Istanbul police last night busted a Chinese gang for kidnapping workers and forcing them to run a crypto scam.

Local news agency Demirören Haber Ajansı reported that the outfit, which labeled itself as a “crypto investment consultancy”, hired 101 people to join them for a finance gig in Istanbul.

Authorities allege that the gang trapped the employees in villas within the city and set them to work conning Chinese investors out of their crypto.

The assembled crew included four Kazakhs, two Turkmens, and 95 Chinese nationals, according to another news agency, Anadolu Ajansı. All were allegedly held against their will by the 18 leaders of the operation.

Police exposed the operation after two Chinese captives, Hongwu Z. (29) and Kang W. (28), secretly contacted the Chinese Consulate, which then alerted the local police, reported the news agency.

Following the alert, police arrested six gang leaders and sent the rest of the employees to the local immigration authorities. The raid involved 100 police officers, a video from Demirören shows.

Turkish police seized about $200k worth of cash in foreign currencies, 712 cell phones, 112 computers, 677 sim cards, and an undisclosed number of hard disk drives and banknote counters.

The suspected scheme operated from nine villas, each housed in complexes sealed off from the outside.

The leaders of the operation, which allegedly took away the passports of the workers who entered the country on tourist visas, never allowed their employees to step outside of the complexes.

The suspected captives were paid generously for the scam, earning $1,000 a month for their work. That’s well above the Turkish minimum wage of $375 per month and the monthly minimum wage of $380 in Shanghai, the Chinese region with the highest minimum wage.

It is not clear why the gang chose to be based out of Istanbul.

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Cornell Tech researchers reviewed more than 130,000 YouTube channels, and, in a study published today, recommended that the platform work with other services to identify and demonetize bad actors. Those bad actors can easily direct payments elsewhere, and while YouTube can't ban users from making money on other platforms, the company can partner with other platforms.

On one of the accounts flagged by researchers, a channel called Turd Flinging Monkey (bear with me here), the first dozen videos have been flagged as inappropriate. By YouTube standards, that account could be demonetized for posting problematic content. But it doesn’t matter what YouTube does, because that creator is making money elsewhere.

The account includes links to its BitChute profile, Patreon account, Discord username and a number of other platforms, some of which allow the creator to get paid. On Patreon alone, the account is making anywhere from $900 to $4,000 per month. So even if YouTube demonetizes the problematic videos, the creator is still able to share that content and earn a living from other services.

“In general, alternative monetization is a good thing,” Cornell Tech researcher Yiqing Hua told Protocol. “But if YouTube really wants this demonetization policy to work, it should collaborate with the other alternative monetization service providers.”

Over the years, more creators have begun directing users to platforms outside of YouTube. The Cornell Tech study found that about 61% of channels use at least one form of alternative monetization, compared to just 20% in 2018 and 2.7% in 2008. The more popular the channel, the more often creators tend to provide subscribers with a link to alternative payment methods.

But researchers found that the use of external payment methods is more prevalent among problematic content creators who risk being unable to make ad revenue off YouTube. For example, alt-right and men's rights activist channels advertised monetization links more frequently and tended to use a wide range of platforms to monetize.

Hua said these creators would explicitly tell their audience they can’t make money on YouTube, sometimes because of censorship. “And then they would say to their audience, “If you want to see more of this content, you should support me through these things,’” she said.

Many asked for donations through crypto and payment services like Patreon and PayPal. That simple request works: On Patreon alone, at least a dozen problematic channels made more than $100,000, according to the study.

Hua said that instead of restricting the ability to make money off YouTube, the platform could create a database of users who have been demonetized and share it with Patreon and others. That way, platforms can help each other identify bad actors and use their own respective policies to respond.

“Other platforms have different policies, and they have their own process to make these decisions,” Hua said. “But reporting these [users] is going to be very useful because they can notice the problem and focus on the problem.”

TL;DR

There are several cryptocurrency scams in the blockchain space. Some of the most common include blackmail, fake exchanges, fake giveaways, social media phishing, copy-and-paste malware, phishing emails, Ponzi and pyramid schemes, and ransomware. 

Let's briefly discuss each of them so you can learn how to avoid the most common Bitcoin scams and keep your cryptocurrency holdings safe and sound.

As long as new technology is introduced into the world, fraudsters will continue to search for a place to thrive. Unfortunately, Bitcoin gives cryptocurrency scammers an interesting opportunity as it's a borderless digital currency.

Bitcoin's decentralized nature allows you to be in full control of your investments. However, it also makes it harder to delineate a proper regulatory and law enforcement framework. If scammers manage to trick you into making mistakes while using Bitcoin, they may end up stealing your BTC, and there is virtually nothing you can do to recover your crypto.

That said, it's crucial to understand how scammers work and learn how to identify potential red flags. There are plenty of Bitcoin scams to look out for, but some are more common than others. For that reason, we're going to take a look at eight common Bitcoin scams and how you can avoid them.

Blackmail

Blackmail is a well-known method used by scammers to threaten others with the release of sensitive information unless they're reimbursed somehow. This reimbursement usually comes in the form of cryptocurrency, more notably Bitcoin.

Blackmail works by scammers either finding or fabricating sensitive information about you and leveraging that information to force you into a position to send them bitcoin or other forms of money.

The best way to avoid scammers blackmailing you out of your bitcoins is to be careful with selecting your login credentials, which sites you visit online, and who you give your information to. It's also wise to use two-factor authentication whenever possible. If the information they blackmail you with is false and you know it, you may be in the clear.

Fake exchanges

As the name suggests, fake exchanges are fraudulent copies of legitimate crypto exchanges. Typically, these scams will be presented as mobile apps, but you may also find them as desktop applications or fake websites. You have to be careful because some fake exchanges are very similar to the original ones. They may look legitimate at first glance, but their goal is to steal your money.

Typically, these fake exchanges will attract crypto traders and investors by offering free cryptocurrencies, competitive prices, low exchange fees, and even gifts.

To avoid being scammed on a fake exchange, you should bookmark the real URL and always double-check it before logging in. You can also use Binance Verify to check the legitimacy of URLs, Telegram groups, Twitter accounts, and more. 

When it comes to mobile apps, make sure to verify the developer information, the number of downloads, reviews, and comments. Check out Common Scams on Mobile Devices for more details.

Fake giveaways

Fake giveaways are used to scam you out of your cryptocurrencies by offering something for free in exchange for a small deposit. Typically, scammers will ask you to send funds to a bitcoin address first so you can receive more bitcoins in return (e.g., "send 0.1 BTC to receive 0.5 BTC"). But if you make these bitcoin transactions, you won't receive anything and will never see your funds again.

There are many variants of fake giveaway scams. Instead of BTC, some scams will ask for other cryptocurrencies, like ETH, BNB, XRP, and many more. In some cases, they may ask for your private keys or other sensitive information.

Fake giveaways are most commonly found on Twitter and other social media platforms, where scammers latch onto popular tweets, viral news, or announcements (like a protocol upgrade or an upcoming ICO).

The best way to avoid fake giveaway scams is to never participate in any kind of giveaway where you're required to send something of value first. Legitimate giveaways will never ask for funds.

Social media phishing

Social media phishing is a common Bitcoin scam that, like fake giveaways, you'll most likely find on social media. Scammers will create an account that looks like someone with a high level of authority in the crypto space (this is also known as impersonation). Next, they will offer fake giveaways via tweets or by direct chat messages.

The best way to avoid being scammed through social media phishing is double-checking the person is actually who they say they are. There are usually indicators of this on certain social media platforms, like blue checkmarks on Twitter and Facebook.

Copy-and-paste malware

Copy-and-paste malware is a very sneaky way for scammers to steal your funds. This type of malware hijacks your clipboard data and, if you aren’t careful, you will send money directly to scammers.

Let's say you want to send a BTC payment to your friend Bob. As usual, he sends you his bitcoin address so you can copy and paste it into your bitcoin wallet. However, if your device is infected with a copy-and-paste malware, the scammer's address will automatically replace Bob’s address at the moment you paste it. This means that as soon as your bitcoin transaction is sent and confirmed, your BTC payment will be in the scammer's hand and Bob will receive nothing.

To avoid this type of scam, you need to be very careful with your computer security. Be wary of suspicious messages or emails that may contain infected attachments or dangerous links. Pay attention to the websites you browse and to the software you install on your devices. You should also consider installing an antivirus and scanning for threats regularly. It's also important to keep your device's operating system (OS) up-to-date.

Phishing emails

There are several types of phishing. One of the most common involves the use of phishing emails that try to trick you into downloading an infected file or clicking a link that leads you to a malicious website that appears to be legitimate. These emails are particularly dangerous when they imitate a product or service you use frequently.

Usually, scammers will include a message asking you to take urgent action to secure your account or funds. They might ask you to update your account information, reset your password, or upload documents. In most cases, their goal is to collect your login credentials to try and hack your account.

The first step to avoiding phishing email scams is to check if the emails are coming from the original source. If in doubt, you could also contact the company directly to confirm the email you received was from them. Second, you can hover over the email links (without clicking) to check whether the URLs have misspellings, unusual characters, or other irregularities.

Even if you can't find red flags, you should avoid clicking the links. If you need to access your account, you should do it through other means, like typing the URL manually or using bookmarks.

Ponzi and pyramid schemes

Ponzi and pyramid schemes are two of the oldest financial scams in history. A Ponzi scheme is an investment strategy that pays returns to older investors with new investor money. When the scammer can no longer bring in new investors, the money stops flowing. OneCoin was a good example of a crypto Ponzi scheme.

A pyramid scheme is a business model that pays members based on how many new members they enroll. When no new members can be enrolled, the money flow stops.

The best way to steer clear of either of these schemes is to do your research on the cryptocurrencies you buy – be it an altcoin or Bitcoin. If the value of a cryptocurrency or Bitcoin fund is purely dependent on new investors or members joining in, you've likely found yourself a Ponzi or pyramid scheme.

Ransomware

Ransomware is a type of malware that either locks victims' mobile or computer devices or prevents them from accessing valuable data – unless a ransom is paid (usually in BTC). These attacks can be particularly destructive when aimed at hospitals, airports, and government agencies.

Typically, the ransomware will block access to important files or databases and threaten to delete them if the payment is not received before the deadline. But unfortunately, there is no guarantee that the attackers will honor their promise.

There are some things you can do to protect yourself against ransomware attacks:

• Install an antivirus and keep your operating system and applications updated.
• Avoid clicking ads and suspicious links.
• Be wary of email attachments. You should be extra careful with files that end with .exe, .vbs, or .scr.
• Backup your files regularly so you can restore them if you get infected.
• You can find useful ransomware prevention advice and free recovery tools at NoMoreRansom.org.

There are plenty of Bitcoin scams to watch out for. However, knowing how these scams work is an important first step toward avoiding them completely. If you can avoid the most common Bitcoin scams, you’ll be able to keep your crypto holdings safe and sound.

Do you still have questions about Bitcoin scams and how to avoid them? Check out our Q&A platform, Ask Academy, where the Binance community will answer your questions.

• Family offices are hopping on the bitcoin bandwagon, per a new survey.
• Twenty percent were active crypto investors, and another third were considering it.
• The uber-rich are betting on crypto to stay current and follow the lead of Millennial heirs.

Crypto is no longer a niche investment for the uber-rich, with 20% of family offices actively investing in cryptocurrencies, according to a new survey by BNY Mellon Wealth Management conducted with The Harris Poll.

Another 23% said they had limited exposure to crypto, while a third reported they were "exploring" investing in crypto. Just under a quarter said they had no exposure or interest in the asset class.

The survey, conducted in late 2021, included 200 family offices, managing at least $150 million in assets. Fifty six were single-family offices and 144 were multi-family offices. Half were based in the U.S.

It's a marked shift for family offices, which are typically more conservative than institutional investors when it comes to portfolio strategy. Traditionally, family offices shunned highly volatile assets such as crypto with the goal of wealth preservation, not maximizing returns. A survey conducted by Fidelity in late 2020 through spring 2021 found that 47% of family offices held investments in digital assets, up from 19% the year prior.

But family offices that passed on earlier opportunities to capitalize on crypto don't want to miss the boat again, according to Pat LaVecchia, CEO of digital-securities broker-dealer Oasis Pro Markets. One family office told him it had declined to invest in Coinbase six years ago when it was valued at only $415 million. Now it has a market capitalization of roughly $40 billion.

"They thought crypto seemed like a scam. They didn't understand it," LaVecchia told Insider in May. "Now they wish they had made that investment."

Young heirs are pushing family offices to take a bet on bitcoin

The influence of young heirs has also inspired family offices to invest, as 45% of respondents said next-generation heirs were interested in cryptocurrency.

This corresponds with how Millennials and Gen-Z are leading the charge with crypto. In a survey of 2,000 US adults from Blockchain Capital conducted in late 2020, 46% and 55% of millennial and Gen Z respondents, respectively, said they planned to buy bitcoin in the next five years.

According to the BNY Mellon survey, the most popular reason (70%) cited for investing in crypto was to keep up with new investment trends. Just under half said crypto was a good investment opportunity. Fewer than a third cited low interest rates or inflation concerns as a reason to invest.

Despite their enthusiasm, family offices with any level of investment in crypto had widespread concerns about regulation (61%) and high volatility.

Bitcoin ETFs are more popular than crypto startups for investment

Family offices that described themselves as active investors plan to double down on crypto with 72% planning to increase their holdings. Those with limited exposure were much more conservative with only 22% interested in investing more.

Surprisingly, family offices preferred widely available methods for investing over those limited to accredited investors, with 61% using futures-based crypto ETFs. The second most-popular option (59%) was digital-currency exchanges such as Coinbase. Another 42% owned crypto directly in cold wallets. The least popular were investments in crypto startups (28%) and private placements (22%). 

Though crypto is no longer a fringe investment for family offices, they are dipping their toes, not diving in. LaVecchia said they are generally cautious in their portfolio strategy, and lean towards the most popular cryptocurrencies, bitcoin and ethereum.

"Is it a 50% allocation? No. Is it a 5% allocation? Maybe," he said. 

Editor's note: A previous version of this story incorrectly listed Grayscale Bitcoin Trust as an bitcoin futures ETF.

They're three families, all from different parts of Australia.

They have vastly different backgrounds and financial situations.

But one common thread binds them: they have all been embroiled in scams involving cryptocurrency, the decentralised digital currency.

These scams have crippled their futures, with hundreds of thousands of dollars funnelled into the hands of cybercriminals and lost forever. 

Australian Federal Police say cryptocurrency scams have "exploded" during the pandemic, with new figures from the Australian consumer watchdog showing a 172 per cent increase in losses between January and November this year, totalling $109 million. 

What is cryptocurrency?

• Cryptocurrency, or "crypto", is decentralised "digital money" 
• There are more than 10,000 cryptocurrencies in use around the world
• The Australian Tax Office estimates up to 600,000 Australians have invested in "crypto-assets"
• Some cryptocurrencies have exploded it value over the past two years    
• The technology has been praised for its portability, inflation resistance and transparency
• But criticisms centre on its exchange rate volatility and its susceptibility to illegal activity and scams 

"Criminals are really quick to exploit a crisis," Australian Federal Police Cybercrime Commander Chris Goldsmid told the ABC. 

"We're also seeing more and more people working from home which presents greater opportunities for criminals to target people."

The scams are run by global syndicates, and the money trail is murkier than ever. 

Here are the stories of three victims. 

The fake crypto trading platform

Queensland couple Emma Robinson and Hugo de Meira Quintao have long dreamed of buying their own home.

Emma, now 25, started saving her pocket money in primary school, and started investing in Australian shares when she was 18. 

At the start of this year they'd saved more than $110,000.

But before diving into the market, Hugo, 24,had been investing in stocks and started looking for other options to increase his initial house deposit.

One day he received an unsolicitedphone call — and that's when the scam began. 

The call was from someone posing as an investment manager from Irish brokerage Druid ICAV, and they offered Hugo shares in Airbnb.

Using its own fake website and investment platform, the scammers had cloned the name and address of Druid ICAV — but Hugo was none the wiser.

Druid ICAV's activities closely mirrored real-time events, included the initial public offering of a major cryptocurrency exchange. 

Hugo initially put in $7,000 to "test out" the trading platform the company was using.

"After the first IPO, our trading platform got updated and it matched all the real world events, so it looked really real, and I believed it," he said.  

The fake platform showed Hugo's investments rising when in fact he'd simply handed money to scammers.

The Central Bank of Ireland later issued a warning about scammers posing as Druid ICAV, but that came several months after Emma and Hugo invested.

The scammers then offered Hugo fake shares in Coinbase, a well-known international cryptocurrency exchange.

"I read up on it [and] Coinbase had been doing really well, and all the information they gave us mirrored what was happening in real life," Hugo said. 

He said they talked to five different people from what they thought was the company. 

"They gave us the registration numbers, and so we googled that and just checked typed in 'is this a scam?' That kind of thing, nothing came up."

After Hugo put money into the Coinbase launch, Emma decided to get on board as well.

"I thought it was all legit as well, and I saw Hugo was doing really well," she said. 

"You hear a lot of success stories with crypto. A lot of people make, you know, 2,000 per cent on their money in a couple of months. It's not unheard of. 

"I initially invested just under $50,000 and and then I ended up putting in another $15,000 as well."

She said the "brokers" she believed she was speaking to "sounded really confident".

Do you know more about this story? Email Specialist.Team@abc.net.au.

"They were patient with us and the fact that we'd had heaps of questions about everything and there was official documentation," she said.

"It wasn't like you just randomly sent off some money to a bank account."

Emma tried to make a third investment in Coinbase shares of $7,000, but the transaction didn't go through.

She later found out the scammers had closed their accounts. 

At the same time, Hugo was beginning to question their investment with the Irish company. 

"I said to Emma 'I'm getting a strange feeling about the way that they're sounding because of some of their accents,'" he said.

"At one point someone broke [into another] accent and I was like, 'wait a minute, this is weird'. 

"And then I got my family lawyers to help. [They] called the lawyers of the real company.

"And then that's when they told us that the website we've been using isn't their website." 

Emma never heard from the scammers again. 

The couple lost a total of $110,000. 

"I think we were really upset and angry at ourselves because we kind of let it happen and we invested so much when we shouldn't have," Emma said.  

Hugo said he was in disbelief for a week. 

"We couldn't believe it... and then it kicked in."

The couple documented their experience in a cyber fraud report lodged with police and their banks, but it led nowhere.  

"From what we've learnt, there's kind of a loop in the system like the criminals know that once the money is sent overseas, it's no longer investigated. 

"And so that's why they're targeting Australians because they know that they can get away with it." 

Australian victims targeted 

The Australian Competition and Consumer Commission said losses to cryptocurrency-related  scams were likely to be far higher than the $109 million it has recorded so far this year.

Many victims are too distressed or embarrassed to report their experiences. 

Police say victims are often lured in by advertisements on social media, filling out their details and unwittingly becoming an easy target.

AFP Cybercrime Commander Chris Goldsmid said his force was increasing its resources to track down the perpetrators.

"We see a range of criminal groups behind these scams, and [many of them] originate offshore," he said. 

"That's why we work very closely with our international partners to investigate those matters and share intelligence and evidence with our foreign law enforcement partners to take action." 

He said consumers who realised they've been scammed should immediately lodge a case with the government website, Report Cyber, which is then sent to police.

"Early reporting is absolutely critical, reporting it to your financial institution or your bank, and then reporting it through Report Cyber increases the chance that money can be recovered and action can be taken by law enforcement."

Adam and the fake account

Adam, which is not his real name, is a 45-year-old father who emigrated to Australia from Poland when he was just 15.

He's worked for more than a decade as a telecommunications contractor, saving money along the way. 

In October last year, he was looking at ways to invest his savings and came across an advertisement on Facebook to invest in Bitcoin — one of the most well-known cryptocurrencies.  

He got in touch with a company called StocksCM, who told him that $500 was enough to start trading on the stock market. 

The company said it would help him set up a cryptocurrency wallet — which is like a digital trading account — to make the first payment. 

The company claimed the wallet would help Adam avoid hefty exchange and money transfer fees. 

"I called all the numbers and checked their credentials online, as well as their reviews, and most of them were positive," Adam said. 

After about a week, the trading platform Adam had invested his money in showed his $500 had turned into $1,300.

His account manager, who went by the name of "Alex Smith", encouraged him to invest $10,000.

"He said, 'you can see how easy the money is, so in a few months you won't have to work'," Adam said. 

He was told to set up a second cryptocurrency account, and was then given details to transfer his payment to the company's crypto wallet. 

"They said 'if the cryptocurrency exchange asks, just say the wallet belongs to you, don't mention the name of our company'".

Adam was nervous in the beginning, but the company allowed him to withdraw about $6,000. 

Looking back, he said that was a key moment of developing trust with "Alex", making him think he'd be able to withdraw his earnings. 

What came next was a rollercoaster of events and investments, with Adam speaking on the phone to his "account manager" Alex Smith daily.  

Alex told him that with each new investment, the company would give him bonus points. 

Adam's bank even tried to stop him transferring deposits to his cryptocurrency accounts. 

But "Alex" had a line to spin every time. 

"He told me 'you have to be tough, banks don't want to release the money, they don't want you to deal with cryptocurrencies'."

The big investments came when Alex sold Adam on the promise of Amazon shares going up after Black Friday, as well as Apple shares ahead of the release of the next iPhone. 

Then, he was told there was a unique opportunity to invest in shares of pharmaceutical companies Moderna and Pfizer, so he invested more money.

But Adam still hadn't realised he was trading on an investment platform being manipulated by the scammers. 

At times his balance skyrocketed into the millions through a combination of investing and bonus money offered by the company, but Adam was never able to withdraw the money. 

As his earnings went down instead of going up, "Alex" assured him all would be fine.

"He said 'just trust me, it happens all the time in the stock market'," Adam said

Adam's manipulated account showed that he'd lost millions from his balance, and he was told his balance was too low to keep trading. 

His account manager said if he invested another $100,000, there would be an "opportunity to make his money back" in a few months through the companies developing vaccines. 

He borrowed $100,000 from his family, without telling them exactly what it was for. 

By then his nerves were frayed, and he tried to use the fake StocksCM trading platform himself.

His account showed that he was making his money back and he wanted to withdraw. 

But then the company claimed there had been a security breach in their system, and his account would be frozen.

"Every time he called I was just 'OK Alex, stop being nice, I'm not going to be nice, where's my friggin' money, just transfer my money'," he said.

"I tried to withdraw, they always refused or cancelled." 

By then, he'd searched harder online and found dozens of negative reviews. 

Adam again sent an email to Alex asking what had happened to his money.

Alex replied that someone would call him about the 'money recovery' but Adam said he never received a phone call. 

He lost $457,000.

Adam said the whole experience — which ran from October last year to April — has taken its toll on him and his family. 

He's now working double shifts to try and make as much money back as he can. 

"It's not only [about] the lost money. It's your plans for the future."

"You say 'OK, why did I do it?' When you're losing such big [amounts of] money, it's an advantage for them because they can control you, because in your head you're saying you want your money back."

At the time of publication, it was unclear whether there had been any official warning from Australian authorities about the operations of StocksCM.

After several attempts to contact StocksCM via phone and through their live-chat through their website, the company said "you don’t have an account with us so we can't help you".  

'We know where they are'

Australian cybercrime investigator Ken Gamble said he had many clients scammed by StocksCM. 

"StocksCM is a very sophisticated group based off shore and we know where they are," he said. 

"We know exactly how they operate.

"And it's compartmentalised across multiple countries and it is an example of the sophistication of these scams."

He said he was in the process of building a case for law enforcement to investigate.

"We have to demonstrate how the fraud works and where the fraud is and how the fraud has been perpetrated. 

"Once we have that evidence in a presentable format, we will go to law enforcement in multiple countries and we will have those people arrested."

Melanie and the mystery CoinSpot account

Not all crypto scams work in the same way.

Some scammers are targeting vulnerable Australians — people who don't even know they've put money into the platform.

At just 25, Melanie Chapman was diagnosed with multiple sclerosis.

Now more than 20 years later, she lives a full and independent life, but accepts her mind isn't quite what it used to be.

Earlier this year a man who called himself Peter and claimed he was from her bank, said there had been a security breach on her bank account and needed access to help her fix it. 

Mel's recollection of the period is hazy, but she said she spoke to the man several times over the course of a few weeks.

She then realised some of her savings had disappeared from a bank account she rarely accessed. 

She called her younger brother Sean, her power of attorney, asking for help.

"[I felt] completely overwhelmed," she said.

Her brother immediately brought up his sister's bank statements and saw a number of curious transactions.

A $50,000 inheritance from her late mother was gone. 

Sean went through her emails and worked out that a cryptocurrency account through Australian-owned company CoinSpot had been established in Mel's name. 

CoinSpot is Australia's biggest cryptocurrency exchange and gives users access to more than 320 different digital currencies.

The scammers used the CoinSpot account to withdraw Mel's savings from several accounts she held with the same bank.  

"[There were] eight days in a row of them transferring out the $8,000 [just] before midnight, every single night."

Sean had an IT expert examine Mel's accounts and worked out what had happened. 

"The scammer installed remote access software onto her phone," he said. 

"The scammers sent her a link in an email saying 'click here, we think you're being scammed, here we'll help you'.

"That obviously gave him full access to her email, her bank account. And that's what allowed them to start the process of stealing her money." 

While the bank was helpful and managed to put a stop to the final transaction of $8,000, Sean is angry with CoinSpot. 

He said CoinSpot "stonewalled" his requests for help, and never explained what forms of identity were used to set up the account.

In correspondence seen by the ABC, CoinSpot told Sean they couldn't access Mel's account history because of privacy laws, even though Sean was her power of attorney. 

"I think with CoinSpot that they really should have the systems in place to protect the most vulnerable in society," he said. 

CoinSpot issued a brief statement to the ABC. 

"CoinSpot has contacted Melanie to have a discussion about her situation to see whether we can assist further with recovery," it said in a statement.

"CoinSpot will continue to work closely with the relevant authorities with respect to any ongoing investigations."

The company refunded a $600 account fee to Mel, while her bank retrieved $8,000.

But the rest of her money is gone.

"It's gone into Bitcoin, it's not coming back."

Uber CEO Dara Khosrowshahi said the company would consider accepting bitcoin as a payment method if people asked, but investing in the cryptocurrency is not part of its strategy, CNBC reported on Thursday (Feb. 11).

Khosrowshahi told CNBC that Uber had it on the table for discussion but “quickly dismissed” the idea of following Tesla’s move of buying bitcoin with corporate cash. Accepting crypto for payments, however, is something that could happen.

“It’s a conversation that’s happened that has been quickly dismissed. We’re going to keep our cash safe. We’re not in the speculation business,” Khosrowshahi told CNBC. “The upside in our company is in the business that we’ve built, not the investments that we invest in.”

Uber reported it had $5.65 billion in cash and cash equivalents as of Dec. 31, CNBC reported, along with $1.18 billion in short-term investments.

“Just like we accept all kinds of local currency, we are going to look at cryptocurrency and/or bitcoin in terms of currency to transact,” he said. “That’s good for business. That’s good for our riders and our eaters. That we’ll certainly look at and if there’s a benefit there, if there’s a need there, we’ll do it. We’re just not going to do it as part of a promotion.”

PepsiCo CFO Hugh Johnston also told CNBC on Thursday that the company “had the conversation” about buying bitcoin. “The conclusion we came to pretty quickly was bitcoin is too speculative for the way we manage our cash portfolio,” Johnston said.

The comments by Uber and PepsiCo followed Tesla’s move to buy $1.5 billion in bitcoin with corporate cash. Tesla also said it would soon accept cryptocurrency as a payment method. That started Wall Street musing whether Tesla’s move could be a catalyst for widespread interest in crypto.

Mastercard on Wednesday (Feb. 10) said it was planning to open its platform to cryptocurrencies. The company already allows customers to complete some transactions with cryptocurrencies outside Mastercard's formal network.

BNY Mellon announced on Thursday that it was launching a digital assets division later this year. The country’s oldest bank is the first global financial institution to announce plans to integrate coin currencies. 

PayPal announced in November that it was expanding its platform to cryptocurrency payments. Daniel Gouldman, CEO of crypto-banking platform Ternio, told PYMNTS that PayPal’s acceptance is a major milestone in crypto’s aim for mainstream acceptance.