Many can learn a lesson from this horror story as grime crimes in crypto alleys are rampant and the story of earnest investor losing a huge amount of money is an eye-opener to all of us.
Just how much helpless we may become in the face of smart network frauds.
A user registered as PowerofTheGods with the social media platofrm Reddit, was putting money into crypto as savings since 2016 and used crypto wallet for the purpose which was Ledger Nano S and also maintained 4 Metamask digital hot wallets.
But, last December, on checking his account, he was choked with shock on fining his wallets empty while his savings were worth $1,20,000 at the time.
Such was the act of hacking and his wallet was accessed after he clicked on some pernicious link.
HIs story and suffering is getting larger attention and last year too, a mega digital heist was committed by those,with outlandish ingenuity, which was worth $14billion.
The person in point shared his experience on Reddit’s r/Cryptocurrency.
As he was online, he came across a link which he clicked upon and as his Ledger was unlocked, a Trojan gained control of his browser and tool out the contents digital account in a few moments.
Though the user has brought the matter before the authorities but the latter appeared helpess as Crypto is beond any regulation and therefore under no one’s control.
Making the things worse, on sharing his torment on Reddit, very many users came forward with similar stories to tell comprising losses and of agony.
How do the crypto scammers plan the attack?
To misappropriate currency, criminals resort to many scams other than sending “intentional” links to crypto users. Among the scams that are most common in the field, “rugpulls” is one where crypto developers offer a new task before the investors and then decamp with millions of dollars with them.
In last year, we saw 37% of the total crypto scam was of “rugpulls” while in 2020, it was just 1%.
As to expose such scams, this is very easy, as new tokens can be created on Ethereum or on some other blockchain network and such can be subsequently listed on peer-to-peer platforms or in exchanges that are decentralized.
How can we stay safe and protected as a crypto investor?
- Keep a watchful eye for scammers. If too many benefits are offered for a meagre amount, such is likely to be a trick. For example, $10 price for an iPhone 🙂
- Never ever click upon the suspicious links or on any attachments,
- Always stress upon two way authentication for online accounts,
- To judge and monitor the trading volume 24 hours.
- Read news and analysis on crypto market through credible sources (like us)
As crypto-currency has emerged as the major draw card, regulations concerning this, is on cards. As is the buzz in digital currency market, President Biden would approve a law to constitute a Central Bank For Digital Currencies and federal agencies like Treasury and Department of Justice would help.
Further, as per the reports by Reuters, there would be discussions about a law to unveil a new digital currency.
This order will give way to policies and laws to regulate the crypto-currency market. It will also be taken care of that crypto-currency laws in America should be akin to those in their other nations, while Financial Stability Oversight Council will look into the discrepencies to identify loopholes.
In coming 6 months, we are likely to witness a central digital currency bank but is can be extended further if a nod from Congress is needed.
Well, Russian angle cannot be sidelined too, as high-class Russians may attempt to exploit the crypto-curency and blockchain network
In UAE, there is established the Dubai International Financial Centre (DIFC) which is planned as speical economic zone (SEZ) whose regulatory division has released a consultation paper outlining set of regulations concerning crypto tokens.
Draft Legislation Has Some Tweaks:
To regulate financial matters in UAE, Dubai International Services Authority (DFSA) gets into the shoes of financail authority.
The DFSA seeks views on its proposal “for a regulatory regime for persons wishing to provide financial services activities in respect to crypto tokens”. The deadline is set to be May 06.
Following this phase, changes will made to the draft legislation by DFSA by considering numoerus possibilities. The paper narrates,”Following the public consultation, we will decide which changes to the proposed regime are necessary and amend the proposed draft legislation as appropriate. The amended Regulatory Law and Markets Law will be submitted to His Highness the President of the DIFC for his consent and then for assent to His Highness the Ruler of Dubai”.
The DFSA would update its website with the new laws and rules once such get finalized. It also cautioned related parties that they “should not act on the proposals until the relevant changes are made”.
The DFSA has also explained that such suggestions are drafted for tokens that are of other types and unlike those used in investment. Regulatory agency maintains that investments tokens whcih were earlier regarded security tokens, have been covered in a specific consultation paper.
Besides, as per the recent consultation paper, crypto tokens are clearly defined and some are termed as forbidden and excluded tokens. Going by the DFSA, excluded tokens are utility tokens meaning “a type of token tat has a specific use case within a close ecosystem”.
Amazingly, the NFTs (Non fungible tokens) and Central Bank Digital Currencies (CBDC) are also included in the list showing excluded tokens.
As for banned and prohibited tokens, privacy tokens and devices, tokens based upon algorithms. The regulatory agency enlightened “ban these tokens and introduce a prohibition that no public offer or promotion” of any such tokens should take “place in or from the DIFC.”