The Crown Prosecution Service, based in the U.K., is planning to step up prosecutions linked to crypto-currency fraud. The CPS has received the task of deciding whether suspects should get charged and the cases prosecuted in court.
Crown Prosecution Service Director of Public Prosecutions Max Hill reportedly said that several decades have passed as schemes gain high investment returns. The numbers, he said, might grow as to his prediction despite them being low at the moment.
Crypto-Related Fraud in Detail
For several years there was evidence of a breeding ground for scammers in the cryptocurrency sector. Research published last year by academics at the Technology University of Sydney and the School of Economics in Riga has found that crypto-market boiler scams have been rampant, generating millions of dollars of uncertain trading volume every month.
Action Fraud, a British national fraud monitoring operation, estimated that cryptocurrency scams in the 2020 calendar amounted to 5581 — a rise of 57% over the previous year, reports the Financial Times. There was an estimated $156 million losses in crypto-monetary scams.
The paper also stated in January 2021, 720 fraud cases were crypto related– double that of January 2020. In March 2021, U.K. Finance revealed that customers unintentionally sent money to fraud offenders amounted to nearly $700,000. The financial transactions in 2020 were said to be the U.K. banking industry trading party.
Researchers find 355 price manipulative events over only seven months within multiple cryptocurrency exchanges. Three hundred fifty million dollars (267 million pounds) of suspicious trade was related to ‘pump and dump’ scams estimated to have been worth 6 million dollars for organizers.
The article concluded that the degree of cryptocurrency price manipulation is unmatched in modern markets.
The Surge of Crypto Prices Might Have Increased Crypto-Related Crimes
In the report, the price spike for high-profile cryptocurrencies such as bitcoin was one reason for the growth in cryptocurrency-related crimes.
It also said that the temptation of trying to pay anonymously through Bitcoin seemed to have fuelled such crimes, such as a farmer convicted of contaminated baby food pots in August 2020, and then choked the food chain and demanded a cryptocurrency payment as the article added that.
The government will also respond to these crimes by opening a court in London to prosecute suspected financial crimes.
In addition to conventional fraud forms, crypto has become a preferred form of payment of ransomware purveyors. The head of the U.S. Homeland Security Ministry said last week that fighting ransomware attacks was one of the top cybercrime priorities.
The FCA has also been watching out for crypto scams in recent months. The regulator even issued a warning that crypto investors should be prepared to lose all their money if they chose to invest in crypto products with apparent high returns.