Bitcoin Scams UK 2021–What To Look Out For

Cryptocurrency is a digital currency and provides new ways of saving, spending and investing. Bitcoin was the first type of cryptocurrency launched in 2009, and since then it has grown in popularity. It is accepted by many merchants as a form of payment and there are even legitimate Bitcoin investment funds.

However, the growth of bitcoin has led to many scams. The anonymity and lack of regulation have attracted those who perpetrate Bitcoin scams UK 2021. If your Bitcoin has been stolen or you have lost money in a bitcoin investing scam, contact Trader Defense Advisory. We will discuss your case and will advocate on your behalf with regulators and authorities. 

FCA Warning About Bitcoin Scams UK 2021

The UK’s Financial Conduct Authority warned that UK citizens face losing large amounts of money in cryptocurrency assets, lending products, and investment schemes. The FCA expressed concerns specifically about deals that promise extremely and unrealistically high returns. 

“If consumers invest in these types of products,” the FCA warned according to CNBC, “They should be prepared to lose all of their money.” Despite these warnings, the British authorities have not declared every cryptocurrency scam illegal.

 For instance, after Britons lost close to 2.5 million pounds sterling in a Bitcoin pyramid scheme, British authorities did not declare the scam illegal. This is one reason it is essential to have fund recovery agents like Trader Defense Advisory working on your behalf. 

Types of Cryptocurrency scams

  1. Super High Return Investment Scams

The kind of scams the FCA has warned about unfortunately is quite common. One of the early Bitcoin scams UK 2021 occurred under the name of Lyfecoin, which promised that if investors staked claims for five months, they could receive 100% returns. This scam began late in 2020 and was intended to go into 2021. 

When the investors did not receive returns after five months, they were told that more time was needed to realize huge returns. They extended staking periods to 12 months or even 24 months. The term “staking” is bitcoin terminology that means committing money on the blockchain for a stipulated amount of time for rewards. 

  1. Hacks and Impersonating Celebrities

Cases of scammers impersonating celebrities on social media networks and asking for donations to charities proliferated in 2020 during the COVID-19 crisis. Another major scandal started in 2020 and is becoming among the biggest Bitcoin scams UK 2021 as eight British citizens have been arrested in a celebrity SIM swap scandal. 

The U.S the U.K authorities arrested eight men in connection with swapping the SIM cards of high-profile individuals to steal their bitcoin and get their cryptocurrency passwords as well as other personal information. Not only do high net worth individuals need to be worried–there are many hackers out there stealing bitcoin information from regular people. 

  1. Bitcoin Extortion

Whether it is the threat of having obtained X-rated photos, damning documents or films of the recipient from hacking their computer, bitcoin extortion is one of the major bitcoin scams UK 2021. The sad fact is that some people give in to the blackmail even though they feel the person threatening them may be bluffing and have no sensitive information. 

Fear is often a greater motivator than greed, and many people fall for bitcoin extortion because they may not realize how complicated it is to hack into a remote computer. The extortionists ask for bitcoin because it is an anonymous form of currency that can hide their identities. 

If You Have Been the Target of Bitcoin Scams UK 2020–Contact Trader Defense Advisory

Bitcoin scams UK 2021 are growing faster than law enforcement can cope with them. You need an advocate who will listen to your claim, create a case and fight for your cause with regulators and authorities. 

Trader Defense Advisory has the experience and qualifications to help you win your claim and to help you on the road to retrieve your funds. Consult with our experts today so we can get started on your case.

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