Over 70 Bitcoin Scams Shut Down By New York Law Enforcement

More than 70 websites promising unrealistically high returns on bitcoin investments have been shut down by the New York County District Attorney’s office.
As originally reported by Bloomberg News, 73 sites were taken offline on 16th January by the office, including BitcoinHYIP.org and others owned by a company called YouYou Finance.
The defendants are accused of securities fraud and intent to commit fraud, as well as larceny charges, according to documents provided to CoinDesk. The investigator explained the background of his investigation into high-yield investment schemes based on bitcoin, as well as how the office went undercover and used the services.
The complaint read:
“Defendant BITCOINHYIP. ORG represented both in its communications with me and on its website that it ‘was [b]acked by a REAL company’ and had a ‘long history.’”

This post was published at Coin Desk on January 27, 2015.

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