$2.8 Million Worth of Bitcoins Seized By Police in UK 0 165

Approximately, US$ 3 Million worth of Bitcoins have been taken into official custody by UK police from the young British boy who had allegedly lodged a phony website for the purposes of scamming visiting consumers. Yearlong investigation revealed that he was holding huge personal wealth in cryptocurrencies, including Bitcoins.

A teenage boy, who is the resident of South Lincolnshire has been arrested by police over alleged involvement in crypto scam. The boy was arrested on 26th October, 2021 and it has been told by police that he is only 17 years old. However, keeping in view his young age, the police has decided not to mention his name in the press or elsewhere.

However, police details that when the boy was arrested, he was in possession of Bitcoin valuing more than US$ 3 Million. He was brought by the police before the regional Prosecutor namely Sam Skinner. Skinner stated that the boy was involved in scamming people for crypto. He had established a phony website which gave an impression of an authentic online website of shopping. The boy’s website looked identically the same as if it was “Love2shop”, an online shop where gift vouchers are being sold.

Skinner further told that the boy made sure that the visitors fall for the trap. For this, he proceeded to advertise his fake website by paying money to Google for advertising purposes. If someone were to google the webpage of “Love2shop” then they were taken to the boy’s website boy instead of original “Love2shop”. When the visitors came fell for the trap and assuming that they were on the genuine website, they then proceeded to buy things. They then moved their intended items of purchase into the shopping cart and when they were done, they proceeded to check out. At the stage of “check out”, they were asked to disclose their personal information and credentials of credit cards and debit cards.

The Prosecutor observed that the boy was misusing the personal data of the people by fraud.

However, only a week ago, the boy decided to shut down his website. He did so because he became wary of the fact that an investigation was initiated by original website. But during this time he had stolen vouchers worth more than US$ 8,954, which he then utilized for acquiring Bitcoins.

The boy was arrested past year in the month of August. The investigation has been concluded and findings given. During the course of investigation, the boy informed police that he had acquired Bitcoins and other crypto coins from the proceeds of fraud. The police found from his possession at 48 Bitcoins and other valuable cryptocurrencies, which collectively value more than US$ 3 Million.

He was also found in possession of information relating to 12 thousand credit cards. He was also holding information regarding some 200 accounts belonging to PayPal users.

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IMF Says Russia and Iran May Use Crypto Mining for Monetizing Energy 0 41

The April 2022Global Financial Stability Report of the IMF has highlighted the consequences of the ongoing Russian invasion of Ukraine. The document said that the role of the US dollar was bound to be affected because of the conflict, as it would lead to the introduction of central bank digital currencies (CBDCs) and the global financial system’s resiliency would also be put to a test. The climate transition goals could also be put at risk because of the priorities associated with energy security. Another issue that would have to be dealt with in the coming years by lawmakers is the ‘cryptoization’ which is likely to occur because emerging markets are experiencing a widespread use of crypto.

IMF cited an increase in crypto trading volumes seen after the introduction of sanctions on Russia to back their statement. This included the financial penalties that had been imposed by Western nations on Russia because of its military invasion. The report said that such cross-border transactions were increasing in the long-term, which means that there would be challenges when it comes to imposing sanctions and managing capital flow. The IMF noted that crypto transactions have increased in both Russia and Ukraine because of the capital restrictions that have been imposed.

However, it is important to note that there has been a fall in liquidity in centralized exchanges where the hryvnia and ruble trading pairs are concerned. Therefore, using crypto exchanges for making large transfers has become rather impractical due to reduced liquidity. But, the IMF admitted that users do have the option of evading some measures via the crypto ecosystem because the identity verification requirements are quite lax in this industry. Hence, the international organization said that blocking new deposits of ruble and freezing crypto assets meant that users could have shifted to non-complying or less transparent crypto platforms and service providers.

Experts at IMF believe that both Russia and Iran could circumvent their respective sanctions via crypto mining. The nations could use their energy resources for generating revenue via crypto mining outside of the traditional financial system. Currently, the countries have a limited share of crypto mining activities, but there is a possibility that it could be increased, considering the size of the mining industry. The IMF quoted estimates showing that almost 11% of the mining revenues of bitcoin could have gone to Russia, which was around $1.4 billion per month, while Iran’s share had been 3%.

Bank of England Says Crypto Assets have Financial Stability Risks 0 80

On Thursday, the Financial Policy Committee of the Bank of England disclosed that they are working on developing a regulatory framework for digital assets. The central bank also made a reference to the sanctions that have been imposed because of the war between Russia and Ukraine in the statements. Bureaucrats and financial regulatory authorities all over the world have become increasingly concerned in recent times that Russia could take advantage of crypto assets to bypass the economic sanctions that have been imposed. The press statement of the BOE said that it was unlikely for crypto assets to provide Russia with a feasible way to get around sanctions at a large scale for now, but there was a possibility they could do so.

Therefore, it is a must to ensure that there are effective public policy frameworksthat can accompany innovation in crypto assets for maintaining the integrity and trust in the financial system. The crypto economy has been highly criticized by some members of the Bank of England for quite a while. Last year in mid-November, Andrew Bailey, the Governor of the Bank of England, had expressed his concerns about the adoption of bitcoin as legal tender in El Salvador. Sir Jon Cunliffe, the deputy governor for financial stability for the central bank, said in the following month that prices of crypto assets could drop to zero.

On Thursday, the report of the FPC talked about financial stability. The committee of the central bank noted that the FPC is assessing the risks to the financial system’s stability and it has concluded that these are currently limited. This is because their size remains limited for now and they are not that connected with the wider financial system. However, the FPC said that if they continue to grow at the same pace, and if they become interconnected with the overall financial system, then these crypto assets could pose a risk to the stability of the financial system.

Since the conflict between Russia and Ukraine began, politicians and lawmakers all over the globe have been discussing, developing, or even proposing laws aimed at regulating and researching digital currencies. The FPC’s statements on Thursday show that the BOE wants to classify crypto assets in the same category as it does traditional financial assets. Not only does the FPC plan on developing a regulatory framework that would govern digital assets, it has also mentioned stablecoins.

The FPC said that a major stablecoin that does not have a reliable deposit guarantee could turn out to be a risk to the UK’s financial system. According to the committee, if they introduce a systemic stablecoin, which is backed through a deposit mad with a commercial bank, it would result in significant risks to the stability of the financial system. All of this talk about crypto has been brought forward because of the Russian-Ukraine conflict and the possibility of the former using cryptocurrencies to evade the tough economic sanctions that have been imposed by Western nations due to its actions.

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