London man arrested for fraudulent sale of worthless cryptocurrency.
Cryptocurrency has had a recent surge in popularity, piquing making many people’s interest. To profit from this interest, one man in the UK set up a scam call-center or “boiler room”, selling non-exist ant cryptocurrency to his victims. The police received nine reports of fraud, with a total value of £160,000 ($215,000). Victims stated that they had been called to invest into cryptocurrency and that they were told that the company office was located in Old Broad Street, in the City of London, near the Bank of England. This address made victims believe that the company was legitimate.
After receiving the reports, police arrested the man at his home on suspicion of conspiracy to defraud and money laundering. They also believe the man to be part of a larger group persuading people to invest in cryptocurrency. Police warned that investment fraudsters use aggressive sales tactics to pressurize unsuspecting victims into investing large sums of money. They also urge anyone who is offered investment opportunities over the phone to simply end the call, since legitimate companies will never cold call potential investors.