Bitcoin 

Eike Batista Arrested on Suspicion of Money Laundering Via Bitcoin

Wealthy businessman Eike Batista has been arrested by federal police on account of suspected money laundering, which they believe he achieved by trading Bitcoin (BTC) on his wife’s behalf. The details of Batista’s arrest were reported by Cointelegraph Brasil on Aug. 8. Prosecutors reportedly found notes indicating that he had traded BTC for his wife, who is not currently being investigated. The Federal Prosecutor wrote: “Although the suspect’s wife, Mrs. Flávia, is not being investigated, it is quite possible, given the evidence of such a usual means of money laundering…

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Ethereum 

Alleged Silk Road Drug Dealer Arrested in the United States

United States Attorney for the Southern District of New York Geoffrey S. Berman announced the arrest of alleged dark web drug dealer Hugh Brian Haney in a press release published on July 18. Per the release, Haney has been charged with money laundering. He allegedly used cryptocurrency to launder more than $19 million of profits earned selling illegal drugs on the now-defunct darknet market Silk Road. Berman commented to the development: “Today’s arrest should be a warning to dealers peddling their drugs on the dark web that they cannot remain…

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Bitcoin 

Ex-CEO of BTC-e Exchange’s Spin-Off WEX Is Arrested in Italy

Former CEO of now-defunct crypto exchange WEX, a spin-off of controversial BTC-e exchange, was arrested in Italy. No official statement to date Dmitri Vasilyev, who reopened BTC-e exchange as WEX.nz in September 2017, was detained by Italian prosecutors. While no official statement has been disclosed to date, BBC Russia reported the arrest on July 19. In the report, the publication cited an unnamed friend of Vasilev and two anonymous WEX investors. The reason for detention remains unclear. In April 2019, Vasilyev became the subject of a criminal investigation by the…

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Bitcoin 

Ex-Microsoft Employee Arrested for $10 Million Crypto Theft

A former employee at Microsoft has been arrested for a scheme to steal $10 million in cryptocurrency, the Associated Press (AP) reported on July 17. Insider Schemes The man — a 25-year old Ukrainian national, Volodymyr Kvashuk, allegedly used the ill-gotten proceeds to buy a $160,000 Tesla car and a $1.7 million lakefront home. During the seven months of his scheme, $2.8 million was found to have been transferred into his bank accounts. Specifically, Kvashuk is accused of having stolen cryptocurrency gift cards that were redeemable against Microsoft products and…

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Blockchain 

Two Arrested in Israel After $1.5M Moved

One of the most prominent crypto cybercrimes in recent years took a dramatic turn on June 23, when two Israeli brothers were arrested in connection with the 2016 Bitfinex hack and other crypto-related phishing attacks. Just shy of 120,000 Bitcoin (BTC) were stolen in the attack back in 2016, an amount initially worth $72 million, though after Bitcoin’s meteoric rise in the summer of 2019, the value of the stolen funds now amount to around $1.4 billion. Speaking to Finance Magnates, an Israeli police spokesperson said that Eli and Assaf…

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Bitcoin 

Two Israeli Brothers Arrested for Hack of Bitfinex Crypto Exchange

Two Israeli brothers have been arrested in connection with the hack of cryptocurrency exchange Bitfinex and other crypto-related phishing attacks, finance news outlet Finance Magnates reports on June 23. An Israeli police spokesperson reportedly told Finance Magnates that Eli Gigi and his younger brother Assaf Gigi netted tens of millions of dollars. The two are suspected of being responsible for long-term systematic theft of cryptocurrencies by maliciously obtaining access to other users’ accounts. The two allegedly created credential-stealing clones of major online cryptocurrency exchanges and wallets and sent links to…

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Cryptocurrency 

OneCoin Leader Arrested in New York

US prosecutors have arrested one leader of the OneCoin project for stealing billions from investors through the alleged pyramid scheme. Ruja Ignatova and Konstantin Ignatov have been indicted by the State of New York for wire fraud, securities fraud, and money laundering. Ignatov was arrested this week, however, Ignatova remains at large. The pair defrauded investors out of “billions of dollars” using fake cryptocurrency. OneCoin Prosecutors are calling the OneCoin project a pyramid scheme whereby members work on a commissions basis and try to recruit other members to the project.…

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Bitcoin 

Hong Kong Entrepreneur Who ‘Made It Rain’ from High-Rise Arrested for Crypto Mining Fraud

A purported Bitcoin millionaire (BTC) who was previously involved in “making it rain cash” on the streets of Hong Kong, has reportedly been arrested for mining-related fraud, the South China Morning Post reports Thursday, Feb. 28. A 25-year old businessman named Wong Ching-kit and his 20-year-old colleague have purportedly been arrested by Commercial Crime Bureau officers at their office in Hong Kong. They are reportedly being held in custody for conspiracy to defraud investors by selling them cryptocurrency mining machines. Details on how or why these miner-related sales were considered…

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Bitcoin 

Suspects Arrested for Stealing Electricity in Crypto Mining Operation

In the German city of Klingenthal, Saxony, police have arrested a group of suspects for stealing electricity to operate a cryptocurrency mining farm, Cointelegraph auf Deutsch reports Feb. 6. Police officers reportedly tracked down a system of 49 computers operating in the premises of former electrical services company PGH Elektro. Since at least 2017, the mining farm has reportedly consumed as much electricity as 30 households, with the damage for the affected electricity supplier estimated to around 220,000 euros ($250,053). Per local news site FreiePresse, 30 of the 49 computers…

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Bitcoin 

Fifteen Alleged Operators of $8 Million Crypto Scam Arrested in Taiwan

Police in New Taipei, Taiwan, have arrested fifteen suspects for allegedly running a cryptocurrency scam that earned them millions of dollars, English-language local media Focus Taiwan reports on Jan. 26. According to the article, the chief of the Criminal Investigation Bureau (CIB) Li Chi-hsun said at a press conference that the fifteen suspects — including the alleged leader surnamed Lin — have been arrested in two separate raids carried out on Jan. 9 and Jan. 17. The arrested suspects have been reportedly charged with fraud, and the case has been…

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