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Bitcoin Scams US 2021-What We Can Learn from Them

Bitcoin scams in the US 2020 were in the news, and already in 2021, there have been some high-profile incidents. The growth of fraudulent behavior connected to cryptocurrency has risen substantially, particularly on social media. The social network Gab was completely taken down temporarily because a large number of accounts were posting bitcoin wallet scams. This problem is symptomatic of the growth of bitcoin scams in the US 2020 and 2021. 

It takes a team of experts to track down bitcoin scams. Because of the ease with which scammers can mask their transactions with bitcoin, professionals such as Trader Defense Advisory, with skill and expertise in combating cryptocurrency fraud, will assess your claim and work at unmasking the bitcoin scammers. Talk to us today if you want to track down bitcoin scammers.

Why Is Bitcoin Connected to Scams? 

Bitcoin is a digital currency that does not have a physical equivalent in the form of coins or bills. It is not centrally regulated by a government but instead is managed through the blockchain. Transactions are anonymous and bitcoin is free from the usual regulations that accompany banking and trading. 

Bitcoin, though loosely regulated, is not dodgy or illegal. Bitcoin scams in the US 2020 were prevalent, but that doesn’t mean bitcoin itself is problematic. Many mainstream merchants accept bitcoin as payment and some legitimate brokers have cryptocurrency funds. However, it is an attractive vehicle for scam artists because the anonymity of the transactions provides cover for illegal behavior. This makes money laundering and even extortion easier. 

Imposter Phishing Scam

One common social media bitcoin scam is a hacker or imposter creating a fake account or hacking the actual account of a public figure and asking for fake donations of bitcoin in return for a doubled donation. 

One of the major bitcoin scams in the US 2020 happened when a hacker, who turned out to be a teenager, hacked into the Twitter accounts of Elon Musk, Bill Gates, Kanye West, and Barack Obama asking its fans to donate with bitcoin and promising to double the amount to a major charity. Bill Gates’s account promised to give double back to the actual sender. 

It took a couple of hours for Twitter to contain the incident, although many of the accounts sent messages immediately that the tweet was not genuine. A total of $113,000 was taken, which was returned to users and the 17-year-old hacker was apprehended. Although the issue was resolved, it emphasizes how easy it is to mimic the tweets and posts of public figures. 

The takeaway from this incident is to avoid sending money if a public figure seems to be advocating a campaign. Usually, when celebrities start an initiative there is a news story or a press release. Check the news before sending any money, and send through an official donation platform, not social media. 

Fake Wallets and Platforms 

Along with actual bitcoin, many consumers purchase wallets, apps, and bitcoin trading platforms. Since these deal with your actual money in the form of bitcoin, it is essential to ensure they come from a reputable seller. Common bitcoin scams in the US 2020 involved  selling apps and wallets. When people purchase them, their bitcoin is stolen by the people who sold them. 

Bitcoin Investing Scams 

Like other investment scams, bitcoin investment scams have grown significantly in recent years. The SEC sounded the alarm about the increase in Ponzi schemes at the theft of investors’ money through false investments. 

Investing in bitcoin scams in the US 2020 often dealt with flipping. These flippers take advantage of the fact that bitcoin transactions are hard to reverse. They often meet people on social media and start talking to them about a fantastic investment opportunity that is guaranteed to double their money. All they have to do is give them their bitcoin, and the other person will give them the dollar equivalent. 

Talk to Us If You Have Lost Money in US Bitcoin Scams 2020 or 2021

Bitcoin scams US 2020 proliferated and seem to be increasing in 2021. If you have lost money in a bitcoin scam, speak to Trader Defense Advisory about what happened. Our experts are well-versed in the dynamics of cryptocurrency fraud and tracking down funds lost in a scam. Talk to us today so we can take care of your claim and work toward retrieving your funds.

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