Five Charged In Alleged Crypto Ponzi Scheme | PYMNTS.com
The operators of a purported international digital currency “ponzi scheme” and a lawyer are facing charges of money laundering and fraud, the United States Attorney’s Office for the Southern District of New York said in a press release.
The individuals were charged for their participation in a group “involved in defrauding individuals through investments in AirBit Club, a purported cryptocurrency mining and trading company,” the release stated. Victims received access to a portal to show supposed returns when they invested, but the depictions were reportedly not true.
“No Bitcoin mining or trading on behalf of Victims in fact took place,” the office claims in the release.
In other news, The KuCoin Group warned users about a website that is purportedly harnessing the KuCoin trademark to request that users move digital assets to certain addresses through “false incentive activity,” according to an announcement.
The organization said users should be “extra careful to avoid this type of scam.” In the announcement, the organization listed the “fraudulent” website and said that anyone who sent digital assets to the address the website disclosed should reach out to the authorities.
Meanwhile, Russian financial institution Expobank has purportedly made the inaugural digital currency-backed loan in the nation, Cointelegraph reported.
The bank reportedly extended the credit by making a Waves token-fueled bank loan. The debt was reportedly provided to a businessperson who is not intending to market the digital tokens. The founder and CEO of Waves indicated on social media that the loan harnessed the digital currency for collateral.
And Colibra, a Bulgarian startup, is letting flyers choose to receive payments for delayed flights through bitcoin, Cointelegraph reported.
Air carriers in the European Union have to pay travelers for postponements of at least three hours that are the fault of the carrier, but the service seeks compensation for travelers for those that are able to receive it, according to the report. It then provides compensation to all travelers who face postponements of at least an hour. The service has let flyers get payment through fiat currency since it started in June of last year.
NEW PYMNTS REPORT: THE FI’S GUIDE TO MODERNIZING DIGITAL PAYMENTS
Instant payouts have become the name of the game for vendors and suppliers facing crumbling revenue streams, but banks can find themselves struggling to facilitate faster B2B payments. In this month’s The FI’s Guide to Modernizing Digital Payments, PYMNTS talks to Vikram Dewan, Deutsche Bank’s chief information officer, about how regulatory compliance complicates payments digitization — and why change must begin with shifting away from paper.