In the crypto world as in the real world, there are thieves who want to take advantage of good business to cheat and steal from people. Cryptocurrencies have attracted the attention of many investors and also families to generate potential profits, and it is when fraudulent companies find a way to deceive and scam with their false offers, false profits and thus manage to steal the capital of many investors.

After reading, researching and studying the class of Professor @yohan2on, here is my work on crypto scams.

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1What are Crypto scams?

Cryptographic scams are thefts from people who invested believing in false promises of profits from a fraudulent company, fake wallets, among other forms of scams that thieves use to deceive. There are fraudulent companies that are in charge of stealing the funds that people invested in their fake crypto business proposals.

Since the crypto space provides freedom, many use that freedom to commit misdeeds such as the crime of scamming large sums of money in cryptocurrencies or dollars. There are different types of scams and with the constant renewal of crypto technology, scammers are at the forefront, for this reason if we think about investing we must learn, study and soak ourselves in the subject to identify the scammers, when a company is a possible fraud and not fall into these scams.

The scammers use websites also called phishing sites, they are impostor sites, fake sites. They also use fake applications, email scams, among other ways to carry out their scams.

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Make your research on any Cryptocurrency scam. (Attach a few references to the news surrounding that scam crypto project)

The scam of Africrypt

Africrypt was a cryptocurrency investment firm located in South Africa, it was run by the brothers Raees Cajee and Ameer Cajee, they disappeared and also the funds which were about 69,000 bitcoins, valued at $ 3.6 billion, they deceived investors with the false promise that their capital would have a monthly return of 2% and up to 11% of their investments and in this way attracted people.

Investors received an email from Africrypt stating that the platform had been frozen and shut down due to a hack, and also in the email they told them not to notify the authorities, not to take legal action as it would delay the process of recovering the funds.

It became more suspicious apart from the disappearance, what they said in the mail, and for these reasons the investors decided to denounce and take legal action, they hired lawyers. Hanekom Attorneys, conducted investigations, from the law firm, and thus stated that they had already lost access to the platform seven days before the alleged hacking, this led them to continue investigating and discovered that the funds had been transferred from accounts in South Africa and the wallets of customers, also went through the services of tumblers, is mixed cryptocurrencies with others and thus hide them, and make it virtually impossible to trace transactions and can not discover where the fund came from.
In this article we will be able to observe this news https://www.bloomberg.com/news/articles/2021-06-23/s-african-brothers-vanish-and-so-does-3-6-billion-in-bitcoin

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2.To what extent have Crypto scams affected the Crypto space?

Crypto scams have greatly affected aggressively and negatively the crypto space, because many people both investors and families have lost their funds, savings or capital, which they had hoped to increase by making investments, because of the scams they lost almost everything and many will not be able to invest in good crypto businesses for a long time. Also the scams have generated losses for some platforms.
This has caused scams to increase as many have managed to get free and never be played by the law, and investors will not get their assets back. As scam companies have successfully managed to steal, many platforms have a duty to improve security and asset protection.

The truth is that as investors we must do our research to identify these potential scams and not fall for them. There will always be crooks looking to cheat, and deteriorate decentralization, and this is almost impossible as cryptographic technology is constantly evolving.

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3.Will regulations in Crypto add value to the Crypto space?

As everything has its pros and cons, knowing that the crypto world is decentralized looking for economic freedom and that every citizen can manage their assets, that each platform has the management of cryptocurrencies, unfortunately this space cannot be controlled by governments and this has motivated them to try to implement their regulations to the crypto space. They have tried to prevent the evolution of the crypto space by closing mining farms, in some countries they have implemented laws against cryptocurrencies, it is practically impossible to disappear this space as each time despite its downward trends, it is gaining more strength and constantly evolving.

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Conclusion:

In view that cryptographic scams have emerged and continue to emerge and are currently at the forefront with crypto technology, it is recommended that each person who wishes to invest in cryptographic plans and businesses should be trained although researching and reading online, and watching videos on the forms and types of scams, and how to avoid and identify possible frauds. It is also important to investigate the origin and history of each company, wallet, where we are interested in making an investment.

It is important to know that we should not get involved by the promises of a company without investigating first, without doing an analysis. I want to mention an experience that happened to me months ago with a company in which I was about to invest, because I was presented with a great opportunity to generate many profits with my investment, thanks to a relative who told me that I should not believe in all that and helped me to investigate, and it turned out that one of the founders and director of the company already had a history of a scam he had done years ago. The company supposedly works with specialized traders, it works with a ponzi system pyramid scheme. This shows how important it is not to get carried away by our emotions and to do our research before making an investment.

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Cc: @yohan2on