The U.S. Federal Trade Commission says crypto scams have cost U.S. consumers over $1 billion. A former director of the largest NFT market is accused of insider trading NFT. Technologists sign an open letter to lawmakers on crypto risks. Chipotle now accepts cryptocurrency payments at all US locations. Here’s what happened in crypto over the week.
Consumers have lost over $1 billion to cryptocurrency scams since the start of 2021, FTC says
Since the start of 2021, more than 46,000 Americans have collectively lost over $1 billion to crypto scams, according to analysis released Friday by the U.S. Federal Trade Commission. Of all the money reported lost during this period, roughly one in four dollars was lost to crypto scams.
The analysis cited investment scams as the main reason why so many people lost money. Romance scams involving cryptocurrency affected the second highest number of people, but accounted for a much lower percentage of money lost compared to investment scams.
The median amount lost to cryptocurrency scams since January 2021 was $2,600. The top three cryptocurrencies captured by scammers were bitcoin (70%), tether (10%) and ether (9%).
Former NFT Marketplace Director Charged With NFT Insider Trading
NFT insider trading charges have been brought against a former director of the popular OpenSea NFT market by the Manhattan U.S. Attorney’s Office, according to an announcement Wednesday. This is the first time the Department of Justice has pursued an insider trading case on NFTs.
The suspect was a product manager at OpenSea last year. In his role, the suspect would have known which NFTs would be featured on the market’s homepage. NFTs generally gain value through word of mouth, so if an NFT is published on the homepage of a major NFT marketplace, the increased visibility could increase its value, at least temporarily.
The indictment alleges that the suspect “launched an age-old scheme to commit insider trading by using his knowledge of confidential information to purchase dozens of NFTs before they were featured on the homepage. of OpenSea”.
On Friday, a company spokesperson responded to CNET’s request for comment. “When we learned of Nate’s behavior, we launched an investigation and ultimately asked him to leave the company,” the spokesperson said in a statement. “His behavior was in violation of our employee policies and in direct conflict with our core values and principles.”
Technologists Sign Open Letter to Lawmakers Calling for New Cryptocurrency Laws
A group of 26 academics and technologists on Wednesday signed an open letter to lawmakers calling for new rules to govern blockchain technology and the cryptocurrency industry. Blockchain refers to the record-keeping technology that underpins cryptocurrency and other crypto-related assets.
“Blockchain technologies facilitate little, if any, real-economy uses,” the letter states. “On the other hand, the underlying crypto-assets have been the vehicle for unhealthy and highly volatile speculative investment schemes that are actively promoted to retail investors who may be unable to understand their nature and risk.”
The letter also cites ransomware, scams, money laundering, financial instability, vulnerability to bank runs, and massive climate emissions from proof-of-work technology as ongoing issues with blockchain technology and cryptocurrency. .
Chipotle begins accepting cryptocurrencies in the United States
You can now buy a burrito at Chipotle with bitcoin. The burrito chain has partnered with the Flexa payment platform and now accepts a number of cryptocurrencies including bitcoin, ether and dogecoin as payments through Flexa via app and code QR.
“We are constantly exploring innovation that will improve our customer experience, and that now includes accepting digital currency payments with Flexa at Chipotle’s U.S. restaurants,” Chipotle CTO Curt Garner said in a statement. reported to CNET.
You can use certain cryptocurrencies to purchase items at any Chipotle store in the United States, according to Flexa’s announcement.
Thanks for reading. If you are looking for more,by Daniel Van Boom on the strange history of the Goblintown NFT collection.