An email advertising a new coin that will make us wealthy has been sent to us. The email’s link leads to a MyShopify page and a positive article on Yuan Coin, a cryptocurrency developed by YuanPay Group that is authorised by the government. That’s bullshit, indeed! From there, we are directed to the fake campaign’s website, the YuanPay Group website (https://digitalsouce.com/yuanpayapp_de). After registering, we are sent to the payment page of several fraudulent companies, including AGKapital (www.agkapital.com), HashTrade (www.hashtrade.io), and algofgain (www.algofgain.com). The Chinese Yuan Coin does not exist.
Our study has already made us aware of the HashTrade fraud (www.hashtrade.io) and has exposed both them and the payment processors that enable them. Nonetheless, a new illicit payment processor has been incorporated into the fraud. Potential victims should deposit their future loss into this Lithuanian Dilomita UAB’s bank account with The Currency Cloud Limited (www.currencycloud.com). To rename these illegal gains and launder the stolen money, they use fictitious invoices (seen on the left).
According to its website, www.dimolita.tech, the business offers IT services. In actuality, though, we have found yet another illicit Lithuanian payment processor—Dilomita (companies register)—that uses false invoices to launder money for con artists.
We have found up to 14 supporting payment processors in the algofgain (www.algofgain.com) scam. They include well-known names like iPayTotal and more recent ones like Turkish RHGPARTNERS (www.rhgpartners.com) and Estonian bitngo (www.bingo.com). As a result, we shall go over the algofgain in a different examination.
YuanPay Group has been using fictitious news items with a celebrity from New Zealand to promote their trading services in Chinese digital Yuan. Furthermore, trade of the digital yuan product is not permitted.
The Financial Service Providers Register does not list any of the aforementioned YuanPay Group companies. In New Zealand, they are not allowed to offer financial services or products.
Cryptocurrency: What Is It?
A cryptocurrency is a kind of digital or virtual money that is protected by cryptography and is very difficult to fake or spend twice. The majority of cryptocurrencies are stored on decentralised networks that employ blockchain technology, which is a distributed ledger maintained by many computer networks.
The fact that cryptocurrencies are typically not issued by a single entity makes them theoretically resistant to manipulation or intervention by the government.
- A digital asset built on a network dispersed among numerous computers is called a cryptocurrency. They are able to survive without being governed by governments or other central authority because of their decentralised structure.
- According to some analysts, the legal and financial sectors will be among many others that are disrupted by blockchain technology.
- The benefits of cryptocurrencies include decentralised systems that don’t crash at a single point of failure, as well as quicker and less expensive money transfers.
- The price volatility, high energy consumption for mining, and usage in illicit activities are among the drawbacks of cryptocurrencies.
Benefits and Drawbacks of Digital Currency
The goal of the introduction of cryptocurrencies was to transform the financial system. But as with any revolution, there are costs and benefits. The theoretical ideal of a decentralised system with cryptocurrencies and its actual execution differ greatly at this point in the development of cryptocurrencies.
- Eliminates single points of failure.
- Easier for parties to move money between them
- Eliminates third parties
- Able to produce returns
- Transfers of funds are expedited.
- Pseudonymous transactions are made.
- Pseudonymity permits illicit activities.
- have grown incredibly centralised
- costly to join a network and make money from
- Off-chain security problems
- Prices fluctuate a lot.
The Final Word
Cryptography protects digital assets, which are known as cryptocurrencies. They are very speculative because they are a relatively new technology, therefore it’s crucial to know the dangers before making an investment.