Recently, the US Department of Justice announced that Jay Mazini, a popular Instagram influencer has been charged with wire fraud in relation to a bitcoin scam.
According to the Justice Department, noted that the complaint was filed in Brooklyn’s federal court. Jegara Igbara or more popularly known as Jay Mazini. Allegedly, Mazini encouraged his victims to send him bitcoin. In return, he promised that he would wire transfer cash in exchange.
The DOJ further explained that Mazini never sent the cashback in reality. Instead, he used his significant popularity in social media in order to trick his followers into selling him bitcoin at an attractive yet inflated value.
The complaint also said that until this March, Masini maintained the popularity of his Instagram account. He had nearly a million followers and used his account to post videos that show himself giving large amounts of cash to people as gifts. Detailed information publicized by the justice department said that the influencer offered other Instagram users that he would buy their bitcoins at prices 3.5 percent to 5 percent larger than the market value.
According to Mazini, he was willing to pay more for bitcoins because the traditional bitcoin exchanges were limiting the amount of bitcoin that her could purchase. It's one of the most ridiculous ways of buying Instagram followers ever documented.
After the victims agreed to his offer, Mazinig showed them documents that include images of supposed wire transfer confirmation pages. These pages falsely confirmed that he sent wire transfers for the accounts. However, when the victims sent him bitcoins, the wire transfer that he promised never arrived.
Moreover, William Sweeney, the Assistant Director in Charge of the FBI emphasized that there was nothing philanthropic about the bitcoin transactions that the Instagram influencer promised his victims. He even pointed out that a quick search on the internet will reveal a completely different image that shows Mazini is a multimillion-dollar scammer.
As of now, the investigation for the bitcoin scam that happened is still going on. The FBI is encouraging everyone who thinks that they might have been scammed to file a case against Mazini.
If convicted, Mazini will face 20 years in prison.
Acting United States Lawyer Attorney Mark Lesko stated that they will continue to work closely with its law enforcement partners in order to stop the fraudulence as the one did by the defendant. Notably, there are a lot of social media scams perpetrating across the internet, waiting and preying on unknowing victims.
On the other hand, the IRS-CI Special Agent in Charge Jonathan Larsen warned buyers that they should be cautious in terms of purchasing bitcoins and other cryptocurrencies offered in social media. This is because a lot of people use their popularity to defraud the people who think seek to exchange bitcoin for cash that costs more than its real market value. For this reason, people should always be on guard for them not to fall victim.
To those who are not that knowledgeable about what bitcoin is, it is basically described as a cryptocurrency or virtual currency. That being said, it is a type of money that is entirely virtual.
Cryptocurrency includes Bitcoin, Ethereum, Litecoin, Ripple, Dash, Dogecoin, and others. The most common type of cryptocurrency is bitcoin. It is a digital currency that you can buy, sell or mine on the internet.
Needless to say, bitcoin is like an online version of physical money. It can be used for buying products or services. However, it is important to note that there are only a few shops that accept bitcoin. On the other hand, there are some countries that banned this cryptocurrency altogether.
Still, some companies are already adapting bitcoin due to its growing influence. For instance, in October last year, PayPal, a popular online payment service, announced that it would let its customers use its platform to buy and sell bitcoin.
Moreover, there are physical coins that are considered bitcoins. However, they are no more than a novelty. And without the private codes that are printed inside them, these physical bitcoins would be worthless.
Basically, every bitcoin is a computer file stored inside a digital wallet app that owners can access on their computer or smartphone. The app allows bitcoin owners to send the said cryptocurrency to each other.
In addition, every single bitcoin transaction is recorded in the blockchain — a public list for cryptocurrency. For this reason, it is possible to trace the history of bitcoin, allowing the authorities to stop people from spending coins that are not their own. People can also make copies or undo bitcoin transactions within the blockchain.
There are a lot of things in this world that are considered valuable. Take gold and diamonds, for instance. In fact, the Aztecs once used cocoa beans as money.
That being said, bitcoins are valuable for the reason that people are very much willing to exchange them for services, real goods, and even real money.
“Why do people want bitcoins?” you may ask. The answer is that they like the fact that it is not controlled by huge banks or the government. Apart from that, they can use their bitcoins anonymously. Despite the fact that all transactions are recorded, nobody will ever know which account number is yours unless you share it with them.
For instance, Elon Musk, one of the world’s richest men, said that he was a big supporter of bitcoin. He has repeatedly shown his support for cryptocurrency in recent years, causing major movements in their values. And his particular endorsement of bitcoin led to the value of this digital currency increasing significantly.
Date: April 27, 2021 / Categories: Marketing, / Author: Joy P