A minefield – This is the other side of the decor of any technological innovation. THE scammers take advantage of ignorance individuals and a regulatory framework still under construction to act. Misdeeds that steal their loot from ignorant investors by making them predict future profits. Foray into a Bitcoin mining story that moves.
False mining of Bitcoin, a business undermined from all sides
When one is interested in a subject as complex as the bitcoin mining, it is essential to dig, casually. And don’t trust anyone by checking the data before giving their money. Distrust is what a dozen victims of a certain man lacked. Chet Stojanovich, 38 years old. A highwayman who has just been sentenced to 3 years in prison for having stolen via his scheme nearly 2 million dollars. Story telling.
We are in 2019. The little Chester “ chet has a rich idea, pretending to be a crypto mining specialist. He then offers to its future victims to buy and manage mining machines for them. And of course to pay them the rewards of this supposedly lucrative cryptocurrency mining. A scheme tied up via multiple companies including the Chet Mining Co. LLC. And customers who, of course, will never see the color of these profits or of their money invested elsewhere. Except that “Chet” ended up being arrested by the police.
“Chet Stojanovich took advantage of an enticing new trend in the financial industry to scam his victims, convincing them to send him over $2 million in exchange for alleged cryptocurrency-related gear that they never received. This case is yet another reminder that even new financial horizons are teeming with old-fashioned fraud, but our prosecutors and law enforcement partners are prepared to root out these schemes. »
Damian Williams, US attorney in the case
>> A safe platform to buy your cryptos? Register on PrimeXBT (commercial link) <<
Crypto fraud: an old scheme in a new sector
Stojanovich is guilty of numerous counts:
- Failed to supply the allegedly acquired mining machines;
- Failed to provide promised mining services and crypto hashing power;
- Employed devious practices to create the illusion that said machines had indeed been acquired and used to provide the computing power promised to customers;
- Used client funds for his expenses and personal profile, including flights, hotel rooms, limos and private parties.
Stojanovich even has lied under oath to the judge concerning the existence and location of the mining equipment, therefore non-existent in reality. Chester ended up pleading guilty on November 29 and is now sentenced to 3 years in prison. The amount of his package, 2,108,927 dollars, will be returned to the victims.
THE bitcoin mining and more generally the crypto market, attracts scammers of all stripes. The latter taking advantage of the relative and temporary absence of regulation of what still looks like a Wild West of finance. Nevertheless, the technology, its adoption, and the arrival of regulations are advancing rapidly. And there is no doubt that in the near future, many of these practices will no longer be possible, fortunately for the curious who try to understand and invest themselves every day a little more this promising ecosystem for the future.
Looking for a solid exchange with no frills or KYC? Join PrimeXBT Today the platform for trading cryptos, but also commodities and currencies (commercial link).
To get more updates about the insurance you can follow our website or can bookmark it.