It is reported that about 700 French citizens have encounterd approximately €31 million Lost in the Bitcoin Scam. The loss incurred was during the time when Bitcoin and other cryptocurrencies were high on trading markets.

Initial proceedings :

According to stock market regulators of France, Autorité des marchés Financiers, people were being lured into the scam since the beginning of this year.

Firstly, investors were cajoled into the scheme through the use of inticing advertisements related to Bitcoin investment. Through this avenue, information was collected by the scam artists. Details such as phone numbers, names etc, of the investors were extracted and utilised.

Secondly, the scammers beguiled money from investors bank accounts by convincing them that they would invest them in Bitcoin and by offering hoax investment plans. They further extracted money from investors by selling false investment opportunities.

A lawyer specializing in Heritage issues, Helene Feron-Poloni said:

Bitcoin is very complex to understand, very technical. Investors do not necessarily understand what is happening but simply say: this time, I do not miss the opportunity to earn money.”

The Marketing Director for Coinhouse, a cryptocurrency asset investment firm, Brian O’Hagan stated that “they have discovered over 200 fraudulent portals, which are used to lure investors into investing in the scam.”

Reports suggest that France isn’t the only country to have Bitcoin scammers. Another country that faced similar problems is Belgium. They estimate fraudulent activity of  €100 million mark in relation to cryptocurrency extortion schemes.

Conclusion:

€30 Million Lost In Bitcoin Scam. The French government is coming forward to aid support to its country cryptocurrency users. They have set up a regulatory framework for Initial Coin Offerings [ICOs]. Users must now partake in an AMF (anti-money laundering) registration mandatory for cryptocurrency exchanges and cryptographic key custodians in an attempt to introduce a regulatory and security framework.

 

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