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Possible Bitcoin [BTC] scam: BCSC warns Canadian Bitcoin exchange promising unrealistic investment returns

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Possible Bitcoin [BTC] scam: BCSC warns Bitcoin exchange in Canada promising unrealistic investment returns
Source: Pixabay

Canada’s regulatory agency, the British Columbia Securities Commission [BCSC], issued a warning against a suspicious trading platform, Canada Bitcoin Exchange Inc. [CBE]. The platform was offering excessively attractive investment plans with exponential gains, and subsequently came under the BCSC’s radar recently.

Source: Canada Bitcoin Exchange

The investment returns for all the four plans listed on the website were based on High Yielding Investment Programs [HYIP], which offered extraordinarily high investment returns. The exchange purported 3,586% returns in 48 hours and 7,985% returns in a mere 24 hours. The platform accepted payment mainly in Bitcoin [BTC], implying that recovering the assets would be very difficult in case of fraud.

Canada’s financial watchdogs confirmed that the suspicious entity was not registered to trade in British Columbia. The Commission further urged people to exercise caution while dealing with platforms similar to the one in question.

Another interesting aspect about the platform’s website was that apart from a basic Customer Support section, there was no mention of any licenses granted by any recognized regulatory body. Following the discovery, the BCSC reportedly found out that CBE was an unregulated organization.

Despite many in the online crypto community speculating that CBE might be a scam or a fraudulent organization, it is still not evident whether the platform did dupe investors. Two blockchains associated with the Bitcoin address provided on CBE’s website were identified on the Bitcoin block explorer service, Blockchain.com. Both these aforementioned addresses had recorded zero transactions.

Source: Blockchain.com

For the BCH address,

Source: Blockchain.com

According to domain search portal Who.Is, and newsBTC, the exchange was registered under the domain, NameSilo, LLC. It was further reported that the account was created after 1 August, 2017.

Source: Who.Is

Off late, crypto-platforms and exchanges have flocked to places with crypto-friendly regulations such as Malta and Switzerland, following the massive scrutiny and institutional challenges and warnings associated with trading in the US and Canada.



In the past three months alone, around 40 regulatory bodies in the US and Canada have issued cautionary alerts, urging investors to do their homework before dealing with any crypto-platform.

NASAA [North American Securities Administrators Association] President and Alabama Securities Commission Director, Joseph P Borg, had this to say in August 2018,

“State and provincial securities regulators are committing significant regulatory resources to protect investors from financial harm involving fraudulent ICOs and cryptocurrency-related investment products and also are raising awareness among industry participants of their regulatory responsibilities.”





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Bitcoin [BTC]: Debating on king coin’s transaction speed is a red herring argument, says Charlie Shrem

Akash Anand

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Bitcoin [BTC]: 'Debating about BTC's transaction speed is a red herring arugument', claims Charlie Shrem
Source: Pixabay

The debate around Bitcoin [BTC] and its effectiveness in the current financial atmosphere has been a long ensuing debate in the cryptocurrency industry. The supporters and naysayers of the world’s largest cryptocurrency have locked horns on various aspects of the coin, be it the coin’s characteristic as a store of value or the amount of time it takes to settle Bitcoin transactions.

In a recent tweet, Charlie Shrem, the Founder of Bitcoin.org and one of the most popular Bitcoin proponents, spoke about the topic, directly addressing critics who had a problem with settlement times. His tweet read:

““Transaction speeds” when debating #bitcoin vs other faux-crypto’s is red herring argument. There were plenty of fast ways to move money before bitcoin. That’s not why we’re here. We’re building a censorship resistant value network that can-never be controlled by a single party.”

Bitcoin proponents had always made it a point that the cryptocurrency was never meant for fast transactions, but rather to compete with Gold as the standard for a ‘store of value’. Even Samson Mow, the CSO at Blockstream had earlier claimed that BTC was never meant to be fast by adding:



“If you want money, it does not need to be very fancy, and a lot of the altcoin projects; I don’t wanna go into it but they are just based on gimmicks. What you really want is sound money, something which is reliable and bulletproof.”

The ‘BTC is not effective’ camp had responded voraciously many a time by stating that something aimed at changing the financial dynamic should be nothing short of fast or else there was no way it could become an effective form of value. This rebuttal for this argument was that Bitcoin’s goal was to create a cryptocurrency integrated mainstream structure and even though it was not lightning fast, the transaction speed of Bitcoin was still faster than that of current methods like Visa and MasterCard.

Charlie Shrem was also in the news recently when he stated that when Mt Gox imploded, the market created the first “token as debt”. The statement was made in connection with the massive loss of funds which occurred following the hack of the then largest cryptocurrency exchange.





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