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Rs. 14 bil crypto fraud

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COLOMBO (News 1st) – The Financial and Commercial Crimes Division of Sri Lanka’s Criminal Investigation Service has arrested three people for committing a large-scale cryptocurrency scam worth around Rs. 14 billion (US$ 37,891,504.00)

Police spokesperson and lawyer SSP Nihal Thalduwa told reporters on Thursday (27) that the scam was perpetrated by a Chinese couple and Sri Lankan Lamahewage Shamal Keerthi Bandara.

A Chinese couple was arrested at Katunayake International Airport and a police spokesman said 8,000 people had been duped by these scammers.

A police spokesperson said Lamahewage Shamal Keerthi Bandara started the conning people since 2020 from an office set up at the Colombo World Trade Centre.

However, he was released on bail after appearing in court, a police spokesman said.

A police spokesperson said three criminals are tricking unsuspecting individuals by promising them big returns on their cryptocurrency investments.

What is cryptocurrency?

Cryptocurrency is a type of digital currency that generally exists only electronically. Cryptocurrency purchases are typically made using a phone, computer, or cryptocurrency ATM. Bitcoin and Ether are famous virtual currencies, but there are various virtual currencies, and new virtual currencies are being born.

How Do People Use Cryptocurrencies?

People use cryptocurrencies for many reasons. Be it for fast payments, avoiding transaction fees charged by traditional banks, or to provide anonymity. Some hold cryptocurrencies as investments in the hope that they will appreciate in value.

How do you get cryptocurrency?

You can buy cryptocurrencies through exchanges, apps, websites, or cryptocurrency ATMs. Some people earn cryptocurrencies through a complex process called “mining.” This requires advanced computer equipment to solve extremely complex math puzzles.

Where and how do you store your cryptocurrencies?

Cryptocurrencies are stored in digital wallets that can be online, on your computer, or on an external hard drive. A digital wallet has a wallet address, which is usually a long string of numbers and letters. If something happens to your wallet or cryptocurrency funds — your online exchange platform goes out of business, you sent your cryptocurrency to the wrong person, you lost your digital wallet password, or your digital wallet was stolen or compromised. Etc. — you may find that no one can intervene to retrieve your funds.

How are cryptocurrencies different from the US dollar?

There are important differences between cryptocurrencies and traditional currencies such as the US dollar because cryptocurrencies only exist online.

Cryptocurrency accounts are not government-backed. Cryptocurrencies held in accounts are not insured by the government, like US dollars deposited into FDIC-insured bank accounts. If something happens to your account or cryptocurrency funds (e.g. the company that provides your wallet storage goes out of business or is hacked), there is no obligation for the government to step in and help you get your money back. .

The value of cryptocurrencies changes constantly. The value of cryptocurrencies can change rapidly, even hourly. And the amount of change can be significant. It depends on many factors including supply and demand. Cryptocurrencies tend to be more volatile than traditional investments such as stocks and bonds. An investment worth thousands of dollars today may only be worth hundreds of dollars tomorrow. Also, if the value goes down, there is no guarantee it will go up again.

Pay with cryptocurrencies?

There are many ways that paying with cryptocurrencies is different from paying with credit cards or other traditional payment methods.

Cryptocurrency payments have no legal protection. Credit and debit cards have legal protection in case something goes wrong. For example, if you need to dispute a purchase, your credit card company has a process for getting your money back. Cryptocurrencies typically have no such protection.

Cryptocurrency payments are usually irreversible. When you pay with cryptocurrency, you can usually get your money back only if the person who paid it refunds it. Know your reputation.

Some information about transactions may be made public. People talk about cryptocurrency trading anonymously. But the truth is not so simple. Cryptocurrency transactions are usually recorded on a public ledger called a “blockchain”.

This is a public list of all cryptocurrency transactions, both payers and receivers. Depending on the blockchain, the information added to the blockchain may include details such as the amount of the transaction and the wallet addresses of the sender and receiver. Transaction and wallet information may be used to identify the persons involved in a particular transaction. Also, if you buy something from a merchant who collects other information about you, such as your shipping address, that information may also be used to identify you later.

How to avoid cryptocurrency scams

Scammers are always finding new ways to steal money using cryptocurrencies. To avoid crypto scams, there are a few things you should know.

Only scammers demand payment in cryptocurrencies. Legitimate businesses do not need to send cryptocurrencies in advance. Not to buy anything, not to protect your money. It’s always a scam.

Only scammers guarantee profits or big returns. Do not trust anyone who promises that you can make quick and easy money in the crypto market.

Don’t mix online dating with investment advice. If someone you met on a dating site or app tells you how to invest in cryptocurrency or asks you to send them cryptocurrency, it is a scam.
find crypto related scams

Scammers use some tried and true fraud tactics, but only now are they demanding payment in cryptocurrencies. is one of the primary methods of getting scammers to buy and transfer money. But scammers also impersonate companies, government agencies, and lovers, among other tactics.

investment scam

Investment scams often start with social media and online dating apps and sites, often promising “no risk” and “making big money”. Of course, these scams can also start with an unexpected text, email, or phone call. Cryptocurrencies can be both an investment and a payment.

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