Fraud risk associated with cryptocurrencies
| Type of fraud | Description |
|---|---|
| Financial crimes | Use of cryptocurrencies as a vessel for illegal activities such as terrorism financing and money-laundering |
| Scam ICOs | Fabrication of initial coin offerings with elaborate structures (e.g. fraudulent white papers) |
| Pump and dump | Artificial boost of prices for cryptocurrencies through misleading, fraudulent and exaggerated positive statements before selling the owned stocks |
| Market manipulation | Improper interventions in the markets where cryptocurrencies or related derivative products are traded |
| Ponzi schemes | Purported investments in emerging crypto markets using fraudulent schemes |
| Broker-Dealer fraud | Violation of the broker-fiduciary duty by putting own financial gains ahead of the customers |
| Outright theft | Hacking of investors’ crypto-wallets for the purpose of stealing cryptocurrencies |
| Churning | Setting up churning accounts to generate additional commissions and fees as well as to misappropriate funds |
| Type of fraud | Description |
|---|---|
| Financial crimes | Use of cryptocurrencies as a vessel for illegal activities such as terrorism financing and money-laundering |
| Scam ICOs | Fabrication of initial coin offerings with elaborate structures (e.g. fraudulent white papers) |
| Pump and dump | Artificial boost of prices for cryptocurrencies through misleading, fraudulent and exaggerated positive statements before selling the owned stocks |
| Market manipulation | Improper interventions in the markets where cryptocurrencies or related derivative products are traded |
| Ponzi schemes | Purported investments in emerging crypto markets using fraudulent schemes |
| Broker-Dealer fraud | Violation of the broker-fiduciary duty by putting own financial gains ahead of the customers |
| Outright theft | Hacking of investors’ crypto-wallets for the purpose of stealing cryptocurrencies |
| Churning | Setting up churning accounts to generate additional commissions and fees as well as to misappropriate funds |
Sharing content requires targeting cookies to be enabled. Please update your cookie preferences to use this feature.