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Martti Malmi, Easy Wallet Fraud, SC5.io, SEC issues warnings

Posted on Thursday, 14th August 2014 @ 06:37 PM by Text Size A | A | A

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SEC: Bitcoin Believers Are Ripe for Scammers


The U.S. Securities and Exchange Commission issued an official alert to investors on Wednesday about the risks of Bitcoin or other virtual-currency related investments. One of the biggest dangers, according to the SEC, is simply that investors check their common sense at the door when fraudsters come pitching something sexy and apparently innovative.

“A new product, technology, or innovation—such as Bitcoin—has the potential to give rise to both frauds and high-risk investment opportunities,” the notice starts. “Potential investors can be easily enticed with the promise of high returns in a new investment space and also may be less skeptical when assessing something novel, new and cutting-edge.”

For those who can’t resist the lure of such virtual-currency investments—even after recent cautionary tales, such as the Mt. Gox blowup—the SEC has some practical advice, nearly all of which would seem to apply equally to any investment. Avoid schemes that “guarantee” high investment returns, come from individuals or investment firms that are not licensed or registered with securities regulators, and arrive unsolicited from unknown senders.

But another thing applies more particularly to Bitcoin’s true believers: If you were an early adopter of Bitcoin, the SEC suspects you will make a particularly enticing target. “Scam artists take advantage of Bitcoin users’ vested interest in the success of Bitcoin to lure these users into Bitcoin-related investment schemes,” the notice warns. “Fraudsters and promoters may solicit investors through forums and online sites frequented by members of the Bitcoin community.”

Finally, the nature of Bitcoin makes recourse difficult, in the event you’re taken in by a scam. Law enforcement faces challenges in investigations involving Bitcoin, since the nature of the currency makes it hard to trace or seize or freeze ill-gotten gains.

The SEC last July published an investor alert (pdf) about Ponzi schemes using virtual currencies. But the danger to investors seems to be rising in regulators’ minds as Bitcoin’s popularity increases and legitimate, but high-risk investment opportunities expand along with fraud. Digital currency is one of the top 10 threats to investors, according to the North American Securities Administrators Association.

 

In a  Ripoff Report  by an HTML5 site developer, Martti Malmi allegedly cheated users of more than 20000 Euros.

I got scammed for 22440 euros by SC5. My key contact and team lead was Martti Malmi and the job was to produce a commerce site in HTML5.  So they asked for a deposit to start the work.  Then I noticed, after the first update, the very poor quality of their work and I started expressing my deep concerns. Martti Malmi himself and other team members stopped answering my calls.  I got strange email answers that seemed to be in Indian style English.

After 3 weeks I found the truth; my Project was being handled in Bangalore, India, by programmers making on average US$12/hour. ( I investigated and spoke with several firms about this)  I was shocked and complained to Mr. Malmi, who said that the terms and conditions did not specify that SC5 could not outsource. This is a total misrepresentation of our contract and I feel absolutely betrayed.  They say they will refund part of my money but not the part already spent. I can not believe this fraud.  Next stop is the Finnish courts. There are many more scam alerts that pop up in search results for Martti Malmi reporting different scams, related to Bitcoin, eCurrency ATMs and web development.

 

In addition, there have been numerous complaints about the EASY WALLET scam in which many people have lost all their bitcoins.  Marrti Malmi is one of the developers and founders of this deep web service.

 

 

 

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Comments

  • applepie4u

    May 28, 2013 09:57 PM


    Martii Malmi is a known con artist. According to the Russian press, in 2009 he was arrested in St. Petersburg for attempted money laundering and bribery related to the Kolbakov city council scandal. ( I will soon post the link )

    Now he’s running a bitcoin scam ( he owns bitcointalk.org ) using insider info to pump and dump. There are at least 50 accusations against him. People need to do their homework.

  • tanger3

    June 9, 2013 09:58 PM


    bitcoin is great but we do need to weed out the scammers. I cant name names but I do know for a fact that Martii Malmi has conned a lot of people who were hypnotized by bitcoin. so heads up everybody, this guy is a con.

  • Vingle

    July 3, 2013 04:20 PM


    I worked with Martti Malmi 8 months, the customer service was excelent, but I couldnt see my money again,

  • droper

    July 3, 2013 04:27 PM


    for now Martti Malmi is a SCAM artist – Stay away !!!!!!!!!!!!!!!!!!!!!!!
    I depsited $10,000 in January. My account grew to $12,500. I read the reviews here on FPA and got worried. So I logged onto the platform and withdrew $7,500.

  • tanger3

    July 3, 2013 04:33 PM


    The scammer Martti Malmi
    Guys its time we sent an email and put some pressure on liquidators
    send as much emails to them on christina.buergi@finma.ch and info@finma.ch and other liuidators email as mentioned below in hpub.org

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