Fraud linked to launches of fake cryptocurrencies on the rise in Russia

Malicious actors have begun using the initial coin offering (ICO) to deceive Russians. This was stated by Stanislav Kuznetsov, deputy chairman of the board of Sber, пишут «Известия».

According to him, the scammers persuade citizens to invest in new tokens, but the funds cannot be withdrawn.

«Они делают рассылку с предложением инвестировать в криптовалюту нового стартапа и направляют ссылку на оплату, а после получения денег перестают выходить на связь», – пояснил Кузнецов.

The Central Bank of Russia told the publication that a similar scheme is used in the creation of pyramid schemes. Such organisations often operate from overseas jurisdictions.

«Некоторое время ICO было популярным инструментом привлечения денег под «хайповую» идею, в которой мало кто разбирался», – уточнили в регуляторе.

A new wave of popularity for this type of fraud began in autumn 2021, amid the record-high price of Bitcoin and rising market capitalization.

Earlier, the central bank put eight companies on the blacklist, offering “earnings from Bitcoin”.

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