Home / Crypto Currency / Physical Letter-Based Bitcoin Scam Shows Criminals Are Getting a Lot Bolder

Physical Letter-Based Bitcoin Scam Shows Criminals Are Getting a Lot Bolder

Scams are nothing new in the world of cryptocurrency. Some of these ventures prove to be very professional and elaborate, whereas others are clearly low-effort projects. It seems a new scam is making the rounds through a physical letter, which threatens to expose people’s bad behavior unless they cough up a lot of money in the form of Bitcoin. It even comes with its own guide on how to buy Bitcoin, which is pretty interesting.

Bitcoin Scams Take Physical Form

We have seen dozens of different Bitcoin-related scam attempts in the past few years. Some of these projects clearly display a degree of professionalism one would never hope to see, whereas others are so fake they can easily be ignored. In the case of this particular Bitcoin-related scam making the rounds, it is evident things sort of fall in between the two camps.

To put this scam into perspective, it revolves around a physical letter which is effectively sent to potential victims. In the letter, the scammer tries to persuade the recipient to fork over a hefty sum of money in the form of Bitcoin. While such demands are not uncommon whatsoever, the way this particular scammer goes about things is rather intriguing.

That doesn’t necessarily mean this scam will be rather successful, but it has become evident some people may effectively be threatened by the information in this letter. It seems the scammer claims to have “evidence’ of what the recipient of the letter is hiding. Although nothing is explained in the letter itself, the scammer makes it clear its victim knows what this is all about.

The recipient of this letter is presented with two different options. Either the recipient ignores the warning, or they pay the sum of $8,600 in Bitcoin. It is possible the amount asked for will differ from letter to letter, although it seems the scammers are trying to collect around one Bitcoin from all of its victims. Whether or not that will be successful, remains to be determined.

What makes the letter even more intriguing is how it includes clear instruction on how to buy bitcoin. It does not refer to popular exchanges, yet it is effectively telling the victim to visit LocalBitcoins as a way to purchase Bitcoin and complete the transaction. The choice for LocalBitcoins is pretty interesting, although it also makes a lot of sense because of its global availability

Whether or not we will see more of these letters show up, remains to be seen. It is unclear how the victims are targeted, although it seems the scammers are either active in one specific area, or have found a way to obtain a lot of people’s address information. Given the rise of social media and data breaches, it is only normal a lot of this information becomes easier to come by.

Read more

Check Also

Institutional Investor: Crypto Will be Worth Trillions, Launches Hedge Fund

After leaving his position as an executive at Steven Cohen’s Point72 hedge fund, Travis Kling decided to start his own crypto-focused fund. This was a big and bullish announcement back then, but it still wasn’t enough to save the crypto market, which crashed only a month later. The following nine months were almost completely ruled by the bears, which has brought a lot of damage to the crypto world. Still, according to new reports, Kling has never given up on this project, and it seems that he will finally be ready to launch the new hedge fund over the next month. The dates have not been set yet, and it is possible that the fund’s launch will be as soon as in about two weeks. Former Point72 Manager Plans the Launch of His Own Crypto Fund The fund has been expected for a long time now, and according to what is known, it will be based in Delaware. Some reports even managed to find out that the name of the fund will supposedly be “Ikigai”. While nobody known for sure when the fund’s launch is actually going to be, it is known that it will happen in October. At first, the fund will be backed by a certain amount of capital that Kling’s unnamed partners have invested. However, later down the line, after the project starts its development properly, Kling plans to search for additional investors. Additionally, he will also add $15 million on November 1st, according to the reports. Eventually, by the time the mid-2019 arrives, Kling hopes that the fund will grow and expand to around $100 million. He even expects Ikigai’s venture branch to rise to $33M in capital invested. As for the foreign investors interested in the fund, they will be capable of allocating capital through investment vehicle based on the Cayman Islands. A Multi-Trillion Asset Class? During one of his recent interviews, Kling stated that he truly believes in the project, as well as the concept, and those willing to back it. This, more than anything, indicates that the project is more than just an attempt to generate large profits. Kling stated that he expects this to become a multi-trillion asset class that will expand to touch everyday life. He stated in an interview: It’s still very early, but the development and growth of this technology will be exponential. The firm will have a 13-person team that is said to be located in Los Angeles, while the fund will seemingly follow the regulations implemented by the Delaware government. Many believe that Ikigai’s launch will come on October 1st and that most of the allocated capital will remain in cash, at least at first. This is due to the fact that the investors are still trying to find a secure way into the crypto world. The post Institutional Investor: Crypto Will be Worth Trillions, Launches Hedge Fund appeared first on NewsBTC.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.