The Cryptocurrency and Digital Asset Fraud Casebook

ISBN-13: 9783031236785 / Angielski / Twarda / 2023 / 190 str.

Jason Scharfman

Opis

Cryptocurrencies and digital assets have continued to gain widespread acceptance from both retail and institutional investors. With this rapid growth in both the crypto and digital asset spaces, there has also been an unfortunate steady drumbeat of fraudulent activity. It has been reported that in 2021 alone over $14 billion in crypto was stolen from investors. Frauds have touched all aspects of the crypto universe ranging from outright Bitcoin theft, pig butchering, and wallet phising to DeFi rug pulls, exchange hacks, mining scams and NFT fraud. The Cryptocurrency and Digital Asset Fraud Casebook will provide up to date information and analysis on fraudulent activity in the crypto space. 

Spis treści

Table of contents

 

CHAPTER 1 - Introduction to Cryptocurrency and Digital Asset Fraud and Crime

Introduction to Cryptocurrency and Digital Assets

Introduction to Fraud

Understanding Fraud Theft Targets

Understanding Fraud Approaches

Understanding the Elements of Fraud

Distinguishing Criminal and Civil Fraud

Distinguishing theft and fraud

Motivations for Fraud

Comparing Crypto Fraud with Traditional Fraud

Crypto Fraud Statistics

Crypto Romance Scams

Pig Butchering Scams

Crypto Phising Scams

Giveaway / Multiplier Scams

Celebrity and Corporate Impersonation

Social Media Hijacking

Goodwill Airdrop Fraud

Summary

 

CHAPTER 2 - Cryptocurrency Exchange Fraud and Hacks

Introduction to Cryptocurrency Exchanges

Hackers and Crypto Exchange Centralization

Introduction to Cryptocurrency Exchanges

Centralized versus Decentralized Exchanges

Spot trading

Case studies in Cryptocurrency Exchange Fraud and Hacks

Coincheck Hot Wallet Hack

Tumblers

Coincheck Hack Aftermath

Decentralized exchange hacks

GMX

Kyber Network

Transit Swap

Ascendex

MM.Finance

Bitfinex

Crypto.com

Cryptocurrency Exchange Hack Future Perspectives 

Summary

 

 

 

CHAPTER 3 - Cryptocurrency Ponzi, Pyramid and MLM Schemes: Part 1

Introduction to Cryptocurrency Ponzi Schemes

Introduction to Pyramid and MLM Schemes

Case studies in Cryptocurrency Ponzi and Pyramid Schemes

Brazilian Cryptocurrency Scams

Brazil’s “Bitcoin King”

Brazil’s Bitcoin Pharaoh

International Drug Trafficking and Money Laundering

Operation Egypto

African Crypto Scams

Challenges To Bitcoin Adoption in Africa

CryptoShares (Zimbabwe)

Egyptian Crypto Ponzi Scams

OneCoin

Summary

 

CHAPTER 4 - Cryptocurrency Ponzi, Pyramid and MLM Schemes: Part 2

Cryptocurrency Ponzi Schemes and Pyramid Schemes Continued

Turgut V

Profit Connect Wealth Services

Coinbase Former Employee

BitConnect

Summary

 

CHAPTER 5 - Non-Fungible Token (NFT) Fraud

Introduction to NFTs

Common NFT Fraud Typologies

Meme NFT Fraud

Case studies in Cryptocurrency Ponzi Schemes

Beer With Bill Murray

Frosties and Embers

Baller Ape Club

Vulcan Forged

NFT Minting Fraud

Pranksy

Artist Impersonation

Meebits

Marble Cards

OpenSea NFT Insider Trading Case

Summary

 

CHAPTER 6 - Decentralized Finance (DeFi) Fraud and Hacks: Part 1

Introduction to DeFi

Binance Blockchain (BNB Bridge)

Meerkat Finance

BadgerDAO

Rari Capital / Fei Protocol

KuCoin

EasyFi / Nexus Mutual

Pickle Finance

Akropolis DeFi and Origin Dollar

The DAO Hack

Vee Finance

Value DeFi

Alpha Finance

PancakeBunny and PolyBunny

Cashio

Mirror Protocol

Harvest Finance

Mango Markets

Boy X Highspeed (BXH) Exchange

Summary

 

CHAPTER 7 - Decentralized Finance (DeFi) Fraud and Hacks: Part 2

Decentralized Finance Fraud and Hacks Continued

Nirvana Finance

Beanstalk

bZx (Fulcrum)

Compound Finance

Compounder Finance

Alchemix

Introduction to DeFi Bridge Hacks

Multichain (formerly Anyswap)

Wormhole

Qubit Finance

BitMart

Axie Infinity’s Ronin Network

Harmony’s Horizon Bridge

Nomad Bridge

Poly Network

Cream Finance

Wintermute

Summary

 

CHAPTER 8 - Cryptocurrency Hedge Fund Scams and Anti-Money Laundering Violations

Introduction to Crypto Hedge Funds

Anti-money Laundering Compliance

Virtual Asset Service Providers (VASPs)

Robinhood Crypto, LLC

Q3 Trading Club

EmpiresX

Virgil Sigma Fund LP / VQR

Summary

 

CHAPTER 9 – Initial Coin Offerings (ICOs) and Celebrity Token Promotions: Part 1

Introduction to Initial Coin Offerings (ICOs) and Celebrity Promotion

SEC November 2017 ICO Cautionary Warning

T.I. and Flik

Steven Segal and Bitcoiin2Gen

Floyd Mayweather Jr. and DJ Khaled

Kim Kardashian and EthereumMax

Summary

 

CHAPTER 10 – Initial Coin Offerings (ICOs) and Celebrity Token Promotions: Part 2

Initial Coin Offerings (ICOs) and Celebrity Promotion Continued

The Hydrogen Technology Corporation and Hydro

Sparkster

Summary

 

CHAPTER 11 – Additional Case Studies in Cryptocurrency Fraud

Introduction

Titanium Blockchain Infrastructure Services

Barksdale Siblings and Ormeus Coin

Mercenary Gold

CryptoBay VIP and other January 2022 frauds

Outverse

Big Daddy Ape Club

Blockverse

VirSE

Summary

 

CHAPTER 12 - Trends and Future Developments

Introduction

Increased Regulatory Resources To Fight Crypto Fraud

Increasing Focus of Hackers on Crypto Related Espionage

Crypto Increasingly Used to Pay Spies

Jareh Sebastian Dalke

Jonathan and Diane Toebbe

North Korean Espionage

Fake Crypto Job Postings To Gather Intelligence

Helix and Coin Ninja - Crypto Mixer FinCEN Penalty

Tornado Cash and Crypto’s Relations To Sanctions

Summary

 

O autorze

Jason Scharfman is the Managing Partner of Corgentum Consulting, a specialist consulting firm that performs operational due diligence reviews and background investigations of fund managers of all types, including crypto asset managers, direct crypto investments, hedge funds, private equity, real estate, and long-only funds on behalf of institutional investors, including pensions, endowments, foundations, fund of funds, family offices, and high-net-worth individuals. He is recognized as one of the leading experts in the fields of digital asset and cryptocurrency compliance, fund operations and due diligence. 

 

Blurb

Cryptocurrencies and digital assets have continued to gain widespread acceptance from both retail and institutional investors. With this rapid growth in both the crypto and digital asset spaces, there has also been an unfortunate steady drumbeat of fraudulent activity. It has been reported that in 2021 alone over $14 billion in crypto was stolen from investors. Frauds have touched all aspects of the crypto universe ranging from outright Bitcoin theft, pig butchering, and wallet phising to DeFi rug pulls, exchange hacks, mining scams and NFT fraud. The Cryptocurrency and Digital Asset Fraud Casebook will provide up to date information and analysis on fraudulent activity in the crypto space.

Jason Scharfman is the Managing Partner of Corgentum Consulting, a specialist consulting firm that performs operational due diligence reviews and background investigations of fund managers of all types, including crypto asset managers, direct crypto investments, hedge funds, private equity, real estate, and long-only funds on behalf of institutional investors, including pensions, endowments, foundations, fund of funds, family offices, and high-net-worth individuals. He is recognized as one of the leading experts in the fields of digital asset and cryptocurrency compliance, fund operations and due diligence.