptocurrencies is getting bigger and bigger. As of May 2013, the total crypto market was valued at just over $ 1.5 billion, but after the recent uptick in late 2020, the digital asset market appears to be worth more than $ 1 trillion.
Xangle sources and curates on-chain data and assists with off-chain submissions to provide a 360-degree view of every crypto asset. The company’s mission is to apply advanced data analytics to solve the transparency problem surrounding the blockchain ecosystem. While their goal is noble, it is still difficult to imagine that their efforts will lead to containment of ICO fraud in the near or even distant future.
Given what is now known about the ubiquitous fraudulent activity in the cryptocurrency space, should the FX space offer crypto CFDs and expose themselves to fake assets with no underlying or intrinsic value?