Cryptocurrencies as financial instruments of the digital market have had thousands of views since they were created. Still, unfortunately, many people have made improper and illicit use of them.
It is how the typical pyramid strategies have taken over the crypto market, leaving many people affected and without capital.
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What is a crypto embargo?
Digital currencies have made it very clear that they can acquire a financial position among their users, which is relatively attractive, but let us remember that the risks they represent also mean that cryptographic operations require a lot of attention. When speaking of an embargo, reference is made to an administrative procedure in which the funds in current assets are retained to make later use for the payment of commitments to third parties for the illegal use and handling of funds. When talking about the capital seizure, certain relevant aspects must be considered that make a persons capital seizable; among some are:
- The goods or assets to be seized must be in the owners name or the person who appears as a possible seized person.
- The assets to be seized must be economic or, failing that, assets.
- The possibility that the seized assets are converted into current assets must be close to 100%
- The embargo must be done without obstacles that could break the legality of the same. When we talk about a cryptographic seizure, we refer strictly to a persons digital assets.
In the case of Bitcoin and other digital currencies, it is a bit complex since one of the main characteristics of these digital financial instruments is anonymity. From the perspective of research, tracking the personality of an individual who performs various operations through cryptocurrencies is often quite complicated since many operations per minute are generated.
It is there where financial entities become a benchmark in terms of information security and location of any fraudulent operation since this big financial Data keeps all its users linked and identified.
The first Crypto Embargo
This time the eyes are on Argentina, a town known as Tucumán. The first embargo was executed on a digital asset fund account in the name of Citizen Edgar Adhemar Bacchiani, who created a possible pyramid scheme in which he dragged a considerable number of people.
The proposal that this user of cryptocurrencies proposed to his investors was to generate high returns in a short time, where the annual interest rate that he offered was 50% return. Unfortunately, with his business idea, he dragged many people who, to be in a technological era with so much information about cryptographic pyramids, fell into his offer.
After endless complaints, he was arrested. Then, of course, the accounts he had in the different Exchanges, including Binance, were seized. The embargo is made for 5,000 dollars to respond to all the affected people in return for their money.
The Binance exchange platform arranged all the positive attitudes in favor of protecting its users and the legality that cryptographic operations deserve, where its disposition was to collaborate with the requests issued by the Argentine government and justice entities.
The diversity of options that the cryptographic environment currently offers to carry out operations is extremely wide, so it is necessary to evaluate very well which are the most appropriate and that they adapt correctly to the profile of the novice investor. The legal action, in this case, had an effect since the person responsible was arrested.
Furthermore, through a promissory note approved by the parties, the delivery of the capital to the users who were defrauded and consequently harmed was carried out.
Although for many, the returns and opportunities offered by digital currencies represent a way of creating fraudulent businesses for their interests and to the. detriment of third parties who usually fall innocently. The crypto ecosystem does not need intermediaries; its platform has shown that they. are decentralized; for this reason, they run away when businesses are offered in which they operate for you.