In today’s bitcoin and cryptocurrency news, learn about how, after recent upheaval in the US financial industry, the medium to long-term prognosis for the cryptocurrency market has been “confirmed to the upside,” according to Coinbase (COIN) in a report Friday. Meanwhile, hundreds of users are said to have lost their cash after investing in iEarn Bot, a bitcoin trading program. According to experts who have researched the firm, it might be one of the greatest cryptocurrency scandals to date. Lastly,  a Miami man was detained in Colorado on suspicion of conducting a fake cryptocurrency and stock investment operation. Many customers informed NBC 6 investigators that they lost hundreds of dollars in the alleged fraud.

U.S. Banks Turmoil Strengthens Cryptocurrency Outlook

Original Source: Cryptocurrency Outlook Is Strengthened by U.S. Banking Turmoil: Coinbase

According to the research, more individuals understand the importance of an alternative financial system.

Coinbase (COIN) reported Friday that recent banking industry instability has “confirmed the upside” for the cryptocurrency market.

“Cryptocurrencies have exhibited some resilience, in part due to technical reasons,” but also because more people “now appreciate the fundamental value proposition of having an alternative to the points of failure inherent in the traditional financial system,” wrote David Duong, head of institutional research.

The Federal Reserve’s rate hikes have cut Treasury prices, lowering banks’ portfolios. Financial markets panicked after Silvergate Bank, Silicon Valley Bank, and Signature Bank (SBNY) collapsed, sending banking stocks falling worldwide.

“Open blockchains and transparent smart contracts stand in striking contrast to the inadequate risk management techniques that led to the volatility experienced in the U.S. financial sector this week,” the paper added.

The paper noted that this supports digital assets as a feasible alternative to the “points of failure seen in the present financial system.”

Due to the loss of some currency payment rails, crypto firms may face challenges in the near future, the paper said.

The Crypto Trading Software Could Have Cost Thousands of People Money

Original Source: Thousands may have lost out to crypto trading app

Many invested in the bitcoin trading program iEarn Bot and lost their cash.

Analysts think it might be one of the biggest crypto scandals.

Cryptocurrency trading promises big returns in a short time.

Nonetheless, law enforcement advises investors to do “due diligence” as frauds increase.

Money vanished.

Roxana, a pseudonym, is Romanian. She lost hundreds of euros in iEarn Bot. She requested anonymity to protect her professional reputation.

The company’s artificial intelligence initiative promised significant profits to bot buyers like Roxana.

Roxana tells BBC she bought a bot for a month. “Graphics showed how much money the software was making.

“Everything looked professional until they announced maintenance.” For a while, app withdrawals were halted.

Roxana says, “Some individuals started to say ‘I cannot withdraw… what is happening'”. “I requested withdrawal and the money vanished. My wallet never received any money once the portfolio went to zero.

Gabriel Garais, Romania’s top IT specialist, funded the app, which convinced hundreds of government leaders and academics to invest.

Mr. Garais also lost his savings on the app.

Roxana claims she wouldn’t have invested without Garais’s endorsement.

“We had the information to assume this would be a fraud,” she recalls, “but the fact that, between us and the corporation, there was a respectable teacher meant that we didn’t check too much – we didn’t mistrust too much.”

Romania is not alone. Romania is not alone.

Silvia Tabusca, a Romanian organized crime expert from the European Center for Law Education and Research, found that many foreigners had lost money in iEarn Bot.

The operation’s size shocked her.

“We have seen a lot of investors,” she says. “iEarn Bot claims 800,000 Indonesian consumers.”

Ms. Tabusca thinks the software initially functions effectively.

“They don’t let a nation withdraw when they have enough investors and money invested in it, and they open additional countries.”

The BBC fact-checked iEarn Bot’s website, raising concerns.

The site’s creator said he’d never heard of them. He reported to police.

iEarn Bot’s “strategic partners” include Huawei, Qualcomm, and the Massachusetts Institute of Technology, all of which denied knowing the firm.

The website has no contact information. The BBC found weight-loss ads on its Facebook page till 2021. Vietnam and Cambodia run it.

iEarn Bot emphasizes investor recruitment.

“This corporation operates more like a Ponzi scheme than a business,” adds Ms. Tabusca.

The BBC has heard chat exchanges where iEarn Bot’s customer care advised investors they had pay a 30% charge to get their money.

“Some customers were anxious to get their money back, so they paid the price – but they still couldn’t withdraw,” adds Ms. Tabusca.

iEarn Bot has ignored BBC requests for comment.


Local leaders in Nigeria and Colombia were pressured by Telegram-only iEarn Bot mentors to organize recruiting activities.

Colombian Andres alleged he deliberately recruited app users. He trusts the firm.

He claims that their US registration proved their legitimacy. “Paying.”

His country suspended withdrawals in December. The business informed investors it was turning USDT, a popular cryptocurrency, into iBot, which had the same value.

Investors were advised to wait until March to buy the new coin. They still can’t get their money.

“Investors borrowed. “Many people were affected,” adds Andres. “People were upset as local officials had no responses.”

The BBC used an analyst to identify one primary crypto wallet that accepted payments from approximately 13,000 prospective victims, making over $1.3m (£1m) in less than a year.

We couldn’t find the money’s destination.

Investigators often face this.

“One of the hurdles is to identify and attribute who the unlawful actor is, where the value is going, and then being able to take investigative measures and law enforcement action,” says Patrick Wyman, chief of the FBI’s new Virtual Assets Section.

He claims investigations in this scam reach worldwide rapidly.

He insists on prosecuting those responsible, even if it takes longer and requires international cooperation.

The FBI created the Virtual Assets Section last year to combat the rise in virtual currency crimes.

Scam victims can file complaints on the FBI’s page.

Law enforcement says the best approach to battle fraudsters is prevention.

Mr. Wyman thinks knowledge and thorough diligence before investing are crucial.

“Like everything else, if it seems too good to be true, it usually is.”

Miami Man Charged with Cryptocurrency Scam

Original Source: Miami Man Arrested for Allegedly Scamming People in Cryptocurrency Scheme

Colorado nabbed a Miami man for conducting a fake bitcoin and stock investing operation. The arrest comes months after multiple victims told NBC 6 Investigators they lost hundreds in the fraud.

“Brody” Ryan Crawford, a cryptocurrency entrepreneur, said his new crypto coin, “Cheetah,” would make people rich.

Crawford said, “We are about to take over the globe,” in a Dec. 5, 2021 video.

Alberto Rivera and four others told NBC 6 Investigators that Crawford was a con artist who made them think they would gain money but never did.

Dorian Godfrey told NBC 6 he lost $130,000.

Humza Quadri reported losing $75,000. “Half was mine and half was my parents’. That was horrible, and I still couldn’t tell my parents.”

The Department of Justice reported that Crawford, posing as a successful licensed stockbroker, duped people into investing “at least approximately U.S. $800,000 worth of cash and cryptocurrency” in his scheme but “did not return any victim funds, let alone generate the exponential returns he promised.”

Federal prosecutors said “he simply misappropriated investors’ assets and bitcoin for his own personal use and the personal use of collaborators, including to pay for fancy rental vehicles and gaming at the casino.”

As alleged victims like Alberto Rivera talked to NBC 6 Investigators months ago, local and federal law enforcement began investigating Crawford.

Alberto reported Crawford to the FBI and Miami-Dade Police.

Crawford was arrested in Colorado and charged with eight charges of wire fraud.

He’s in prison and his counsel hasn’t spoken to NBC 6. In 2022, he texted NBC 6, “Never spend what you’re not ready to lose.” I was going to build my worst trading platform. I was accused of running a Ponzi scheme, and some investors sold all their coins and grabbed all the liquidity.”

“Disgusting.” Theft. “Very wicked,” Dorian remarked.

Crawford lost two civil actions for paying investors with fake checks, but investors haven’t received their money yet.

ERM president Silka Gonzalez

Gonzalez advised crypto newcomers to educate themselves.

Her cybersecurity specialists tracked Crawford’s bitcoin to an overseas crypto exchange where the U.S. has no authority last year using law enforcement tools.

Alberto feels happy about Crawford’s arrest, but he doubts he’ll get his money back.

“At least I know he’s not going to victimize anyone else,” Alberto remarked.

Crawford may serve 20 years on each charge if convicted.

Summary of today’s bitcoin and cryptocurrency news

In summary, according to the survey, more consumers now see the core value proposition of having an alternative to the existing banking system.

Meanwhile, the FBI established the Virtual Assets Section last year to address the rising number of crimes using virtual currency. It encourages victims of scams to file a complaint on the FBI’s dedicated portal. But law enforcement authorities say that the best method to combat fraudsters is through prevention.

Lastly, using the same tools as law enforcement, cybersecurity experts were able to track the bitcoin that was sent to Crawford’s account and prove that it was sent to a cryptocurrency market outside the US last year. If Crawford is found guilty, he could face up to 20 years in jail for each offense.