SEC warns off investment in iBSmartify Nigeria cryptocurrencies

The Security and Exchange Commission (SEC) has warned investors away from dealing with iBSmartify Nigeria cryptocurrency offerings in an effort to clamp down on crypto-related scams and unregulated products. 

For many — especially early investors in Bitcoin (BTC) and Ethereum (ETH) — the cryptocurrency sector is an innovative, interesting marketplace that can provide lucrative returns on the purchase of crypto, acting as an alternative market to traditional financial products. 

However, with every innovation, fraudsters are waiting in the wings to take advantage. As interest in cryptocurrencies climbed, the unregulated space became a Wild West of exit scams, failed cryptocurrencies, and Initial Coin Offerings (ICOs) that provided little or no protection for traders exchanging their hard-won fiat currency for speculative investment in virtual coins. 

See also: Credit card skimmers are now being buried in image file metadata on e-commerce websites

Over the past few years, regulators worldwide have attempted to control the industry by enforcing rules that turn cryptocurrencies into assets and ICOs as investment events, but exit scams, theft, and insider fraud are still rampant. 

In this case, the commission has been made aware of recent activities by iBSmartify Nigeria, the entity responsible for the promotion of crypto based on the iBledger (iBcashcryptocurrency) and InksNation blockchains. 

Inksnation offers the Pinkoin cryptocurrency and claims the InksLedger blockchain can “end poverty in any country in less than 9 months incentivizing goodness, promoting love, unity, oneness, peace and equitable distribution of wealth.” 

According to SEC, the organization itself, as well as the products on offer are not registered or regulated by the commission and are therefore deemed illegal. 

“The general public is hereby warned that any person dealing with the said entity and others in the same business in any manner whatsoever, does so at his/her own risk,” SEC said in a public notice. 

TechRepublic: WWDC 2020 highlights: Gartner analyst discusses App Clips, privacy, and more

SEC added that companies permitted to conduct investment activities in Nigeria can be checked via the commission’s website

While this may be only one illegal offering of many worldwide, it is important to note that warnings of this nature are important in the battle against cryptocurrency-related fraud and loss. 

CNET: Google collects a frightening amount of data about you. You can find and delete it now

According to CipherTrace (.PDF), in comparison to 2018, cryptocurrency investor losses caused by fraud, Ponzi schemes, and misappropriation rose by 533% in only 12 months, reaching $4.5 billion last year. 

Inksnation has not responded to requests for comment at the time of publication.

Previous and related coverage

Have a tip? Get in touch securely via WhatsApp | Signal at +447713 025 499, or over at Keybase: charlie0

Source link

Recent articles

Over 500,000 businesses got PPP loans but are listed as retaining zero jobs, Treasury Department data show

The Paycheck Protection Program was designed to help small business weather the coronavirus pandemic while keeping their workers employed.But government data suggests that...

El Al to slash workforce as part of rescue package agreements | News

Israeli flag-carrier El Al is set to shed 1,700 positions across three divisions as part of a restructuring programme. The airline says it has...

COVID-19 Cybercrime Capitalizing on Brazil’s Government Assistance Program

IBM X-Force Incident Response and Intelligence Services (IRIS) has been tracking cybercrime capitalizing on the coronavirus pandemic since January, and has observed the...

Colin Jost Knows What He Has: ‘A Very Punchable Face’

Though Colin Jost has worked at “Saturday Night Live” for nearly 15 years, it wasn’t until this past spring that he was able...

JK Rowling criticizes ‘cancel culture’ in Harper magazine open letter

"Harry Potter" author J.K. RowlingRob Stothard | Getty ImagesJ.K. Rowling has joined 150 authors and academics in denouncing the so-called "cancel culture," which...

Zimbabwe Health Minister Obediah Moyo sacked amid graft scandal | News

Zimbabwe's President Emmerson Mnangagwa has fired Health Minister Obediah Moyo who has been charged with corruption over illegally awarding a multi-million-dollar contract for...

Leave a reply

Please enter your comment!
Please enter your name here