Hollywood producer scammed crypto investors

There has been an increase in scams involving the crypto segment in recent months. In a similar case, Hollywood producer Ryan Felton defrauded crypto investors to meet his rising expenses. Felton, who has been involved in some big film projects, is reported to have received about 2.5 million dollars from the scam. The scam was done through two initial coin offerings (ICOs). One was for a streaming platform called ‘FLiK’ and the other for crypto exchange CoinSpark.

The promotion for the streaming platform FLiK claimed that it would surpass Netflix. In CoinSpark’s ICO, investors were told that 25 percent of the exchange’s profits would be given as dividends. Investors took interest in both these ICOs but only Felton got the returns from them. Felton was charged with money laundering and fraud. The US Department of Justice (DoJ) said the investors’ money was used to buy expensive apartments and cars. This case indicates the risk associated with crypto projects.

Cases of scammers showing the charm of romance to less-informed crypto investors are on the rise in the US. Most of the victims in such cases are in the age group of 20-40 years. In this regard, a report by BanklessTimes was told that crypto investors in the US have lost about $ 185 million in such cases from the beginning of last year to March this year. In addition, these investors have lost more than $1 billion in other fraud cases.

BanklessTimes CEO Jonathan Merry said, “Investors are at a disadvantage when it comes to romance. Their quest for romance makes them a target for fraudsters. This attraction is such that it makes a lot of people fall prey to it.” and they suffer great loss till they come to know the reality.” Last year, Sophos cybersecurity researchers identified a bitcoin wallet worth approximately $1.4 million. These bitcoins were collected from people fraudulently on popular dating apps.

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