Crypto-Scam Victims Seek 11 Billion In Compensation In Compliant To European Union
Crypto-Scam Victims Seek Billions In Compensation
Scams are, unfortunately, an almost inevitable part of the business world as every industry experiences them at certain times. However, emerging Industries such as cryptocurrency and blockchain are particularly vulnerable because not as much information is publicly known about them and as such, those were entering the industry or already in the industry are more likely to fall victim. There have been several reported cases of scammers swindling people out of huge amounts of money by promising them large returns on cryptocurrencies only to never deliver. These scams have been reported in various countries and it seems there is no end for them in sight in the near future.
As more proof of the increase of these scams in the last few years, roughly 30 victims cases of crypto-scams was compiled by a law firm and it was found that the victims are demanding compensation to the tune of $11.2 billion. The victims vary across the world and come from countries such as the UK, Slovakia, Australia, the United States and so on. According to Dr. Jonathan Levy, the solicitor at the firm Berlad Graham LLP, the case involves people from various countries but the jurisdiction of the case falls under EU Law and as such, it is a rather complicated matter.
Details Of The Case
Also, according to the original report, a majority of the crypto nodes that are involved were controlled from within in EU Nations. This speaks to the scope of the industry and how much of a global phenomenon it is as the victims and the perpetrators cut across various countries and continents.
It was noted that social media is one of the reasons why these scams continue to increase. This is because more people are using social media than ever before and conduct legitimate business across the various mediums. At the same time, illegitimate business is also carried out and scammers contact people through social media and creative profiles through which they lure in their victims with the promise of large returns. It should also be noted that the criminals take advantage of every sector of the cryptocurrency industry in order to carry out their crimes as Levy pointed out that the criminals “could not function without fintech and blockchain companies, exchanges, banks, and especially social media, which accelerated and facilitated this illicit transfer of wealth”.
With all these crimes on the increase, there have been fears and rumors that governments might become harsh towards cryptocurrency, going as far as to ban it. According to Michael McKibben, who is a social media expert with the firm, social media platforms themselves can keep an eye on these crimes but instead choose to ignore them.
As for a possible ban, Levy has stated that it is up to the government to find more ways to create accountability instead of imposing a blanket ban on an entire industry.
“Obviously Russia and China have taken one route. On the other hand, the US, without answering the big questions seems to be going after criminals selectively. The EU, however, has really done nothing but is the one jurisdiction with supranational money laundering and data rules. I think the EU will set the tone because everyone will need to conform since almost all crypto business touches Europe,” he said.