Blockchain 

Judge Rejects Multimillion Dollar Asset Plea in Crypto Fraud Case

A Supreme Court judge in British Columbia (BC), Canada, has denied a motion to set aside an asset freeze, which was requested by the defendants in a multimillion dollar cryptocurrency fraud case. The defendants had filed to set aside an interim preservation order that was issued by the British Columbia Civil Forfeiture Office in order to prevent case-related assets from being sold or accumulating debt. Vancouver news daily The Province reported the ruling on Aug. 19. According to the report, the defendants, Lisa Angela Cheng and Kevin Patrick Hobbs, stand…

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Blockchain 

CoinGecko Joins AMLT Network to Combat Exchange Fraud, Scams, Hacks

Crypto market aggregator CoinGecko has joined the network of blockchain analytics and anti-money laundering (AML) company Coinfirm. This partnership will reportedly allow CoinGecko to improve its exchange Trust Score algorithm, as well as provide users with a means to report scams and hacks. The companies shared a press release with Cointelegraph on Aug. 16. According to documentation from Coinfirm, the company runs the AMLT network that allows members to report cryptocurrency addresses tied to hacks, ransomware, scams and fraud. Coinfirm then blocks these users and funds across the AMLT network.…

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Blockchain 

SEC Requests Freeze on Assets in Connection With Alleged $15M ICO Fraud

The United States Securities and Exchange Commission (SEC) has filed a complaint against a New York-based man and two of his companies. The SEC alleges that these entities conducted a fraudulent and unregistered ICO from late 2017 to 2018, and is requesting that a U.S. District Court issue an emergency freeze on the defendants’ related assets.  Hindenburg Research shared the SEC’s filing for a jury trial in a post on Aug. 12. According to the document, the commission is formally filing a complaint against Reginald Middleton, the New York company…

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Bitcoin 

US Department of Justice Accuses Crypto Exec of $7 Million Fraud Scheme

Federal authorities in the state of New York have unsealed fraud charges against the principal of a purported cryptocurrency escrow company Volantis in the amount of over $7 million. According to an announcement by the Department of Justice (DoJ), the United States Attorney for the Southern District of New York and the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (FBI) unsealed a filing with the allegations on July 25. The defendant, Volantis principal Jon Barry Thompson, was also arrested on the same day. …

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Ethereum 

‘Open to Massive Fraud’ — British MP Wants to Probe Facebook’s Libra

Damian Collins, a senior official at the British Parliament and known critic of Facebook, wants to probe the firm’s crypto project Libra. Damian Collins says Libra is going to be open to massive fraud  Collins, chairman of the British Parliament’s Digital, Culture, Media and Sport Committee, who led an 18-month investigation into the company following the Cambridge Analytica data scandal, reiterated his negative stance to Facebook in an interview with Financial News on July 22. Member of Parliament (MP) at the lower house of the United Kingdom’s Parliament, Collins pointed…

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Bitcoin 

Venezuelan Investors File Lawsuit With US Court in Connection With $30M Crypto Fraud

A group of Venezuelans has filed a lawsuit with a Florida Federal Court in connection with a Ponzi scheme involving $30 million in cryptocurrency promoted by Canadian investment radio host Harold Seigel. Payment and commerce news outlet Pymnts.com reported today, July 16, that seven Venezuelans claim to have been lured into a $30 million worth digital currency Ponzi scheme conducted by companies such as Eagle Financial Diamond Group Inc. and Argyle Coin. The cryptocurrency involved into the fraud was reportedly pegged to diamonds. The frauds allegedly used raised funds to…

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Blockchain 

Bitcoin Private Team Accuses Crypto Exchange HitBTC of Fraud After Delisting

Bitcoin Private (BTCP) developers have accused cryptocurrency exchange HitBTC of acting in a fraudulent manner in regards to their delisting from the exchange following a planned coinburn. The accusations are portrayed in a letter written on Feb. 26 to the exchange by the Petros Law Group on behalf of the BTCP community, developers and contributors, and published by the Bitcoin Private Twitter profile on March 9. According to its authors, the letter — which was published the day BTCP was delisted from HitBTC — alleges that HitBTC attempted to extort…

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Bitcoin 

CabbageTech Crypto Scheme Operator Pleads Guilty to Wire Fraud

46-year-old New York resident Patrick McDonnell admitted to stealing funds obtained from his clients instead of investing them in cryptocurrency, Bloomberg reports on June 21. Per the report, McDonnell — who calls himself the “coyote of Wall Street” — pleaded guilty to wire fraud on Friday in federal court in Brooklyn. He allegedly declared: “I claimed to invest it in virtual currency and spent it on personal expenses.” McDonnell attracted investors to his firm CabbageTech by claiming on social media to have traded over $50 million worth of bitcoin (BTC)…

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Bitcoin 

Spanish Law Enforcement Arrests 35 Suspects for Bank Fraud, BTC Money Laundering

Spanish law enforcement arrested 35 people for allegedly counterfeiting banking cards and laundering the proceeds through bitcoin (BTC), local media La Verdad reports on June 14. Per the report, the organization obtained over €600,000 ($674,000) and laundered over €1 million ($1.2 million) using bitcoin. Furthermore, the Command of Alicante reportedly solved a total of 1,020 connected cybercrimes during the operation. The alleged actions of the suspects — who are from Equatorial Guinea, Spain, Nigeria, Cameroon and Morocco — had a total of 219 victims in Spain, with 20 more in…

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Bitcoin 

Traditional Exchanges Pull Back From Reg A+ IPOs Due to Fraud Concerns

Traditional exchanges are holding off on Reg A+ initial public offerings (IPOs) following problematic offerings like that of purported cryptocurrency firm Longfin Corp., the Wall Street Journal (WSJ) reported on June 10. Earlier in June, the United States Securities and Exchange Commission’s (SEC) filed fraud charges against Longfin. The SEC claimed that Longfin fabricated 90% of its revenue and sold over 400,000 shares of Longfin that it did not have the funds to back in a scheme to secure its spot on the Nasdaq. The complaint also reportedly stated that…

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