It has been recently an issue on the rise, when dealing with the different currency systems and how to recognize the different fraudulent transactions. The most common method of fraudulent activities are the ones done with the use of the online transaction system such as the internet based trading which is known as the e-currency. These are the major reasons for the upsurge in the demand for the software, as well as the upswing in the number of business and people who wanted to earn money through this means. As such, more individuals are trying their luck in getting into the business of trading currencies such as bitcoins and the other digital currencies, and want to learn the different aspects that will help them do so. In order to do so, it is very important that you are equipped with the knowledge on how to spot a possible instance of the so-called ” Bitcoins frauds”.
To start with, when you come across any website that offers you the chance to trade in the electronic currencies like the bitcoins, then there is a very strong possibility that this could be a scam. There have been cases where traders have been tricked into sending them their money through these websites. In some instances, they have even been tricked into opening accounts under fraudulent names that they did not really have. Such types of fraud may take place due to various reasons.
One of the most common and perhaps the least surprising reason of all is the upswing in the number of fraudulent transactions that are done by inexperienced and newer investors in the world of the e-currency and the upswing in the number of users who are actually engaging into the futures trading commission. There are several reasons why this is happening. One of the reasons is that there are new investors who do not have much experience in handling the various aspects of the online business and they make mistakes in judgment in the process. Another reason is that there are newer investors who want to earn money quickly and easily without doing a lot of research and reading about the various aspects of the trade.
This is just one of the reasons why there are more transactions being reported in the news about people being conned into sending their money to the virtual currencies trading sites. One of the most popular forms of this kind of transaction includes the sale of “futures contracts.” This is actually an agreement that is made between two buyers and one seller in regard to the future buying or selling of one particular currency pair. For instance, if someone decides to sell 10 bitcoins as a hedge against fluctuations in the dollar, he can secure a sale order with a futures contract provider.
A good example of this is the transaction that was done by two persons in Las Vegas, nishay k. sanan and vijay k. saundy. After they sold a total of 20 bitcoins to each other in what was described as a futures contract, they were promptly hit with a civil law suit from the federal government for money laundering. They were later given fines of more than half a million dollars and are now appealing the verdict.
The nature of the transaction in this instance is important to understand. Nakay K. Sanan and vijay K. Sundy did not actually intend to enter into any such agreements with anyone else. However, the fact that they ended up being held criminally responsible for it shows that the mere existence of virtual currencies could lead to criminal activity. The very nature of the arrangement under the definition of “futures contracts” indicates that the buyer and seller are planning on spending or investing money in the future for a definite date. If there is no money or assets of value at the time of the transaction, then it is perfectly clear that the transaction does not constitute a true investment or exchange of funds, even though that may have been the intention of the parties in the past.
This brings us to another detail regarding why it is so difficult to nail down the hackers or ponzi scheme operators behind these kinds of activities. Even if the government can successfully nail down the investors or entrepreneurs who knowingly defraud other investors, how can they nail the criminal operators who use digital currencies as their method of operation? They can’t simply grab one of their digital currency wallets and hold them accountable for all of the investments or transfers that were made with that wallet in the past. That kind of evidence simply doesn’t exist because the nature of the internet and all of its dark web operations make it so difficult to gather and analyze. This is why it is nearly impossible to pin a concrete case against people who are involved in digital currency scams or schemes.
Unfortunately, this reality also makes it virtually impossible to properly punish people who engage in these activities, and it also makes it all but impossible to bring them to justice because so many different elements must be in place to make sure that the scam doesn’t go anywhere. For instance, there is the problem of a victim in America who has moved to a different country to avoid paying taxes on the income he or she would have been able to otherwise. If that person contacts the authorities to lodge a report of suspected fake bitcoin scams, then the authorities may very well close their investigation before they have the chance to see if the suspects truly committed the crimes. This is a huge lacuna that could very easily result in criminals being free to commit new crimes without ever serving time for their previous crimes.