If you have not been a victim of a scam that is related to Cryptocurrency, then you might be a bit ashamed to admit it in public. But that should not be the case now that Steve Wozniak, one of the founders of the technological conglomerate, Apple, has come out to reveal that he was conned.
Speaking at the Economic Times Global Business Summit, Wozniak explained how he ended up losing some Bitcoins to the hands of a well-acquainted scam artist. He said that the whole problem began the moment he sold exactly seven Bitcoins to a buyer through a credit number that was not acquired in the right way, probably stolen. The transaction did not go through as the “rightful owner” of the card got wind of it and ended up canceling the entire process. This left Steve Wozniak, a well-accomplished technology expert, with no sign of the precious Cryptocurrency in his digital wallet.
Speaking further on the matter, Wozniak said that the fact that the blockchain technology is capable of identifying who owns the crypto coins does not make the entire process free from any kind of fraud.
In his case, the secure and well-encrypted blockchain technology did not prevent his seven Bitcoins from being stolen by a scammer. It did not take the person who bought the digital coins from him online minutes to, later on, cancel the payment through the credit card.
What makes his matter even worse is that the transaction was carried out on a credit card number that was stolen and so getting it back is nearly impossible.
The Apple’s co-founder also stated that he decided to liquidate a number of his Bitcoin holdings in the month of January. This was the time when this virtual currency was trading not far from the all-time high it experienced in December 2017. He said that even though he was so much interested in using the digital coin, following the price movements that followed became a complicated task.
The incident of Mr. Steve Wozniak is a bit curious when looked at from various angles. In most instances, it would just require a common sense to avoid selling this virtual currency to an unknown buyer in exchange for a payment made on a credit card. This is due to the fact that Bitcoin transactions are not reversible; a fact most people are aware of. However, he went ahead to authorize this kind of transactions knowing quite well that it could be canceled just at the point of sale. That in itself is something that draws much curiosity.
At the moment, residents and traders in the United States can seek the services of different trading and brokerage platforms, which can safeguard them against counterparty risks at just tiny fees. Even though Steve Wozniak did not reveal the number of Bitcoins he earlier had, he said that he had bought the Cryptocurrency when it was being sold at around $700. It is not clear why Wozniak decided to go the peer-to-peer trading way instead of carrying out the transaction through any of the thousands of over-the-counter trading desks available for crypto trading.