Cryptocurrency is a popular digital medium of exchange. Cryptocurrency is not controlled by a central authority, such as the Federal Reserve. This theoretically makes cryptocurrencies immune to government control and interference, which is an attractive feature to cryptocurrency investors. In addition, cryptocurrencies can be transferred directly between two parties via the use of public and private keys. These transfers can be accomplished with minimal processing fees, allowing users to avoid the high fees traditionally charged by financial institutions.
Popular Types of Cryptocurrency
Although there are hundreds of different cryptocurrencies on the market, below are some of the most popular.
Bitcoin – Bitcoin is easily the most famous cryptocurrency. Bitcoin is considered the digital gold standard in the cryptocurrency industry, and it is used as a global means of payment. Unfortunately, however, Bitcoin is also associated with cybercrime, including darknet markets and ransomware.
Ethereum – Ethereum is considered second on the cryptocurrency hierarchy. Ethereum can process transactions and complex programs. This makes it the perfect instrument for the blockchain application.
Litecoin – Litecoin was originally considered second only to Bitcoin in the cryptocurrency world. While Ethereum has since taken that honor, Litecoin is still actively developed and traded.
Monero – Monero uses what is known as the CryptoNight algorithm to add privacy features that Bitcoin lacks. When someone uses Bitcoin, each transaction is documented in the blockchain. However, Monero’s use of the CryptoNight algorithm prevents this documentation, thus making it very difficult to track.
How to Report Cryptocurrency Fraud
Unfortunately, due to its relative lack of regulation when compared to other investments, the cryptocurrency world is crawling with scammers. Due to the high number of cryptocurrency scams in operation, the federal government relies on whistleblowers to help combat the problem. Under the SEC Whistleblower Program, a person with knowledge of cryptocurrency fraud, also called a whistleblower, may be eligible for a significant financial reward for disclosing such information to the SEC. Specifically, under the SEC Whistleblower Program, the SEC will provide a whistleblower reward to anyone who provides the federal government with original information about wrongdoing that leads to monetary sanctions over $1 million. In exchange for providing this information to the government, a whistleblower may be entitled to up to 30% of this amount. Given the high amounts typically involved in these types of cases, whistleblowers are often entitled to significant compensation for their efforts.
Do You Have Information About Cryptocurrency Fraud?
If you have information regarding cryptocurrency fraud, you may be entitled to a monetary reward. However, in order to make sure that you report this information in a way that gives you the best chance possible at financial compensation, you need an SEC whistleblower attorney on your side. At Newman & Shapiro, we’ll provide you with first-rate representation and dependable service in your cryptocurrency fraud whistleblower case. Please contact us today to learn more about your rights under the SEC whistleblower program.