Elaborate Elon Musk deepfake crypto fraud uncovered in Hong Kong

A fraudulent crypto exchange platform used AI-generated videos of Elon Musk and misleading information to promote crypto trading services.

View Details

Former FTX CEO Seeks $10M Insurance Fund for Legal Defense, Request Opposed by FTX Debtors and Unsecured Creditors

Court filings reveal that the FTX co-founder is seeking access to a $10 million insurance plan to cover his attorney fees. FTX debtors and unsecured creditors have opposed Sam Bankman-Fried’s request, arguing that every dollar spent on his defense is “one less dollar” available to cover the losses of the debtors. FTX Debtors and Unsecured [...]

The post Former FTX CEO Seeks $10M Insurance Fund for Legal Defense, Request Opposed by FTX Debtors and Unsecured Creditors appeared first on Crypto Breaking News.

View Details

US Man Pleads Guilty to Defrauding Banks and "Leading Crypto Exchange" of over $4M

Twenty-six-year-old Esteban Cabrera Da Corte, the leader of a Miami crew, has pleaded guilty to defrauding US banks and “a leading cryptocurrency exchange” of over $4 million through fraudulent reversals. US prosecutors on Wednesday said Da Corte deployed false and stolen identities to perpetrate the scheme.

According to Damian Williams, the US Attorney for the Southern District of New York, Da Corte and his co-conspirators in around March 2020 opened various accounts with an unnamed crypto exchange using fake US passports, drivers’ licenses and stolen personally identifying information. These accounts were then linked to bank accounts operated by Da Corte and his crew.

How the Scheme Was Run: DOJ

Furthermore, the Department of Justice (DOJ) in the statement explained that Da Corte and his crew bought cryptocurrencies from the crypto exchange using cash deposited into the bank accounts via Automated Teller Machines (ATMs). However, this purchase of cryptocurrency was immediately transferred to other digital assets wallets outside the exchange and controlled by the crew.

After this process, the prosecutors alleged that Da Corte and his team started to make phone calls to their US bank account providers, falsely claiming that the cryptocurrency transactions were unauthorized. As a result of their claims, the banks reversed the purchases, prosecutors said.

“The operation of this scheme by the Defendants resulted in US banks processing more than $4 million in fraudulent reversals and the Cryptocurrency Exchange losing more than $3.5 million worth of cryptocurrency,” DOJ added.

Man Faces Up to 20 Years in Prison

As a result of Da Corte’s guilty plea to a count of conspiracy to commit wire fraud, he now faces up to 20 years in prison, prosecutors said, adding that the crew leader has agreed to pay approximately $3.6 million in restitution. He has also agreed to forfeit $1.2 million.

“Our Office will continue to work vigorously with our law enforcement partners to protect the integrity of U.S. banks and financial markets to the full extent of the law from those who seek to enrich themselves through fraud and deceit, including those who attempt to shroud themselves in the anonymity of digital transactions,” said Williams.

FMA flags fraudulent broker; new FX pairs on Admirals; read today's news nuggets.

View Details

Report: Terra Co-Founder Do Kwon Plans to Appeal Detention Extension After Arrest in Montenegro

According to the Montenegro-based newspaper Vijesti, Do Kwon, the co-founder of Terraform Labs, also known as Kwon Do-hyung, is appealing the detention extension ordered by a Montenegrin court. Kwon was arrested on March 23, 2023, after being caught at Podgorica Airport in Montenegro while traveling with fraudulent identification documents. Report Says Kwon’s Legal Representation Aims [...]

The post Report: Terra Co-Founder Do Kwon Plans to Appeal Detention Extension After Arrest in Montenegro appeared first on Crypto Breaking News.

View Details

Brazilian Lawmaker Seeks Binance Probe over Links to Pyramid Schemes

Binance’s troubles with public authorities may compound in the coming days as Alfredo Gaspar, a Brazilian lawmaker, has requested that the country’s lower parliamentary house probe the cryptocurrency exchange over alleged connections to pyramid schemes in the country. Gaspar asked that Guilherme Nazar, Binance’s Country Manager in Brazil, be summoned before the chamber to testify as a witness in a Commission of Inquiry (CPI) investigation.

Lawmaker Justifies Probing Binance

According to Gaspar, Binance operates in Brazil through a representative firm, B Fintech Serviços de Tecnologia LTDA. Defending the request to summon Nazar, the lawmaker cited the media report of a pyramid scheme, Ever Operations and Investment, whose funds were held in a Binance account and blocked following a court order.

The lawmaker also mentioned another media report involving Brainscompany, a crypto investment management company, which blamed Binance for the delay in paying its customers in December. The media report compared the Brainscompany’s business model to that of Rental Coin, a reportedly fraudulent crypto scheme whose Founder was arrested last year.

Providing further justification for the request for the summon, Gaspar pointed to the ongoing lawsuit of the US Securities and Exchange Commission against Binance for allegedly mishandling client funds, among other allegations. He added that Binance is also facing or previously suffered regulatory crackdowns in Brazil, Japan, China, Germany and the United Kingdom.

Brazil’s SEC Investigates Binance

According to Brazilian financial publication, InfoMoney, the Securities and Exchange Commission of Brazil in March reopened its 2022 investigation into B Fintech for allegedly offering derivatives contracts to users in the country without authorization. The securities regulator told the publication it had “new facts” for the case.

However, Binance in response denied the allegation, saying it does not offer derivatives in Brazil. Nonetheless, the lawmaker listed the report as another reason for the lower parliamentary chamber to approve the summon.

“Therefore, we can deduce that Binance is entirely intertwined with the motivation of this CPI and it is essential to understand its performance in the country, its relationship with B Fintech (its official representative), as well as its connection with companies that respond in court for harming Brazilian consumers,” Gaspar explained in Portuguese, as translated into English.

According to Brazilian news outlet, Portal do Bitcoin, other members of the CPI will vote on Gaspar’s request to summon Binance’s head in Brazil at their next session likely to hold on June 27, 2023.

Meanwhile, Binance is reportedly being investigated by public prosecutors in Paris over the ‘illegal’ provision of crypto services before it was licensed in May last year, Finance Magnates recently reported. The crypto exchange is also being reportedly probed for ‘acts of aggravated money laundering’ and has been under investigation since February 2022.

New exchange on TradingView; HKEX in New York; read today's news nuggets.

View Details

US Regulators Charge FTX’s Senior Executive Nishad Singh with Fraud

<p>Nishad Singh, the former Director of Engineering at bankrupt cryptocurrency exchange, FTX, on Tuesday became the third of close associates of Samuel Bankman-Fried, the exchange’s Co-Founder, to plead guilty to fraud charges. </p><p>On Tuesday, both the United States <a href="https://www.financemagnates.com/terms/s/securities-and-exchange-commission-sec/" class="terms__main-term" id="3718b4df-fc5f-479a-861e-f52759439c15" target="_blank">Securities and Exchange Commission (SEC</a>) and the Commodity Futures Trading Commission (CFTC) charged Singh with misappropriating funds from FTX.com and aiding and abetting Bankman-Fried and hedge fund Alamedia Research LLC in diverting FTX customer assets. CFTC said it charged Sigh before a district court in southern New York.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Today we charged Nishad Singh, the former Co-Lead Engineer of FTX Trading Ltd., for his role in a multiyear scheme to defraud equity investors in FTX, the crypto trading platform started by Singh, Samuel Bankman-Fried, and Gary Wang.</p>— U.S. Securities and Exchange Commission (@SECGov) <a href="https://twitter.com/SECGov/status/1630668819755573248?ref_src=twsrc%5Etfw">February 28, 2023</a></blockquote><p>Reuters reports that 27-year-old Singh pleaded guilty to six counts of fraud charges including wire fraud, conspiracy to commit fraud, <a href="https://www.financemagnates.com/terms/m/money-laundering/" class="terms__secondary-term" id="f30ffb65-351e-44d6-9dae-0714f08b59b2" target="_blank">money laundering</a> and defrauding the United States. In December last year, Carline Elison, the former Chief Executive Officer of Alameda Research and Gary Wang, FTX’s Chief Technology Officer, <a href="https://www.financemagnates.com/cryptocurrency/sam-bankman-frieds-two-top-associates-plead-guilty-to-criminal-charges/" target="_blank" rel="follow">pleaded guilty to several counts</a> of crimanal charges.</p><p>However, while US regulators are closing in on Bankman-Fried's inner circle, the former FTX CEO and Co-Founder <a href="https://www.financemagnates.com/cryptocurrency/news/ftxs-sam-bankman-fried-pleads-not-guilty-to-us-criminal-charges/" target="_blank" rel="follow">pleaded not guilty to eight criminal charges</a> filed against him in December 2022. Regardless, prosecutors last week expanded criminal charges against Bankman-Fried to 12, alleging him of conspiracy to make over 300 illegal political donations.</p><p>SEC, CFTC Unveil Charges against FTX’s Nishad Singh</p><p>In its complaint, SEC accused Singh of aiding Bankman-Fried’s transfer of FTX.com customer assets to Alameda Research by creating a software code that allowed customer funds to be diverted to the crypto hedge fund. This is despite “false assurances” Bankman-Fried gave to FTX investors about the safety of their funds.</p><p>“Among other things, these features in the <a href="https://www.financemagnates.com/tag/ftx/" target="_blank" rel="follow">FTX</a> code favored Alameda and allowed it to execute transactions even when it did not have sufficient funds available, including, critically, a ‘can withdraw below borrow’ functionality that allowed Alameda to withdraw billions of dollars in customer assets from FTX,” CFTC explained in a press statement.</p><p>The commodities regulator added that FTX customer funds were misappropriated by both executives of FTX and Alameda Research “for improper purposes such as luxury real estate purchases, political contributions, and high-risk, illiquid digital asset industry investments.”</p><p>Giving more details, SEC noted that Singh withdrew approximately $6 million from FTX for personal use and expenditure, including for the purchase of a multi-million-dollar house and donations to charitable causes. This happened close to <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank" rel="follow">FTX’s collapse in November 2022</a>.</p><p> Meanwhile, CFTC noted that Singh has agreed to forfeit certain assets he received from FTX and Alamedia Research. This is even as the US Attorney’s Office for the Southern District of New York announced charges against the ex-FTX executive.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

View Details

Document Says OneCoin Founder Ruja Ignatova ‘Killed’ in 2018 in Greece

<p>Documents seen by the Bureau for Investigative Reporting and Data (BIRD) contain an agent report that alleges that Ruja Ignatova ‘CryptoQueen,’ one of two Co-Founders of OneCoin, the multi-billion-dollar cryptocurrency pyramid scheme, was killed on a yacht in Greece in November 2018. Ignatova’s body was allegedly dismembered and tossed into the Ionian Sea.</p><p>According to <a href="https://bird.bg/ruja-ignatova-taki/" target="_blank" rel="follow">the report</a>, the said murder was allegedly executed on behalf of <a href="https://bird.bg/mukesh-chepishev-taki-varbanov-gerb-terrorism/">Christoforos ‘Taki’ Amanatidis</a>, an infamous drug lord. Georgi Georgiev Vasilev, a Bulgarian national and a brother-in-law of Amanatidis, allegedly revealed this during a state of intoxication.</p><p>BIRD said the documents containing the allegations are parts of materials retrieved at the home of a former top Bulgarian cop, Lyubomir Ivanov, who was murdered in March last year. The investigative journalism organisation also linked the agent reports to disciplinary cases of Bulgaria’s Ministry of Interior.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Last year a former chief cop was murdered in Sofia. Documents found in his home states that the fugitive <a href="https://twitter.com/hashtag/OneCoin?src=hash&ref_src=twsrc%5Etfw">#OneCoin</a> founder Ruja <a href="https://twitter.com/hashtag/Ignatova?src=hash&ref_src=twsrc%5Etfw">#Ignatova</a> was murdered on a yacht in Greece in Nov 2018. Her body was dismembered and thrown in the Ionian sea. <a href="https://t.co/6fPgQePFlk">https://t.co/6fPgQePFlk</a> <a href="https://twitter.com/FBI?ref_src=twsrc%5Etfw">@FBI</a> <a href="https://twitter.com/OCCRP?ref_src=twsrc%5Etfw">@OCCRP</a></p>— birdbg (@birdbg2) <a href="https://twitter.com/birdbg2/status/1626522464393080832?ref_src=twsrc%5Etfw">February 17, 2023</a></blockquote><p>“The Prosecutor's Office knows about the documents, but does not consider the documents within the meaning of the Criminal Procedure Code and so far does not investigate either the data on the murder of Ruzha Ignatova…,” BIRD explained in part in its <a href="https://bird.bg/ruja-ignatova-taki/" target="_blank" rel="follow">investigative report</a>, as translated by Google.</p><p>Commenting on the revelation translated from Bulgarian, Crypto Xpose, a Twitter account focused on shedding light on OneCoin, noted that while the alleged murder is “possible, there’s no real proof" that the murder happened.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">I wouldn't take this information as granted that Ruja was killed in November 2018. It's of course possible, but there's no real proof of that. The FBI doesn't usually put dead people on the 10 most wanted list. Also, Bulgaria is Bulgaria...<a href="https://t.co/5rgqZweGY5">https://t.co/5rgqZweGY5</a></p>— Crypto Xpose (@CryptoXpose) <a href="https://twitter.com/CryptoXpose/status/1626783771994251264?ref_src=twsrc%5Etfw">February 18, 2023</a></blockquote><p>Ignatova Mentioned in London Property Purchase</p><p>The new details emerge at the same time reports say Ignatova, who has been <a href="https://www.financemagnates.com/cryptocurrency/news/finnish-authorities-take-aim-onecoin-re-launching-investigation/" target="_blank" rel="follow">on the run since 2017</a>, has <a href="https://www.financemagnates.com/cryptocurrency/onecoin-founder-ruja-ignatova-is-back-after-5-years-in-hiding/" target="_blank" rel="follow">resurfaced as the beneficial owner</a> of a real estate property purchased in Kensington in London. Ignatova is reportedly the owner of a shell company which purchased the property and listed her as a beneficial owner, in accordance with UK rules. However, a BBC report <a href="https://www.bbc.com/news/uk-england-london-64407723" target="_blank" rel="follow">traced the development</a> to prosecutors in the German city of Bielefeld.</p><p>The property was put up for sale by property retailer Knight Frank, initially priced at £12.5 million ($15.5 million) but later reduced to £11 million ($13.24 million). However, following media reports of Ignatova’s connection to the house, the property was delisted.</p><p>A Multi-Billion Dollar Crypto Scam</p><p>Ignatova alongside Sebastian Greenwood launched OneCoin cryptocurrency in 2014 in Sofia, Bulgaria. The coin was promoted as a future ‘Bitcoin killer’ and marketed through global multi-level marketing. As a result, the project was able to garner subscribers from over 175 countries.</p><p>US court documents show that the pyramid scheme boasted as high as three million users during its peak, generating a revenue of about $4 billion between 2014 and 2016. However, prosecutors are trying to get justice for the victims. In May last year, <a href="https://www.financemagnates.com/cryptocurrency/news/onecoin-founder-ruja-ignatova-named-among-europes-most-wanted/" target="_blank" rel="follow">Europol added Ignatova</a> to the list of Europe's most wanted fugitives.</p><p>Furthermore, Ignatova’s Co-Founder, Greenwood, was arrested in July 2018 in Thailand where he was extradited to the United States. He faces up to 20 years in prison when he is <a href="https://www.financemagnates.com/cryptocurrency/onecoin-co-founder-karl-greenwood-pleads-guilty-to-wire-fraud/" target="_blank" rel="follow">sentenced in April this year</a>.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

View Details

OneCoin Founder Ruja Ignatova Is Back after 5 Years in Hiding

<p>Ruja Ignatova, the Founder and mastermind behind the OneCoin crypto fraud, allegedly resurfaced after vanishing for <a href="https://www.financemagnates.com/cryptocurrency/news/finnish-authorities-take-aim-onecoin-re-launching-investigation/" target="_blank" rel="follow">more than five years</a>. Last week's property listing in central London exposed a 42-year-old German citizen of Bulgarian origin.</p><p>Ruja Ignatova, the OneCoine Founder, Leaves a Trace</p><p>According to information first reported by iNews, the name and surname of the 'cryptoqueen' appeared in real estate documents regarding a property in the London suburb of Kensington, England. </p><p>Ignatova purchased the penthouse for her company, but new regulations in the UK require to list the name of the 'beneficial owner'. It forced the criminal to come out of hiding as she had to be officially named on the document alongside her shell firm.</p><p>Prestigious property retailer Knight Frank advertised the £11 million property. However, the listing was removed after media reports showed the connection between the penthouse and the wanted criminal.</p><p>Why is this information so important? It suggests that Ignatova is still alive and that real estate documents might contain clues about her last whereabouts. Even if she cannot be captured, the property could be used to repay some of her victims.</p><p>Watch the recent FMLS22 panel on reimagining the crypto market structure.</p><p>The History of OneCoin</p><p>Ruja Ignatova has become extremely popular with international investigative bodies in recent years. She has made it onto the FBI's list of the ten most wanted criminals and <a href="https://www.financemagnates.com/cryptocurrency/news/onecoin-founder-ruja-ignatova-named-among-europes-most-wanted/" target="_blank" rel="follow">has been named by Europol as one of the most wanted fugitives</a>.</p><p>Ignatova and her business partner Sebastian Greenwood launched the OneCoin cryptocurrency in 2014, advertising it as the future '<a href="https://www.financemagnates.com/terms/b/bitcoin/" class="terms__main-term" id="261088a9-0f41-4202-a73c-31f75ba6bd93" target="_blank">bitcoin</a> killer'. OneCoin turned out to be one of the largest cryptocurrency scams in history, spreading to 175 countries where investors lost an estimated $5 billion.</p><p>According to US court documents, the pyramid scheme's services may have been used by 3 million people at its peak, with total revenue of almost $4 billion between 2014 and 2016.</p><p>Investors were attracted by the vision of high, even tenfold, returns on their initial investment. However, most of them never saw their money again, and Ignatova and Greenwood disappeared in 2017. The accomplice was arrested in July 2018 in Thailand and extradited to the United States. <a href="https://www.financemagnates.com/cryptocurrency/onecoin-co-founder-karl-greenwood-pleads-guilty-to-wire-fraud/" target="_blank" rel="follow">He will be sentenced in April</a> this year and faces 20 years in prison.</p><p>A year later, Ignatova's nephew, <a href="https://www.financemagnates.com/cryptocurrency/news/onecoin-investors-settle-with-co-mastermind-konstantin-ignatov/" target="_blank" rel="follow">Konstantin Ignatova</a>, who tried to run a further financial pyramid scheme after his sister's escape, was also put behind bars. He will be sentenced next month and is charged with <a href="https://www.financemagnates.com/terms/m/money-laundering/" class="terms__secondary-term" id="f30ffb65-351e-44d6-9dae-0714f08b59b2" target="_blank">money laundering</a> and fraud conspiracy.</p><p>In 2020, the US court convicted Mark Scott, OneCoin's former lawyer. <a href="https://www.financemagnates.com/cryptocurrency/news/onecoin-lawyer-mark-scott-banned-from-practicing-law-in-new-york-state/" target="_blank" rel="follow">Scott allegedly helped to launder $400 million</a> of Ignatova's fraudulently acquired money and received more than $50 million in commission for his involvement. </p> This article was written by Damian Chmiel at www.financemagnates.com.

View Details

US Charges Bitzlato's Founder with Processing $700M in Crypto for Criminals

<p>The United States Department of Justice (DOJ) has charged Anatoly Legkodymov, the founder of China-based cryptocurrency exchange, Bitzlato, with processing over $700 million of illicit funds in cryptocurrency for darknet criminals between 2018 and 2022. </p><p>DOJ disclosed on Wednesday that Legkodymov, a 40-year-old Russian national who resided in China, was arrested on Tuesday night in Miami by agents of the Federal Bureau of Investigation. The <a href="https://www.financemagnates.com/tag/department-of-justice/" target="_blank" rel="follow">federal executive department</a> also accused Legkodymov, who is the majority owner of the Hong Kong-registered crypto exchange, of operating an unlicensed money transmitting busienss in the country.</p><p>The Justice Department noted that the founder ran the exchange from Miami in 2022 and 2023, adding that the platform “did substantial business" with customers in the United States. The crypto exchange also generated high internet traffic from the United States, gaining as much as over 250 million visits in July last year.</p><p>The department noted that Legkodymov was scheduled to be arraigned before a Florida court on Wednesday and could spend up to five years in prison if found guilty.</p><p>Watch the recent FMLS22 session on the future of cryptocurrencies.</p><p>DOJ Accuses Bitzlato of Working with Hydra Market Criminals</p><p>According to DOJ, Bitzlato operated with a weak <a href="https://www.financemagnates.com/terms/k/know-your-customer-kyc/" class="terms__main-term" id="efaf9032-afc0-45c1-b452-1f3796cbbd3d" target="_blank">know-your-customer (KYC</a>) procedures and marketed its platform as a “no-questions-asked” crypto exchange to criminals, generating “hundreds of millions of dollars’ worth of deposits as a result.”</p><p>“Bitzlato’s largest counterparty in cryptocurrency transactions was Hydra Market (Hydra), an anonymous, illicit online marketplace for narcotics, stolen financial information, fraudulent identification documents, and <a href="https://www.financemagnates.com/tag/money-laundering/" target="_blank" rel="follow">money laundering services</a> that was the largest and longest running darknet market in the world,” DOJ said.</p><p>Furthermore, the department noted that Bitzlato processed over $700 million in cryptocurrency for Hydra users until the Russia-based darknet marketplace’s operation <a href="https://www.financemagnates.com/cryptocurrency/news/us-germany-sanction-russian-darknet-marketplace-hydra-seize-bitcoins/" target="_blank" rel="follow">was shut down</a> in April last 2022. The crypto exchange got over $15 million in ransomware proceeds during the period, DOJ said. </p><p>Meanwhile, the federal executive department pointed out that the US Department of the Treasury’s Financial Crimes Enforcement Network is also taking simultaneous enforcement actions on the case. In addition, DOJ said French authorities are working on the case in partnership with <a href="https://www.financemagnates.com/tag/europol/" target="_blank" rel="follow">the European Union Agency for Law Enforcement Cooperation</a> and partners from Portugal, Spain and Cyprus. The authorities have already "dismantled Bitzlato’s digital infrastructure, seized [its] cryptocurrency, and took other enforcement actions."</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

View Details

US Charges Bitzlato Founder with Processing $700M in Crypto for Criminals

<p>The United States Department of Justice (DOJ) has charged Anatoly Legkodymov, the Founder of China-based cryptocurrency exchange, Bitzlato, with processing over $700 million of illicit funds in cryptocurrency for darknet criminals between 2018 and 2022. </p><p>The DOJ disclosed on Wednesday that Legkodymov, a 40-year-old Russian national who resided in China, was arrested on Tuesday night in Miami by agents of the Federal Bureau of Investigation. Additionally, the <a href="https://www.financemagnates.com/tag/department-of-justice/" target="_blank" rel="follow">federal executive department</a> accused Legkodymov, who is the majority owner of the Hong Kong-registered crypto exchange, of operating an unlicensed money-transmitting business in the country.</p><p>The Justice Department noted that the founder ran the exchange from Miami in 2022 and 2023, adding that the platform “did substantial business" with customers in the United States. Moreover, the crypto exchange generated high internet traffic from the United States, gaining as much as over 250 million visits in July last year.</p><p>The department noted that Legkodymov was scheduled to be arraigned before a Florida court on Wednesday and could spend up to five years in prison if found guilty.</p><p>Watch the recent FMLS22 session on the future of cryptocurrencies.</p><p>DOJ Accuses Bitzlato of Working with Hydra Market Criminals</p><p>According to the DOJ, Bitzlato operated with a weak <a href="https://www.financemagnates.com/terms/k/know-your-customer-kyc/" class="terms__main-term" id="efaf9032-afc0-45c1-b452-1f3796cbbd3d" target="_blank">know-your-customer (KYC</a>) procedures and marketed its platform as a “no-questions-asked” crypto exchange to criminals, generating “hundreds of millions of dollars’ worth of deposits as a result.”</p><p>“Bitzlato’s largest counterparty in cryptocurrency transactions was Hydra Market (Hydra), an anonymous, illicit online marketplace for narcotics, stolen financial information, fraudulent identification documents, and <a href="https://www.financemagnates.com/tag/money-laundering/" target="_blank" rel="follow">money laundering services</a> that was the largest and longest running darknet market in the world,” the DOJ said.</p><p>Furthermore, the department noted that Bitzlato processed over $700 million in cryptocurrency for Hydra users until the Russia-based darknet marketplace’s operation <a href="https://www.financemagnates.com/cryptocurrency/news/us-germany-sanction-russian-darknet-marketplace-hydra-seize-bitcoins/" target="_blank" rel="follow">was shut down</a> in April last 2022. The crypto exchange got over $15 million in ransomware proceeds during the period, the DOJ said. </p><p>Meanwhile, the federal executive department pointed out that the US Department of the Treasury’s Financial Crimes Enforcement Network is taking simultaneous enforcement actions on the case. In addition, the DOJ said French authorities are working on the case in partnership with <a href="https://www.financemagnates.com/tag/europol/" target="_blank" rel="follow">the European Union Agency for Law Enforcement Cooperation</a> and partners from Portugal, Spain and Cyprus. The authorities have already "dismantled Bitzlato’s digital infrastructure, seized [its] cryptocurrency, and took other enforcement actions."</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

View Details

New York Charges Celsius Network Co-Founder Alex Mashinksy with Fraud

<p class="MsoNormal">Letitia James, the Attorney General of the State of New York, has charged Alex Mashinsky, the Co-Founder of bankrupt crypto lender Celsius Network, with fraud.</p><p class="MsoNormal">In a lawsuit <a href="https://ag.ny.gov/sites/default/files/mashinsky_complaint.pdf" target="_blank" rel="follow">filed</a> before a supreme court in the County of New York on Thursday, James accused the former CEO of “defrauding hundreds of thousands of investors, including more than 26,000 New Yorkers, out of billions of dollars worth of cryptocurrency.”</p><p class="MsoNormal">“Mashinsky repeatedly claimed that Celsius made safe, low-risk investments and only lent assets to credible and reputable entities. However, investors’ assets were routinely exposed to high-risk counterparties and strategies, many of which resulted in losses that Mashinsky concealed from investors,” James said in <a href="https://ag.ny.gov/press-release/2023/attorney-general-james-sues-former-ceo-celsius-cryptocurrency-platform-defrauding" target="_blank" rel="follow">a statement</a>.</p><p>Watch the recent FMLS22 session on cryptocurrency with participation from Dr. Lisa Cameron, Member of Parliament, UK House of Commons.</p><p class="MsoNormal text-align-justify">New York Accuses Celsius of Leaving Investors in ‘Financial Ruin’</p><p class="MsoNormal">The New York Attorney General also accused Mashinsky of mispresenting and hiding Celsius’ worsening financial condition from its investors even as it was losing “hundreds of millions of dollars of assets in risky investments.” She added that Mashinksy has left many investors in "financial ruin” as a result. </p><p class="MsoNormal">In her filing before the court, the chief law officer asked the court to permanently bar Mashinsky from dealing in any business relating to the issuance, offer or sale of securities or commodities in New York. James also wants the court to stop the ex-Celsius CEO from serving as a director or officer or any New York-based firm. </p><p class="MsoNormal">In addition, the Attorney General asked the court to order Mashinksy to give up profits obtained from the failed crypto lender business as well as return investor funds with additional payment for damages.</p><p class="MsoNormal text-align-justify">The Collapse of Celsius Network</p><p class="MsoNormal">In July last year, Celsius Network <a href="https://www.financemagnates.com/cryptocurrency/news/crypto-lender-celsius-files-for-bankruptcy-in-new-york/" target="_blank" rel="follow">filed for Chapter 11 bankruptcy</a> before a New York court over a month after it <a href="https://www.financemagnates.com/cryptocurrency/news/celsius-suspends-crypto-withdrawals-due-to-market-volatility/" target="_blank" rel="follow">paused withdrawals</a> on its platform, citing volatile markets. </p><p class="MsoNormal">The crypto lender’s failure came in the aftermath of <a href="https://www.financemagnates.com/cryptocurrency/terra-luna-how-these-7-wallets-brought-the-ecosystem-to-its-knees/" target="_blank" rel="follow">the Terra-LUNA collapse</a> which also saw the death of <a href="https://www.financemagnates.com/cryptocurrency/binanceus-wants-to-acquire-bankrupt-crypto-lending-platform-voyager/" target="_blank" rel="follow">Voyager Digital</a> and <a href="https://www.financemagnates.com/cryptocurrency/news/three-arrows-capital-gets-liquidation-order-from-bvi-court/" target="_blank" rel="follow">Three Arrow Capital</a>. The collapse of Celsius Network was followed by <a href="https://www.financemagnates.com/cryptocurrency/news/celsius-network-reportedly-faces-us-federal-investigation/" target="_blank" rel="follow">a barrage of investigations</a> from US federal and state regulators. </p> This article was written by Solomon Oladipupo at www.financemagnates.com.

View Details

New York Charges Celsius Network's Co-Founder Alex Mashinksy with Fraud

<p class="MsoNormal">Letitia James, the Attorney General of the State of New York, has charged Alex Mashinsky, the Co-Founder of a bankrupt crypto lender Celsius Network, with fraud.</p><p class="MsoNormal">In a lawsuit <a href="https://ag.ny.gov/sites/default/files/mashinsky_complaint.pdf" target="_blank" rel="follow">filed</a> before a supreme court in the County of New York on Thursday, James accused the former CEO of “defrauding hundreds of thousands of investors, including more than 26,000 New Yorkers, out of billions of dollars worth of cryptocurrency.”</p><p class="MsoNormal">“Mashinsky repeatedly claimed that Celsius made safe, low-risk investments and only lent assets to credible and reputable entities. However, investors’ assets were routinely exposed to high-risk counterparties and strategies, many of which resulted in losses that Mashinsky concealed from investors,” James said in <a href="https://ag.ny.gov/press-release/2023/attorney-general-james-sues-former-ceo-celsius-cryptocurrency-platform-defrauding" target="_blank" rel="follow">a statement</a>.</p><p>Watch the recent FMLS22 session on cryptocurrency with participation from Dr Lisa Cameron, a Member of Parliament in the UK House of Commons.</p><p class="MsoNormal text-align-justify">New York Accuses Celsius of Leaving Investors in ‘Financial Ruin’</p><p class="MsoNormal">Additionally, the New York Attorney General accused Mashinsky of mispresenting and hiding Celsius’ worsening financial conditions from its investors even as it was losing “hundreds of millions of dollars of assets in risky investments.” She added that Mashinksy had left many investors in "financial ruin” as a result. </p><p class="MsoNormal">In her filing before the court, the Chief Law Officer asked the court to permanently bar Mashinsky from dealing in any business relating to the issuance, offer or sale of securities or commodities in New York. Moreover, James wants the court to stop the ex-Celsius CEO from serving as a Director or officer or any New York-based firm. </p><p class="MsoNormal">In addition, the Attorney General asked the court to order Mashinksy to give up profits obtained from the failed crypto lender business as well as return investor funds with additional payment for damages.</p><p class="MsoNormal text-align-justify">The Collapse of Celsius Network</p><p class="MsoNormal">In July last year, Celsius Network <a href="https://www.financemagnates.com/cryptocurrency/news/crypto-lender-celsius-files-for-bankruptcy-in-new-york/" target="_blank" rel="follow">filed for Chapter 11 bankruptcy</a> before a New York court over a month after it <a href="https://www.financemagnates.com/cryptocurrency/news/celsius-suspends-crypto-withdrawals-due-to-market-volatility/" target="_blank" rel="follow">paused withdrawals</a> on its platform, citing volatile markets. </p><p class="MsoNormal">The crypto lender’s failure came in the aftermath of <a href="https://www.financemagnates.com/cryptocurrency/terra-luna-how-these-7-wallets-brought-the-ecosystem-to-its-knees/" target="_blank" rel="follow">the Terra-LUNA collapse</a> which saw the demise of <a href="https://www.financemagnates.com/cryptocurrency/binanceus-wants-to-acquire-bankrupt-crypto-lending-platform-voyager/" target="_blank" rel="follow">Voyager Digital</a> and <a href="https://www.financemagnates.com/cryptocurrency/news/three-arrows-capital-gets-liquidation-order-from-bvi-court/" target="_blank" rel="follow">Three Arrow Capital</a>. The collapse of Celsius Network was followed by <a href="https://www.financemagnates.com/cryptocurrency/news/celsius-network-reportedly-faces-us-federal-investigation/" target="_blank" rel="follow">a barrage of investigations</a> from US federal and state regulators.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

View Details

OneCoin's Co-Founder Karl Greenwood Pleads Guilty to Wire Fraud

<p class="MsoNormal">Karl Greenwood, the Co-Founder of OneCoin, the multi-billion dollar cryptocurrency pyramid scheme, has pleaded guilty to charges of wire fraud and money laundering in connection with his role in the fraudulent crypto project. The charges before him carry a maximum potential sentence of 20 years each, the Department of Justice (DOJ) said on Friday.</p><p class="MsoNormal">Karl Greenwood Arrested and Convicted of Fraud</p><p class="MsoNormal text-align-justify">Greenwood, who was arrested in Thailand in July 2018 and extradited to the United States, confessed to the charges in a Manhattan federal court before Judge Edgardo Ramos who accepted the guilty plea. He is to be sentenced by Judge Ramos on April 5, 2023, the DOJ said.</p><p class="MsoNormal">“This guilty plea by the Co-Founder of <a href="https://www.financemagnates.com/tag/onecoin/" target="_blank" rel="follow">OneCoin</a> caps a week at the Southern District of New York (SDNY) that sends a clear message that we are coming after all those who seek to exploit the cryptocurrency ecosystem through fraud, no matter how big or sophisticated you are,” Damian Williams, the United States Attorney for SDNY, said in the DOJ statement.</p><p class="MsoNormal">Ruja 'Cryptoqueen' Ignatova Remains at Large in OneCoin Fraud</p><p class="MsoNormal">According to the DOJ, Ruja Ignatova, who co-founded OneCoin alongside Greenwood, remains at large. The declaration comes eight months after Ignatova, also known as “the Cryptoqueen” <a href="https://www.financemagnates.com/cryptocurrency/news/onecoin-founder-ruja-ignatova-named-among-europes-most-wanted/">was included</a> in the list of Europe’s most wanted fugitives by Europol. The run-away Co-Founder was added to the Federal Bureau of Investigation’s (FBI) Top 10 Most Wanted List earlier in June. </p><p class="MsoNormal">On October 12, 2017, the United States charged Ignatova with fraud and money laundering at the US District Court for the SDNY. Moreover, it issued a federal warrant for her arrest. In addition, the FBI has offered to pay $100,000 to anyone with information that leads to her arrest. </p><p class="MsoNormal">However, since Ignatova travelled on a commercial flight from Sofia, Bulgaria to Athens, Greece on October 25, 2017, she has not been seen publicly, the <a href="https://www.financemagnates.com/tag/department-of-justice/" target="_blank" rel="follow">DOJ</a> noted.</p><p class="MsoNormal">OneCoin Backstory</p><p class="MsoNormal">Greenwood and Ignatova founded OneCoin in 2014 in Sofia, Bulgaria from where they marketed and sold the fraudulent scheme through global multi-level marketing (MLM). The DOJ noted that as a result of misrepresentations the Co-Founders and others had made about OncCoin, victims across the globe invested over four billion dollars in the scheme.</p><p class="MsoNormal">“This MLM structure influenced the rapid growth of the OneCoin member network. Indeed, according to OneCoin’s promotional materials, over three million people invested in fraudulent cryptocurrency packages. OneCoin records show that, between the fourth quarter of 2014 and the fourth quarter of 2016 alone, OneCoin generated €4.037 billion in sales revenue and earned 'profits' of €2.735 billion,” the DOJ explained.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

View Details

Oracle to Pay $23M to Settle Bribery Charges against Asian Subsidiaries

<p class="MsoNormal">Oracle Corporation, a Texas-headquartered American software and technology company, has agreed to pay more than $23 million to settle bribery charges against its subsidiaries in Turkey, the United Arab Emirates (UAE) and India. </p><p class="MsoNormal">The US <a href="https://www.financemagnates.com/terms/s/securities-and-exchange-commission-sec/" target="_blank" id="3718b4df-fc5f-479a-861e-f52759439c15_1" class="terms__main-term">Securities and Exchange Commission (SEC</a>) on Monday disclosed that it charged <a href="https://www.financemagnates.com/tag/oracle/" target="_blank">Oracle</a> of violating the country’s Foreign Corrupt Practices Act (FCPA) through its subsidiaries.</p><p class="MsoNormal">The FCPA prohibits a US citizen or company from offering, paying, or promising to pay money to any foreign official in order to secure or retain a business deal.</p><p class="MsoNormal">However, <a href="https://www.financemagnates.com/tag/securities-and-exchange-commission/" target="_blank">the American regulator</a> said its investigation found that the subsidiaries violated the Act by creating and using slush funds to bribe foreign officials in return for business between 2016 and 2019.</p><p class="MsoNormal">The investigation was conducted with the assistance of the Capital Markets Board of Turkey, the Emirates Securities and Commodities Authority, and the Securities and Exchange Board of India.</p><p class="MsoNormal">The regulator explained, “According to the SEC’s order, Oracle subsidiaries in Turkey and UAE also used the slush funds to pay for foreign officials to attend technology conferences in violation of Oracle policies and procedures. </p><p class="MsoNormal">“The order found that in some instances, employees of the Turkey subsidiary used these funds for the officials’ families to accompany them on international conferences or take side trips to California.”</p><p class="MsoNormal">SEC in the statement noted that Oracle neither admitted or denied the SEC’s findings. </p><p class="MsoNormal">However, the company has “agreed to cease and desist from committing violations of the anti-bribery, books and records, and internal accounting controls provisions of the FCPA,” SEC said.</p><p class="MsoNormal">The technology company also agreed to pay a $23 million <a href="https://www.financemagnates.com/tag/settlement/" target="_blank">settlement</a> that comprises approximately $8 million in disgorgement and a $15 million penalty.</p><p class="MsoNormal">Speaking on the charges, Charles Cain, the SEC’s FCPA Unit Chief, noted that the case highlighted the critical importance of effective internal accounting controls across all of a company’s operations.</p><p class="MsoNormal">“The creation of off-book slush funds inherently gives rise to the risk that those funds will be used improperly, which is exactly what happened here at Oracle’s Turkey, UAE, and India subsidiaries,” added Cain.</p><p class="MsoNormal text-align-justify">Previous Violation of FCPA</p><p class="MsoNormal">The new case marks the second time the SEC has charged Oracle for violating provisions of the FCPA. </p><p class="MsoNormal">In 2012, the SEC charged Oracle of violating the FCPA by failing to prevent its Indian subsidiary from secretly setting aside money off the company's books.</p><p class="MsoNormal">SEC alleged that the fund was eventually used to make unauthorized <a href="https://www.financemagnates.com/terms/p/payments/" target="_blank" id="f1d2a713-da14-4a6b-8fcd-e8f360d07f45_1" class="terms__secondary-term">payments</a> to phony vendors in India. </p><p class="MsoNormal text-align-justify">Oracle paid $2 million at the time to settle the charges.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

View Details

US SEC Charges 4 Co-founders, 7 Others in $300M Crypto Pyramid Scheme

<p class="MsoNormal text-align-justify">The United States Securities and Exchange Commission (SEC) has charged 11 individuals before the United States District Court in the Northern District of Illinois for alleged fraud.</p><p class="MsoNormal text-align-justify">Four of these 11 individuals were the Co-Founders of Forsage, a project the SEC described as a “fraudulent crypto pyramid and <a href="https://www.financemagnates.com/tag/ponzi/" target="_blank">ponzi scheme</a>.”</p><p class="MsoNormal text-align-justify">The SEC noted that the 11 individuals raised over $300 million from retail investors from around the world through the scheme.</p><p class="MsoNormal text-align-justify">The US securities market regulator disclosed these on Monday in <a href="https://www.sec.gov/news/press-release/2022-134">a press statement</a> published on its website. </p><p class="MsoNormal text-align-justify">Carolyn Welshhans, the acting Chief of the SEC’s Crypto Assets and Cyber Unit, noted that Forsage was “launched on a massive scale." </p><p class="MsoNormal text-align-justify">Welshhans added that the scheme was "aggressively marketed to investors.”</p><p class="MsoNormal text-align-justify">In addition, the SEC noted that the four founders of the scheme were last known to be residing in Russia, the Republic of Georgia and Indonesia. </p><p class="MsoNormal">The watchdog further disclosed that three of the charged 11 individuals were promoters based in the United States.</p><p class="MsoNormal">These promoters were paid by the founders to give endorsement to 'the fraudulent blockchain scheme' on its website and social media platforms.</p><p class="MsoNormal text-align-justify">Other persons charged were members of a promotional group called Crypto Crusade, <a href="https://www.financemagnates.com/tag/sec/" target="_blank">the SEC</a> said.</p><p class="MsoNormal text-align-justify">This self-styled Crypto Crusade operated from at least five different states in the US, the SEC explained. </p><p class="MsoNormal text-align-justify"> The watchdog added that the platform was the biggest promotional group for <a href="https://www.financemagnates.com/thought-leadership/types-of-forex-scams-and-how-to-spot-them/" target="_blank">the pyramid scheme</a>.</p><p class="MsoNormal text-align-justify">The Background</p><p class="MsoNormal text-align-justify">According to the SEC, in January 2020, the four founders, Vladimir Okhotnikov, Jane Doe or Lola Ferrari, Mikhail Sergeev and Sergey Maslakov, inaugurated Forsage. </p><p class="MsoNormal">Forsage.io functioned as a website that enabled millions of retail investors to initiate transactions using smart contracts run on Blockchains, such as Ethereum and Binance.</p><p class="MsoNormal text-align-justify">The SEC also alleged that Forsage for over two years ran a pyramid scheme that paid members for recruiting others into the circle. </p><p class="MsoNormal">According to the press statement, the Philippine SEC issued a cease-and-desist to Forsage in September 2020.</p><p class="MsoNormal text-align-justify">On top of that, the Montana Commissioner of Securities and Insurance issued another in March 2021 to deaf ears, the SEC said. </p><p class="MsoNormal text-align-justify">Instead, the watchdog pointed out Forsage remained floated even as its founders kept denying the claims through multiple YouTube videos.</p><p class="MsoNormal">"Fraudsters cannot circumvent the federal securities laws by focusing their schemes on smart contracts and blockchains,” Welshhans said.</p><p class="MsoNormal text-align-justify">The SEC asked that the court grant “injunctive relief, disgorgement and civil penalties” against Forsage.io.</p><p class="MsoNormal text-align-justify">Other than the four founders, the SEC said it charged the following persons with violation of the registration and anti-fraud provisions of the federal securities laws: Cheri Bowon (Missipi), Ronald Deering (Idaho), Samuel Ellis (Louisville) and Mark Hamlin (Henricho).</p><p class="MsoNormal text-align-justify">Others are Carlos Martinez (Chicago), Alisa Shepherd (Florida), Sarah Theissen (Wisconsin) and Sarah Theissen (Winconsin). </p><p class="MsoNormal">The SEC explained: “Without admitting or denying the allegations, two of the defendants, Ellis and Theissen, agreed to settle the charges and to be permanently enjoined from future violations of the charged provisions and certain other activities. </p><p class="MsoNormal text-align-justify">“Additionally, Ellis agreed to pay disgorgement and civil penalties, and Theissen will be required to pay disgorgement and civil penalties as determined by the court. Both settlements are subject to court approval."</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

View Details

Mining Capital Coin CEO Indicted for $62 Million Crypto Scam

The US Department of Justice announced on Friday that the CEO of Mining Capital Coin, dubbed ‘MCC,’ a crypto mining and investment platform, has been charged for allegedly orchestrating a $62 milli...

View Details

Scammers Steal $1.6m via New YouTube Crypto Giveaway

Through yet another fake YouTube cryptocurrency giveaway, some scammers have made away with more than $1,680,000 from their victim's crypto wallets after promising immediate high returns on cryptoc...

View Details

IGObit Coin Project Representative Convicted of Crypto Scheme

The US Attorney for the Southern District of New York announced on Friday that it convicted Asa Saint Clair after a one-week trial for a crypto scheme that defrauded over 60 victims.

View Details

CFTC Files Charges against Four Operators of $44 Million Crypto Ponzi

The US Commodity Futures Trading Commission (CFTC) announced on Tuesday that it had filed a civil enforcement action to charge four operators for running a $44 million Bitcoin Ponzi scheme.

View Details

US Authorities Charge Siblings in $124 Million Crypto Fraud Case

The US Securities and Exchange Commission (SEC) announced on Tuesday that it had charged John and JonAtina (Tina) Barksdale with defrauding thousands of retail investors out of more than $124 milli...

View Details