Blockchain 

US SEC Adds Fraud to List of Charges Against ‘Crypto’ Firm Longfin

The United States Securities and Exchange Commission (SEC) has filed fraud charges against supposed cryptocurrency firm Longfin Corp. and its CEO Venkata S. Meenavalli, according to a press release on June 5. Longfin saw a massive jump in its share price in 2017 when it claimed that it had redirected its business model toward blockchain technology. The associate director of the Division of Enforcement, Anita B. Bandy, summarized the allegations as such: “In our complaint against Longfin and Meenavalli and our amended complaint against Altahawi, we allege a multi-pronged fraud…

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Bitcoin 

US DoJ Charges Group of Individuals Who Stole $2.5 Mln in Crypto Via SIM Swapping

The United States Department of Justice released a fifteen-count indictment on May 9 that charges a hacking group labeled “The Community” with SIM swapping in order to steal cryptocurrencies. U.S. Attorney Matthew Schneider and his colleague from the U.S. Immigration and Customs Enforcement Angie Salazar announced the charges in the Eastern District of Michigan. Per Salazar, the investigation was led by Homeland Security Investigations on two continents. According to the indictment, five Americans and an Irishman are charged with conspiracy to commit wire fraud, wire fraud and aggravated identity theft.…

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Bitcoin 

New York District Attorney Charges Two for Shadow Banking Crypto Companies

The Southern District of New York Attorney has charged an Arizona man and Israeli woman for allegedly shadow banking cryptocurrency companies, according to an official announcement published on April 30. Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the arrest of Reginald Fowler for allegedly operating an unlicensed money transferring business and bank fraud. His purported co-conspirator Ravid Yosef has also been charged with bank fraud and is still at large, according to the announcement. In 2018, the accused allegedly worked for several…

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Bitcoin 

SEC Charges ICO With Selling Unregistered Securities After Startup Self-Reports

The United States Securities and Exchange Commission (SEC) has charged crypto firm Gladius Network with selling unregistered securities after the company self-reported to the commission, an SEC press release reveals on Feb. 20. Gladius reportedly raised approximately $12.7 million in cryptocurrency during its initial coin offering (ICO) in late 2017, after the SEC had warned that tokens offered in such sales can be classified as securities under U.S. law. The commission specifies that the startup did not register its tokens with the agency and its “ICO did not qualify for…

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Bitcoin 

Florida Appeals Court Reinstates Felony Charges for Unregistered Bitcoin Sale

A United States appellate court in the state of Florida has reinstated charges against a man who sold Bitcoin (BTC) to an undercover police officer, local media Miami Herald reports on Jan. 30. According to the report, the Third District Court of Appeal ruled that a judge who dismissed charges against the defendant, Michell Espinoza, was wrong. Espinoza is a website designer who was charged with allegedly transmitting and laundering $1,500 worth of BTC without a money transmitter license. At the initial trial in a Miami-Dade circuit court, the defense…

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Bitcoin 

AriseBank Founders to Pay $2.7 Million in Fines to Settle ICO Fraud Charges

  A United States federal court has ordered two executives from crypto firm AriseBank to pay nearly $2.7 million in fines, according to a U.S. Securities Exchange Commission (SEC) announcement Dec. 12. The ruling follows an investigation by the SEC, which found that AriseBank was  operating a fraudulent Initial Coin Offering (ICO). AriseBank CEO Jared Rice was arrested by the Federal Bureau of Investigation (FBI) on Nov. 28 on charges of defrauding hundreds of investors of over $4 million. Rice allegedly falsely claimed that the bank could offer customers “FDIC-insured…

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Cryptocurrency 

SEC Charges DJ Khaled and Floyd Mayweather for ICO Promotions

Nobody gets away with fraud in the SEC’s eyes. The latest pair to be hit with SEC charges include pro-boxer Floyd Mayweather and music producer DJ Khaled. SEC Charges Mayweather and Khaled The Securities and Exchange Commission charged the pair with the improper promotion of initial coin offerings or ICOs for cryptocurrencies. Neither party revealed to investors that they were, in fact, paid large sums of money to promote certain ICOs. According to CNBC, a settlement announced Thursday disclosed the charges. According to the settlement, Mayweather never spoke of a $100,000 promotional…

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Bitcoin 

Further Charges Levelled at Suspects in Alleged Cryptocurrency Investment Scam

Police in the northern Indian city of Chandigarh have filed a chargesheet against four suspects accused of scamming a victim out of ₹6-10 crore ($0.8 – 1.4 million) in a cryptocurrency investment fraud, local English-language broadsheet the Times of India reports Nov. 22. b. The four accused are the main suspect, Amit Bhardwaj, his brother, Vivek Bharadwaj, Pankaj Adlakha, and Hemant Bhope. According to the Times of India, an earlier chargesheet against two men alleged to have “direct links” with A. Bhardwaj had been filed in the city of Delhi.…

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