Tag: Crypto Scam

Pump and Dump Scam :UK Drug Gang Launches Memecoin to Launder Cash in

A UK-based drug gang has reportedly taken a bold new approach to laundering their illegal earnings—by creating a memecoin and using it for a classic pump and dump scheme.

British Drug Gang Launches Memecoin to Launder Money in Pump and Dump Scheme

According to an investigation reported by the Daily Mail, private investigator Gary Carroll, a drug crime specialist with a law enforcement background, uncovered the operation. The gang allegedly used proceeds from their drug business to hire developers and launch a fake cryptocurrency inspired by the notorious OneCoin scam.

Information Regarding Pump and Dump

Carroll stated that the coin’s value or technology wasn’t the point. The real plan was to drive hype online, lure unsuspecting buyers, and cash out fast. The gang paid to develop the token and then used the remaining funds to buy into it, planning to sell their holdings once the price rose due to social media buzz.

“They’re not interested in the tech. It’s about creating hype, getting people to buy in, and then dumping their supply for clean-looking money,” Carroll explained.

The operation was designed to make the drug money appear legitimate. If the coin price spiked—even briefly—the gang could dump their tokens and walk away with “clean” profits, leaving regular investors holding worthless coins.

This method, known as a pump and dump, is not new in financial scams, but Carroll emphasized that creating a brand-new memecoin for laundering purposes is a bold evolution in criminal tactics.

Historically, criminals have used major cryptocurrencies like Bitcoin for money laundering. However, due to stricter regulations and increased scrutiny, this route has become more difficult. In fact, in 2024, the UK’s National Crime Agency (NCA) cracked down on several international crypto laundering networks, including Moscow-based operations Smart and TGR.

This case highlights a growing trend where organized crime intersects with emerging technologies, pushing law enforcement to keep pace with increasingly creative financial crimes. This method of pump and dump has been done several times by influencers as well as celebrities and now criminals have also started using such method which is a sign for potential danger.

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Brazil Sentences Braiscompany Crypto Scam Team to Over 170 Years in Prison

Three key figures behind one of Brazil’s largest crypto scams have been sentenced to a combined 170+ years in prison for their roles in the fraudulent Braiscompany operation. The group tricked around 20,000 investors out of roughly R$1.11 billion (US$190 million) by promising high returns from crypto investments that never existed.

Court Gives Harsh Sentences After One of Brazil’s Biggest Crypto Scam

X post regarding the Scam

The main figure, Joel Ferreira de Souza, received 128 years, 5 months, and 28 days in prison for leading the fake investment scheme. He ran shell companies and moved funds through secret crypto wallets in an attempt to launder the money. Judge Vinicius Costa Vidor said the group “acted to disguise the illicit origin” of their operations.

Others convicted include:

  • Gesana Rayane Silva – sentenced to 27 years, 10 months, and 10 days for managing money flow and deals.
  • Victor Augusto Veronez de Souza – sentenced to 15 years for helping with illegal transactions. He is also Joel’s son.

The court found the defendants guilty of running a pyramid scheme that was disguised as a legitimate crypto business. The company looked professional on the outside, but it was built only to benefit the insiders.

Authorities have seized R$36 million in funds linked to the scam, but it’s unclear how much will be returned to victims. Victims’ lawyer Artêmio Picanço urged quick civil action:

“People have to file civil claims soon before the state takes the money.”

Two other people accused were acquitted due to lack of evidence.

This case follows the earlier arrest and extradition of Braiscompany founder Antonio Inacio Da Silva Neto and his partner Fabricia Farias Campos, who were captured in Argentina and brought back to Brazil.

  • Da Silva Neto is serving 88 years.
  • Campos received 61 years and 11 months.

The case highlights Brazil’s growing crackdown on crypto fraud and its efforts to hold perpetrators accountable.

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Spotting the Scam: Fake Celebrity Memecoins on the Rise

Trump’s $TRUMP and $MELANIA memecoins sparked hype, but scammers faked celeb coins, duping investors in the volatile crypto game.



47th U.S. President Donald Trump and First Lady Melania Trump sent shockwaves in the crypto world with their memecoins, $TRUMP and $MELANIA, respectively. Coming right before Trump’s inaugural ceremony, $TRUMP went berserk on Solana, reaching a market capitalization of $12 billion in 24 hours. Melania followed suit with her own token, but the hype didn’t stop there-it turned into a playground for scammers.

Then, scam coins like $IVANKA and $BARRON began to pop up targeting Trump’s family. Ivanka had to jump onto X, formerly Twitter, to deny involvement with the $IVANKA coin. Barron’s fake token reached a value of 460M and then crashed by 95% to leave investors burnt. These scammers even hijacked poor Dean Norris-the actor that plays Hank in Breaking Bad-with some fake posts endorsing a $DEAN coin. Later, Norris went full Schrader-mode, calling out critics and confirming it was all fake.

Of course, no scam list is complete without Elon Musk. Fake memecoins using his name are everywhere, and Musk’s silence isn’t helping.

Memecoins are pure hype with no real value, but people can’t resist the gamble. Bottom line? Do your research or risk getting wrecked in the wild west of crypto.

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Hyderabad Woman Scammed Out of ₹77 Lakhs in Crypto Hustle

Summary: A woman from Hyderabad lost ₹77 lakhs, INR 7.7 million, to a fraudulent crypto scheme that seemed like a legitimate investment. The scammers hooked her with small returns, after which they withheld her “profits” and demanded more money.

Crypto scams are getting out of hand, and a 42-year-old woman from Hyderabad is the latest victim. The woman, lured by a Telegram gig in December 2024, started by completing simple tasks like liking YouTube videos and got ₹123 for each. It felt easy and legit—she even earned ₹22,000 over a month.

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The scammers, operating as “Digit Trade Private Ltd,” later hyped a VIP program for crypto investments, promising profits and even covering her losses. Sounds too good, right? That’s because it was. They showed her fake profits in a virtual account but blocked withdrawals, making her cough up more cash for “taxes” and “authorization.”

At one point, she was dropping ₹15 lakhs in a single day, convinced she’d hit the jackpot. But when withdrawals didn’t work and they kept asking for more, the penny dropped—she was scammed. By then, she’d lost her family savings.

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Police are investigating, but here’s the takeaway: stick to legit platforms, and if something feels too good to be true, it probably is.Hyderabad Woman Scammed Out of ₹77 Lakhs in Crypto

Hawk Tuah Girl Finally Speaks Out on $HAWK Token Drama

Summary: Hailey Welch who’s widely and by widely I mean worldwide known as “Hwak Tuah Girl” has finally spoken after the $HAWK token scandal left investors fuming. The token, hyped up by Welch’s massive fanbase, crashed hard minutes after launch, sparking a class-action lawsuit. Investors accuse the project’s team of pulling a classic “rug pull,” leaving them with empty wallets and shattered trust. Welch, though not officially named in the lawsuit, took to Twitter to clear the air and address her fans.

What Went Down?

$HAWK launched on December 4 with a bang, skyrocketing to a $490 million market cap, thanks to the buzz from Welch’s loyal followers. But the hype didn’t last just 20 minutes in, the token tanked to $41 million. Holders claim the creators dumped a huge chunk of the coin, sending its value into a free fall.

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The lawsuit targets the Tuah The Moon Foundation, OverHere Ltd., and Alex Larson Schultz, one of the token’s big promoters. It alleges that $HAWK was sold as an unregistered security and claims the team used Welch’s clout to bait investors into a financial trap.

Welch’s Side of the Story

Addressing the controversy, Welch tweeted: “This is serious, and I want to say sorry to anyone affected. I’m working with legal teams to figure this out and make things right.” She also told investors to hit up the law firms handling the case for help.

The Bigger Picture

The $HAWK presale raised $2.8 million, but when the token went live, things spiraled fast. Welch’s spokesperson said she had zero control over the project, adding, “She just got a sponsorship fee and wasn’t involved in running the coin.”

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This whole mess is a wake-up call for anyone jumping into celeb-backed crypto projects. It’s a reminder that just because your fave is hyping it doesn’t mean it’s a solid bet.

Nigeria cracks down on crypto romance scams, arrests nearly 800 scammers

Summary: Nigeria’s anti-graft agency busted a massive crypto scam operation in Lagos, arresting 792 suspects. The scammers used fake online romances to trick people into shady crypto “investments” and steal their cash.

A Hub of Crypto Heartbreaks

In what sounds like something straight out of a movie, Nigerian authorities raided a building in Victoria Island, Lagos, where nearly 800 scammers ran what’s called *crypto romance scams*. Their playbook? Pretend to fall in love with victims online, gain their trust, and then pressure them into “investing” in fake crypto projects. Once the cash rolled in, these scammers ghosted faster than a bad Tinder match.

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Global Targets, Sneaky Tactics

These scammers primarily targeted Americans, Canadians, Europeans, and even some Mexicans, luring them via WhatsApp, Instagram, and Telegram. The hustle started small, with victims paying “activation fees” as low as $35 to set up fake accounts. The raid revealed just how international this operation was 148 Chinese nationals, 40 Filipinos, and individuals from Kazakhstan, Pakistan, and Indonesia were caught.

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Seized Devices and Organized Crime Links

Wilson Uwujaren, spokesperson for Nigeria’s Economic and Financial Crimes Commission, confirmed that phones, laptops, and cars were seized. Authorities are now teaming up with international agencies to dig deeper into potential ties to organized crime. Stay alert love and crypto don’t always mix well.

Fake Uber Driver Busted for Swiping $300K in Crypto

Summary: A man from Arizona did something unforgivable as he disguised himself as an ordinary Uber driver but behind that mask he was a filthy thief who got caught red-handed after stealing over whopping $300,000 in crypto from unsuspecting innocent passengers.

Crypto Heist on Wheels

Scottsdale Police have arrested Nuruhussein Hussein, who’s now facing serious felony charges for theft, fraud, and money laundering. According to reports, he’d fake being an Uber driver, pick up victims, and casually ask to “check directions” or “connect the Uber app” on their phones. While the unsuspecting passengers handed him their devices, he’d quickly access their crypto wallets, swipe private keys, and transfer funds straight to his own account.

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High-Tech Trickery, Big-Time Losses

Hussein didn’t just stop at simple swipes he used advanced techniques to move the stolen crypto to untraceable wallets. Most victims didn’t even realize their money was gone until it was far too late. By the time they sobered up or checked their balances, the digital cash was long out of reach.

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Facing the Music

The scammer is now behind bars in Maricopa County Jail, and both police and the Secret Service are on his case. Hussein faces multiple charges of theft, fraud, and money laundering, with a court bond hearing set for December 18. Let this be a PSA: hold onto your phones, especially after a night out.

15 Charged in U.S. for Laundering Drug Cartels’ Cash via Cryptocurrency.

Summary: 15 individuals which included 9 defendants and 6 associates face charges in the great state Florida for allegedly laundering drug money from neighboring developing cartels such as Mexico and Colombia into cryptocurrency. This scandal continued for almost 3 long years starting from 2020 to mid-2023 and the individuals where involved in bulk cash pickups and crypto transactions.

Sophisticated Money Laundering Scheme

The accused individuals allegedly collected drug proceeds from cities of United States and converted them into cryptocurrency. Then these digital money or assets were transferred to the wallets of the big evil conspirators, it doesn’t end here as the transferred digital asset was again converted back into cash and then transferred to cartel leaders in Mexico and Colombia.

Key Figures and Roles

Court documents and files suggest Nilson Sneyder Vasquez Duarte as a primary criminal and the one who coordinated the scheme. He and his co-conspirators allegedly helped during the deliveries to black-market crypto exchangers, which for sure included Hernan Horacio Richard Samper and Maria Eugenia Landeros Rosas. Not only there but there are several other individuals also served as a medium to physically transporting cash between U.S. cities.

Charges and Penalties

Accused individuals are facing charges for conspiracy to commit money laundering and operating an illegal money transfer business. This doesn’t end the charge for some as seven individuals which includes Duarte and Landeros, face even more additional count of substantive money laundering.

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Nepal Warns Citizens Amid Rising Crypto Scam Cases

In short, Nepal’s FIU warns about rising crypto scams despite the trading ban. The ban didn’t stop criminals as they have been actively using crypto for money laundering and some fake investment schemes trap locals using social media. Plus, fear of reporting such issues worsens the issue even further, with 64% of fraud being cyber-related. But they are making progress as just recently FIU is calling for stricter monitoring, better training, and updated fraud laws.

Financial Intelligence Unit (FIU), a branch of Nepal Rastrya Bank that generally deals with monitoring and analyzing financial transactions to combat financial crimes has raised several alarms over the growing use of cryptocurrencies in cybercrimes. Firstly, trading on any crypto related token is completely banned in Nepal yet such trading is done in money laundering and other financial crime so this case goes deeper than regular crypto related crimes.

FIU Warns of Rising Crypto Fraud in Nepal

On a “Strategic Analysis Report” reported on November 18, FIU gave especial focus on increase in criminals using crypto to launder illicit funds. These fraudsters convert their illegal earnings into crypto tokens which makes it very difficult for authorities to trace and recover the money. Blockchain is supposed to be safe and not be untraceable but in its banned nationwide. Plus their ability to transfer cryptocurrency to offshore accounts seamlessly further complicates matters.

Fraudsters using crypto to lure in victims is increasing a lot lately, they run their business by running  investment schemes targeting citizens through social media and online ads. These schemes are generally eye catching and promise high returns, drawing unsuspecting victims. Plus the illegality of crypto trading makes reporting such acts publicly embarrassing for the government which has led to suppressing the news and as a result, has created even more victims.

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FIU Proposes Tighter Crypto Monitoring to Fight Fraud

FIU is pushing for tougher crypto transaction monitoring and better training for banks to spot any ongoing suspicious activity. They’re also calling for stronger teamwork between agencies and updated fraud laws. Nepal has shared its concerns globally, with South Korea even set to require businesses to report cross-border crypto transactions to the Bank of Korea.

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Crypto Launderer Pleads Guilty in $73M Scam, Faces Major Sentencing

In brief, A Chinese-American dual citizen, Daren Li, admitted his crime in California federal court on Nov. 11 for laundering proceeds from a $73 million crypto scam. He admitted to his role of being included in directing shell company accounts to hide the origins of stolen funds from unsuspecting investors.

Scheme Specifics and Cash Flow

Daren Li acknowledged that, between August 2021 and April 2024, he defrauded victims of millions of dollars by operating a cryptocurrency investment scam that included pig butchering. In order to launder the money, Li used to advise others to open bank accounts in the United States using shell corporations. The money was thereafter converted to Tether (USDT) and transferred to digital wallets under the control of the powerful individuals.. As per the court details, a single walled linked to the scam had received over $340 million which is just an absurd amount to even think of. Further more the filing said.

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Authorities Take Action

After being arrested at Atlanta airport in April, Li alongside his co-worker Yicheng Zhang, who was detained in Los Angeles were charged in May. Authorities noted that $73.6 million went swiftly and directly into accounts linked to the scheme, while $59.8 million flowed through U.S. shell companies created to further disguise the assets.

Upcoming Sentencing and Financial Penalties

Li’s sentencing has been scheduled for March 3, 2025 where he potentially faces upto 20 years in jail including about three years of supervised release and $500,000 fine. This doesn’t end the punishment because he may also be ordered to pay victims the amount they were scammed off which amounts to about $4.5 million and $73 million.

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