Bitcoin latest – Elon Musk scammers stole more than $2million in crypto hacks as regulator reports 'huge spike'

FRAUDSTERS impersonating Elon Musk have stolen more than $2million in cryptocurrency scams,the US Federal Trade Commission said on Monday.

In one type of scam, people are told that if they give a certain amount of cryptocurrency to a "celebrity" they will get more back.

"People have reported sending more than $2 million in cryptocurrency to Elon Musk impersonators over just the past six months," the FTC said.

Scammers also impersonate government authorities or a potential romantic partner, the FTC said.

Overall, nearly 7,000 people reported losses of more than $80 million since October, with a median loss of $1,900, the agency said.

That's twelve times more reports of scams than the same period a year earlier, the agency said.

Read our cryptocurrency live blog below for the very latest updates…

  • Niamh Cavanagh

    WHAT IS BITCOIN?

    Bitcoin got you baffled? Here’s what you need to know:

    • Bitcoin is a virtual currency
    • It’s traded between people without the help of a bank
    • Every transaction is recorded in a public ledger, or “blockchain”
    • Bitcoin is created by mining
    • Mining involves solving difficult maths problems using computer processors
    • Bitcoin can be traded anonymously, which can make it a popular way of funding illegal activities
    • The value of Bitcoin fluctuates wildly
    • Bitcoin is one of many different cryptocurrencies but by far the most popular

    BITCOIN POSTS RECORD WEEKLY OUTFLOWS AS GAINS STALL

    Bitcoin hit record outflows last week, as investors diversified into cryptocurrency assets with new developments in their specific network such as ethereum, data from digital currency manager CoinShares showed on Monday.

    Outflows for bitcoin products and funds totalled $98 million, or 0.2% of total assets under management. For the year, total bitcoin inflows amounted to $4.3 billion.

    In 2020, investors pumped $15.6 billion into bitcoin products and funds, while ethereum inflows reached nearly $2.5 billion, data showed.

    Since hitting a record just under $65,000 in mid-April, bitcoin's price has fallen 35%.

    Bitcoin was down 5.2% at $44,073, driven by tweets from Tesla Inc. chief Elon Musk.

    WHAT IS CHIA?

    A popular cryptocurrency created by BitTorrent inventor Bram Cohen, Chia is described as “green money for a digital world”.

    Chia launched last week and has already become popular in some countries in Asia, such as Vietnam and China, reports the Telegraph.

    “Instead of consuming massive amounts of electricity… proof of space leverages the over-provisioned exabytes of disk space that already exist in the world today,” Chia claims.

    • Niamh Cavanagh

      CRYPTO TOKEN

      Shiba Inu coins are one of the latest cryptocurrencies to hit the market – we round up five things you need to know.

      It comes as crypto fans are on the hunt for the next success story to follow Bitcoin.

      Buying cryptocurrencies and decentralised finance tokens, as well as stocks and shares, is a risky business.

      Investing is not a guaranteed way to make money, so make sure you know the risks and can afford to lose the money.

      Cryptocurrencies are also highly volatile, so your cash can go down as well as up in the blink of an eye.

      As always, you should never invest in something you don't understand.

    • Niamh Cavanagh

      FAKE ELON MUSK GIVEAWAY FEATURED IN CRYPTOCURRENCY SCAMS

      Fake promised giveaways by celebrities such as Telsa CEO Elon Musk are being used by scammers to cash in on interest in cryptocurrencies, the U.S. Federal Trade Commission said on Monday in noting a jump in complaints about cryptocurrency fraud since October.

      In one type of scam, people are told that if they give a certain amount of crytocurrency to a "celebrity" they will get more back.

      "People have reported sending more than $2 million in cryptocurrency to Elon Musk impersonators over just the past six months," the FTC said.

      Musk had been a supporter of cryptocurrencies but recently knocked dogecoin by calling it "a hustle" on national television. He has also recently said that bitcoin would not be accepted to buy a Tesla because of the environmental costs associated with mining it.

      Scammers also impersonate government authorities or a potential romantic partner, the FTC said. Overall, nearly 7,000 people reported losses of more than $80 million since October, with a median loss of $1,900, the agency said. That's twelve times more reports of scams than the same period a year earlier, the agency said.

    • Niamh Cavanagh

      ETHEREUM CO-FOUNDER 'BURNS' BILLIONS OF DOLLARS IN SHUBA INU THEMED CRYPTOCURRENCY

      One of the co-founders of ethereum has "burnt" billions in Shiba Inu themed cryptocurrency saying that he didn't want to hold onto the viral currency.

      Vitalik Buterin moved coins in a dead wallet address destroying 41 per cent of the currency that was in circulation.

      Buterin kept some of the coins but intends on donating them to charity.

    • Niamh Cavanagh

      WHAT IS BITCOIN?

      Bitcoin got you baffled? Here's what you need to know:

      • Bitcoin is a virtual currency
      • It's traded between people without the help of a bank
      • Every transaction is recorded in a public ledger, or "blockchain"
      • Bitcoin is created by mining
      • Mining involves solving difficult maths problems using computer processors
      • Bitcoin can be traded anonymously, which can make it a popular way of funding illegal activities
      • The value of Bitcoin fluctuates wildly
      • Bitcoin is one of many different cryptocurrencies but by far the most popular

      BITCOIN 6PM UPDATE

      1 Bitcoin equals £30.289.

      WHY IS THE CRYPTOCURRENCY MARKET DOWN?

      Cryptocurrency markets are down after recording major gains and reaching all-time highs since the start of the year.

      Coins plummeted by up to 17% last week after Elon Musk's shock announcement that Tesla would no longer accept Bitcoin.

      It shaved $6.1billion in value from Bitcoin and sent the crypto market into a downwards spiral. Today, Bitcoin and other coins like Shiba Inu, Dogecoin and Yearn Finance are also all down.

      Investing in any cryptocurrency is a very risky business. Cryptocurrencies are volatile which means the price can rise and fall sharply.

      You can be left with less money than you put in and remember, you should never invest money that you can't afford to lose. There have also been warnings around scams related to cryptocurrencies. As always, you shouldn’t invest in something you don’t understand.

      • Aliki Kraterou

        MARK CUBAN SAYS HE OWNS 3250 DOGECOINS

        Tech billionaire Mark Cuban announced in a tweet on Saturday he owns 3,250 dogecoins he bought with his 11-year-old son.

         

      • Aliki Kraterou

        WHAT IS LITECOIN?

        Litecoin entered the cryptocurrency market as a competitor to Bitcoin in 2011.

        Like the other cryptocurrencies – it is run on Blockchain. Each individual Litecoin is known as a token – which is the digital asset that you own when you invest.

        According to GoBankingRates, in 2017 Litecoin was the first cryptocurrency to complete a Lightning Network transaction

      • Aliki Kraterou

        ARK'S COMMENT AFTER MUSK'S TWEET

        ARK Investment Management has shared a statement following Elon Musk's tweet.

        "In our view, the concerns around bitcoin’s energy consumption are misguided. Contrary to consensus thinking, we believe the impact of bitcoin mining could become a net positive for the environment.

        "With real-world data, we demonstrate how mining could impact the amount of renewable energy provisioned to the grid by transforming intermittent power resources into baseload generation by way of energy storage."

      • Aliki Kraterou

        WHAT IS CARDANO?

        Cardano is a cryptocurrency that uses blockchain, making it difficult to be hacked.

        It was launched in 2017 and set up by Charles Hoskinson, who was one of the eight co-founders of Bitcoin rival, Ethereum.

        Every time someone buys or sells the cryptocurrency, it's permanently recorded on the platform's blockchain.

        Unlike some other cryptocurrencies, the blockchain is more transparent so anyone can see it. It's managed by the Cardano Foundation.

        The "altcoin" has been designed to make sure that investors can have some say in how the currency is run.

      • Aliki Kraterou

        SONY'S PATENT FOR BETTING SERVICE THAT COULD ACCEPT BITCOIN

        Sony has filed a patent for a platform that would allow users to bet on esports using physical currency, bitcoin, or even in-game items.

        Bets would come in many forms as the patent states "Wagers may be pecuniary, e.g., money or bitcoin, or may be non-pecuniary, e.g., game assets, digital rights, and virtual currency."

      • Aliki Kraterou

        WHAT IS DOGECOIN?

        Dogecoin is a cryptocurrency which was launched in 2013 and has been marketed as the "fun" version of bitcoin.

        Originally invented as a joke by software engineers Jackson Palmer and Billy Markus, the Dogecoin has the image of a Shuba Inu dog as its logo.

        Two weeks after its launch, the value of it jumped 300% after China banned banks from investing in cryptocurrencies, according to Investopedia.

        Dogecoin then skyrocketed alongside other cryptos during the bubble that peaked in 2017, and it fell with the rest of them over 2018.

        The price of Dogecoin has risen by 20,000 per cent compared to this time last year.

         

      • Aliki Kraterou

        ELON MUSK'S BAN ON BITCOIN COULD DAMAGE ITS VALUE

        Aaron Shields, Executive Director of Experience Strategy EMEA at Landor & Fitch told the Express : "More damage may still come to Musk’s own personal brand, built up through a cult-like following amongst liberals and cryptocurrency investors who will likely be feeling betrayed by the announcement.

        "Bitcoin’s value was already plummeting following Musk’s SNL appearance and Tesla’s withdrawal has caused it to drop further.

        "Individuals who invested in bitcoin because of his endorsements will expect answers and, while Musk has weathered past storms because of his grand visions, he’ll have to use all of his charm over the coming days and weeks to avoid lasting impact on both his and the Tesla brand."

      • Aliki Kraterou

        WHAT IS ETHEREUM?

        Ethereum is the second-largest cryptocurrency – one which some have said could eventually overtake Bitcoin as the dominant coin in the market.

        It is also a ledger technology – using “blockchain” – that companies are using to build new programmes.

        Blockchain is where encrypted data can be transferred securely, making it nearly impossible to duplicate or counterfeit.

        There were eight co-founders of Ethereum – all of whom boast "huge personalities, huge egos, some more than others,” cryptocurrency author Camila Russo told Decrypt.

      • Aliki Kraterou

        BITCOIN VS CLIMATE CHANGE

        Last week Elon Musk announced Tesla would stop accepting Bitcoin as payment due to environmental reasons.

        Musk tweeted an image of a statement which said: "Tesla has suspended vehicle purchases using Bitcoin.

        "We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.

        He went on to add: "Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment."

        Alex de Vries, of Digiconomist, told the Telegraph: "Bitcoin mining is a dirty business, and if you are a company selling electric vehicles, it is weird to enable a currency with a substantial carbon footprint.

      • Aliki Kraterou

        WHAT IS CHIA?

        A popular cryptocurrency created by BitTorrent inventor Bram Cohen, Chia is described as "green money for a digital world".

        Chia launched last week and has already become popular in some countries in Asia, such as Vietnam and China, reports the Telegraph.

        "Instead of consuming massive amounts of electricity… proof of space leverages the over-provisioned exabytes of disk space that already exist in the world today," Chia claims.

      • Aliki Kraterou

        BITCOIN ACROSS THE WORLD

         

      • Aliki Kraterou

        ELON MUSK'S BAN ON BITCOIN PAYMENTS COULD AFFECT ITS VALUE

        Sam Onigbanjo, Founding Partner, Capital Markets Academy, told Express.co.uk: "Elon Musk's comment on Bitcoin is a very interesting one, seeing he has banned the purchasing of Tesla goods with bitcoin but at the same time has kept all Telsa's bitcoin.

        "I see his 'ban' as a market move that could be used to force down the price of Bitcoin for a period of time.

        "His ban also gives environmentalists another platform to stand on as damage to the environment is most felt with bitcoin as opposed to any of the other cryptocurrencies

        "Some things are clear, firstly Elon Musk's ban will surely slow down the bullish momentum with bitcoin and may even lead to a massive dip in its value.

        "Secondly, Elon Musk and Tesla's ban will shine a light on Environmental issues around mining bitcoins.

      • Aliki Kraterou

        'BRING CHESS FANS AND CRYPTO ENTHUSIASTS TOGETHER'

        Andreas Thome, CEO of Play Magnus Group, added: "We are thrilled to announce that FTX is partnering with the Tour to bring the communities of chess fans and crypto enthusiasts together in celebration of these two fast-growing industries.

        "We look forward to bringing first-of-its-kind crypto-themed activations for chess and sports to our Meltwater Champions Chess Tour and broadcasts.

        "For Play Magnus Group, this is a big moment as we, along with many chess players around the world, have been following cryptocurrencies for many years and are passionate about celebrating this fast-growing industry in its very own tournament, the upcoming FTX Crypto Cup."

      • Aliki Kraterou

        CONTINUED

        The FTX Crypto Cup is organised by Play Magnus Group, a global leader in the chess industry, and FTX, a leading cryptocurrency exchange.

        FTX has also entered into a long-term agreement with Play Magnus Group to become its Official Cryptocurrency Exchange Partner.

        Carlsen, who has reigned as world number 1 for a decade, spoke of his excitement ahead of the event.

        The Norwegian said: "As a big sports fan and NBA enthusiast, I was thrilled to learn that FTX is continuing its move into sports by partnering with the Champions Chess Tour.

        "The Tour has been extremely exciting both as a competitor and a fan, and I feel a renewed sense of motivation now that we’ve found a partner in FTX that shares our common goal to grow chess and the Tour."

      • Debbie White

        WORLD'S FIRST BITCOIN CHESS TOURNAMENT

        The world’s first bitcoin chess tournament, the FTX Crypto Cup, is being held from May 23.

        "A cool $100,000 of that is a bonus paid in crypto by new sponsor FTX, the leading cryptocurrency exchange.

        "Fans will be able to track the prize pot's value in real-time throughout the broadcast to see how it fluctuates," says a press release.

        The tournament is the final major in this season’s $1.5million Meltwater Champions Chess Tour, the richest and most prestigious online chess event in history.

        World Champion Magnus Carlsen will take centre stage as the current tour leader, but will face stiff competition in a field of 16 star names.

      • Debbie White

        ETHER BOUNCES BACK

        Ether, linked to the ethereum blockhain, fell to as low as $3,123.94, and then bounced back to $3,540 today.

        Meanwhile, Dogecoin fell nearly 7%, with these two, and Bitcoin, well under recent records.

        "A nice pop, but this is small versus the Musk-induced selling that has been taking place lately," said Neil Wilson, chief market analyst at Markets.com.

        "There is nothing new I can say about bitcoin – volatile, highly speculative, easy to manipulate; a bubble."

        Source: Read Full Article