Cryptocurrency - Shore News Network

Former Security Engineer Sentenced for Hacking Cryptocurrency Exchanges

Breaking Local News ReportApril 14, 20240

NEW YORK, NY – Shakeeb Ahmed, a former senior security engineer, has been sentenced to three years in prison for hacking two decentralized cryptocurrency exchanges and stealing over $12 million worth of cryptocurrency. The sentence, handed down by U.S. District Judge Victor Marrero, includes three years of supervised release, and Ahmed is also required to forfeit the stolen funds and pay restitution exceeding $5 million. U.S. Attorney Damian Williams announced the sentencing, emphasizing the significance of this being the first-ever conviction for hacking a smart contract. Ahmed’s hacks involved exploiting weaknesses in the exchanges’ systems to manipulate transactions and pricing

Former New Jersey Corrections Officer Pleads Guilty to Cryptocurrency Fraud

Law and Crime ReportMarch 26, 20240

NEWARK, NJ – A former corrections officer from New Jersey has admitted to orchestrating fraud schemes targeting first responders, resulting in over $600,000 in losses. In federal court, John DeSalvo, 47, of Linwood, NJ, pleaded guilty to securities fraud charges for his involvement in two fraudulent investment schemes. U.S. Attorney Philip R. Sellinger announced that DeSalvo targeted law enforcement, fire personnel, and other first responders with a cryptocurrency scheme dubbed “the crypto pension.” DeSalvo’s fraudulent activities promised high returns with no risk, exploiting the trust of public servants. DeSalvo’s Blazar Token was marketed as a stable investment to supplement pensions,

CEO of Crypto Arraigned in Brooklyn on Multi-Million Dollar Cryptocurrency Fraud

Indira PatelJanuary 20, 20240

This morning, German national Horst Jicha, 64, will be arraigned at the federal courthouse in Brooklyn, facing charges of securities fraud, wire fraud, and money laundering conspiracies in connection with a cryptocurrency scheme known as USI Tech. The indictment was unsealed following Jicha’s arrest on December 23, 2023, as he attempted to vacation in Miami, Florida. United States Attorney Breon Peace for the Eastern District of New York and James Smith, Assistant Director-in-Charge of the FBI New York Field Office, announced the charges. U.S. Attorney Peace stated that Jicha allegedly exploited the burgeoning interest in cryptocurrencies to defraud U.S. investors

Four Individuals Charged with Laundering Millions from Cryptocurrency Investment Scams Known as ‘Pig Butchering’

Indira PatelDecember 15, 20230

LOS ANGELES – Three Southland residents and a fourth defendant have been named in a seven-count indictment charging them with participating in a scheme to launder the proceeds of cryptocurrency investment scams and other fraudulent schemes involving millions of dollars in victim funds, the Justice Department announced today. Two of the defendants – Lu Zhang, 36, of Alhambra, and Justin Walker, 31, of Cypress – were arrested Tuesday morning. The other two defendants – Joseph Wong, 32, Rosemead, and Hailong Zhu, 40, Naperville, Illinois – are currently being sought by federal authorities. The indictment charges all four defendants with conspiracy

Two Men Charged for Operating $25M Cryptocurrency Ponzi Scheme

Indira PatelDecember 12, 20230

A superseding indictment was unsealed yesterday charging an Australian national and a California man with operating a cryptocurrency Ponzi scheme that defrauded victims of more than $25 million. According to court documents, David Gilbert Saffron, 51, of Australia, and Vincent Anthony Mazzotta Jr., 52, of Los Angeles, allegedly conspired to operate a fraudulent scheme to induce victims to invest in various trading programs that falsely promised to employ an artificial intelligence automated trading bot to trade victims’ investments in cryptocurrency markets and earn high-yield profits. Saffron and Mazzotta promoted the investment programs under various names including Circle Society, Bitcoin Wealth

Round Rock Fraudster Sentenced for Stealing More Than $600,000 in Cryptocurrency Through SIM Swapping Scheme

Indira PatelDecember 8, 20230

AUSTIN, Texas – A Round Rock man was sentenced in a federal court in Austin to 24 months inprison for conspiracy to commit wire fraud. According to court documents, from August 2019 to February 2021, Daniel Akira Mills, 22,participated in a criminal wire fraud conspiracy that employed SIM swaps to defraud victims ofhundreds of thousands of dollars in property. Participants in the scheme gained unauthorized accessto online accounts of victims through a cyber intrusion technique referred to as “SIM swapping.”During a SIM swap attack, cyber threat actors gain control of a victim’s mobile phone number bylinking that number to a

Founder and Majority Owner of Cryptocurrency Exchange Pleads Guilty to Unlicensed Money Transmitting

Indira PatelDecember 6, 20230

The founder and majority owner of Bitzlato Ltd. (Bitzlato), a cryptocurrency exchange that served as a primary conduit for dark market purchasers and sellers, as well as a safe haven for illicit transactions by ransomware criminals, pleaded guilty today to operating a money transmitting business that transmitted illicit funds. In connection with his plea agreement, Anatoly Legkodymov, aka Anatolii Legkodymov, Gandalf, and Tolik, 41, who is a Russian national and resided in Shenzen, People’s Republic of China, agreed to dissolve Bitzlato and to release any claim over approximately $23 million in seized assets of Bitzlato. “As alleged, Bitzlato advertised a

Founder and Majority Owner of Cryptocurrency Exchange Pleads Guilty to Unlicensed Money Transmitting

Indira PatelDecember 6, 20230

Anatoly Legkodymov, a Russian national also known as “Anatolii Legkodymov,” “Gandalf” and “Tolik,” pleaded guilty today in federal court in Brooklyn to operating a money transmitting business that transported and transmitted illicit funds. The charges stem from Legkodymov’s majority ownership of Bitzlato Ltd., a cryptocurrency exchange that served as a primary conduit for dark market purchasers and sellers, as well as a safe haven for ransomware criminals. As part of his plea agreement, Legkodymov agreed to dissolve Bitzlato and to release any claim over approximately $23 million in seized assets of Bitzlato. The proceeding was held before United States District

Leader Of Miami Crew Sentenced To 63 Months In Prison For Defrauding Banks And Cryptocurrency Exchange Of More Than $4 Million

Indira PatelNovember 30, 20230

Damian Williams, the United States Attorney for the Southern District of New York, announced that ESTEBAN CABRERA DA CORTE, a/k/a “Esteban Cabrera,” a/k/a “Esteban Da Corte,” a/k/a “Steban,” was sentenced to 63 months in prison by U.S. District Judge Katherine Polk Failla for organizing a scheme to steal millions of dollars’ worth of cryptocurrency and trick U.S. banks into refunding the millions used to purchase that cryptocurrency by using, in part, personal identifying information stolen from other people. U.S. Attorney Damian Williams said: “Esteban Cabrera Da Corte orchestrated a scheme to steal millions of dollars by buying cryptocurrency using false

Suburban man convicted of Bitstamp cryptocurrency fraud scheme

Indira PatelOctober 13, 20230

HOUSTON – A 37-year-old Sugarland resident has pleaded guilty to aggravated identity theft in connection with a scheme to fraudulently obtain and launder more than $500,000, announced U.S. Attorney Alamdar S. Hamdani. Xiaofei Chen admitted he arranged a fraudulent wire of $520,000 from the victims checking account. Chen opened a Bitstamp cryptocurrency exchange account using the victim’s name and driver’s license without the consent or knowledge of the victim. Chen used the Bitstamp account and other cryptocurrency accounts to convert the proceeds into Bitcoin and laundered the Bitcoin through numerous transactions. U.S. District Judge Alfred H. Bennett accepted the

CEO Pleads Guilty to Transnational Scheme Involving Foreign Exchange and Cryptocurrency Futures Contracts

Indira PatelOctober 12, 20230

A former chief executive officer of an investment firm pleaded guilty yesterday to a “cherry-picking” scheme, in which he fraudulently misappropriated profitable trades to himself, and saddled his investors with losses. According to court documents, Peter Kambolin, 48, a U.S.-Russian national of Sunny Isles Beach, Florida, was the owner and chief executive officer of Systematic Alpha Management LLC (SAM), an investment firm that Kambolin marketed as offering algorithmic trading strategies involving futures contracts. Between January 2019 and November 2021, Kambolin, who at the time was a commodity trading advisor and a commodity pool operator, engaged in a cherry-picking scheme in

Brazil’s central bank seeks tighter cryptocurrency regulation, brokerage oversight

ReutersSeptember 27, 20230

BRASILIA (Reuters) – Brazil’s central bank governor Roberto Campos Neto on Wednesday said policymakers are aiming to tighten cryptocurrency regulation and subject brokerages to their supervision. Speaking during a hearing in Congress, Campos Neto emphasized regulators will scrutinize the backing of cryptocurrencies and associated activities, given the significant surge in cryptocurrency imports by Brazilians. Data released by the central bank this week revealed cryptocurrency imports jumped by 44.2% from January to August compared to the same period last year, totaling $7.4 billion. There is a perception that local demand has shifted toward stablecoins, which are cryptocurrencies typically linked to real-world

Germany to reject Binance’s bid for a cryptocurrency licence – source

ReutersJune 29, 20230

FRANKFURT (Reuters) – German regulators have told Binance they will not grant it a cryptocurrency custody licence, a person with direct knowledge of the matter said on Thursday, the latest in a string of setbacks for the world’s biggest cryptocurrency exchange. Binance has come under pressure from regulators around the world. The U.S. Securities and Exchange Commission this month sued Binance and its CEO Changpeng Zhao over what the regulator called a “web of deception” to evade U.S. laws. Binance denies the charges. The German regulator, BaFin, issued a statement declining to comment on individual companies due to confidentiality. Binance

Cryptocurrency Founder “Bruno Block” Pleads Guilty to Tax Crimes

Adam DevineApril 10, 20230

NEW YORK, N.Y. – Amir Bruno Elmaani, the founder of the cryptocurrency “Oyster Pearl,” pled guilty to tax offenses on Wednesday. Elmaani admitted that he had secretly minted and sold approximately 3 million Pearl cryptocurrency tokens for his own gain in 2017 and 2018, causing the price to plummet and resulting in substantial losses for investors. Moreover, he did not pay income tax on certain cryptocurrency profits, which amounted to over $5.5 million. The case was heard in the Southern District of New York. The U.S. Attorney’s Office stated that Elmaani’s actions were a clear example of greed, undermining the

Essex County Woman Admits Role in $25 Million Cryptocurrency Fraud

Leo CanegaApril 1, 20230

Newark, NJ – U.S. Attorney Philip R. Sellinger announced on Wednesday that Edith Pardo, 70, of Bloomfield, pleaded guilty to her involvement in fraudulently inducing victims to invest over $25 million in cash and cryptocurrency. Pardo and her co-defendant, Boaz Manor, promoted a product called ComplianceGuard through CG Blockchain Inc. and BCT Inc., which claimed to provide hedge funds with a blockchain-based auditing tool. Pardo helped Manor, who had a criminal past, hide his identity from investors. The duo made false claims about the company, its ownership, and the product’s success. In 2017, they raised over $25 million through an

New York sues KuCoin, expands cryptocurrency crackdown

ReutersMarch 9, 20230

By Jonathan Stempel NEW YORK (Reuters) -New York’s attorney general on Thursday sued KuCoin for failing to register with the state before letting investors buy and sell cryptocurrencies on its platform, as part of her effort to rein in what she calls “shadowy” cryptocurrency companies. Attorney General Letitia James said the fourth-largest cryptocurrency platform violated the Martin Act, a powerful state securities law, by transacting in cryptocurrencies, selling the product “KuCoin Earn” to generate income for itself and investors, and wrongfully calling itself an “exchange.” In papers filed with a state court in Manhattan, James is seeking a permanent injunction

CEO Of Cryptocurrency And Forex Trading Platform Pleads Guilty To Over $240 Million Scheme To Defraud Investors

DOJ PressFebruary 11, 20230

Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of EDDY ALEXANDRE, the leader of a purported cryptocurrency and foreign exchange (“forex”) trading platform called EminiFX, who solicited more than $248 million in investments from tens of thousands of individual investors after making false representations in connection with the EminiFX trading platform. U.S. District Judge John P. Cronan accepted the defendant’s guilty plea. U.S. Attorney Damian Williams said: “Eddy Alexandre admitted today to luring investors to his cryptocurrency investment scam by fabricating weekly returns of at least 5%. In reality, Alexandre

G20 exploring cryptocurrency regulation, India’s finance minister says

ReutersFebruary 11, 20230

By Nikunj Ohri (Reuters) – The Group of 20 (G20) big economies is exploring whether the group could collectively regulate cryptocurrencies, Finance Minister Nirmala Sitharaman said on Saturday. Given the sophisticated technologies involved with these virtual assets, countries must discuss whether a given regulation is needed, said Sitharaman, whose country is this year’s G20 president. Prime Minister Narendra Modi’s government has for several years debated drafting a law to regulate or even ban cryptocurrencies but has not made a final decision. “We are talking to all nations, that if it requires regulation, then one country alone cannot do anything,” Sitharaman

Explainer-What is ‘staking,’ the cryptocurrency practice in regulators’ crosshairs?

ReutersFebruary 10, 20230

By Hannah Lang and Elizabeth Howcroft (Reuters) – Crypto companies offering their customers eye-popping yields through so-called “staking” products are earning the ire of the U.S. securities regulator who says such services should be registered. Crypto exchange Kraken on Feb. 9 agreed to shutter its staking service for U.S. customers and pay $30 million in penalties, as part of a settlement with the regulator, and investors are worried a broader ban on the practice could follow. Here’s what you need to know about staking: What is staking? Staking is a process in which cryptocurrency holders volunteer to take part in

Former Coinbase Insider Pleads Guilty In First-Ever Cryptocurrency Insider Trading Case

DOJ PressFebruary 7, 20230

Damian Williams, the United States Attorney for the Southern District of New York, announced today that ISHAN WAHI, a former product manager at Coinbase Global, Inc. (“Coinbase”), pled guilty to two counts of conspiracy to commit wire fraud in connection with a scheme to commit insider trading in cryptocurrency assets by using confidential Coinbase information about which crypto assets were scheduled to be listed on Coinbase’s exchanges. WAHI was arrested and charged in July 2022 and pled guilty earlier today before U.S. District Judge Loretta A. Preska. U.S. Attorney Damian Williams said: “Ishan Wahi – a former Coinbase product manager

U.S. Promoter of Foreign Cryptocurrency Companies Sentenced to 60 Months in Prison for His Role in Multi-Million Dollar Securities Fraud Scheme

DOJ PressFebruary 1, 20230

BROOKLYN, NY – Earlier today, in federal court in Brooklyn, John DeMarr was sentenced by United States District Judge LaShann DeArcy Hall to 60 months in prison for his participation in a cryptocurrency and securities fraud scheme. The Court also ordered DeMarr to pay $3,513,305.41 in forfeiture. In July 2021, DeMarr pleaded guilty to one count of conspiracy to commit securities fraud. Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, Donald Alway, Assistant Director-in-Charge, Federal Bureau of Investigation, Los Angeles Field Office (FBI),

Dutch central bank fines cryptocurrency exchange Coinbase 3.3 million euros

ReutersJanuary 26, 20230

AMSTERDAM (Reuters) – The Dutch central bank (DNB) has fined U.S. cryptocurrency exchange Coinbase 3.3 million euros ($3.6 million) for failing to obtain the correct registration in the Netherlands before offering services. The fine mirrors one handed to Coinbase rival Binance in July. Coinbase said it disagreed with the DNB’s decision, which it said “includes no criticism of our actual services” and was considering an appeal. Cryptocurrency companies operating in the Netherlands have been obliged to register as money transmitters under the country’s anti-money laundering rules since May 2020. The DNB said Coinbase was out of compliance between November 2020

Founder and Majority Owner of Bitzlato, a Cryptocurrency Exchange, Charged with Unlicensed Money Transmitting

DOJ PressJanuary 18, 20230

Defendant Wrote on Bitzlato’s Internal Chat Room That its Users Were “Known to be Crooks” BROOKLYN, NY – A complaint was unsealed this morning in federal court in Brooklyn charging Anatoly Legkodymov, a Russian national and senior executive of Bitzlato Ltd. (Bitzlato), a Hong Kong-registered cryptocurrency exchange, with conducting a money transmitting business that transported and transmitted illicit funds and that failed to meet U.S. regulatory safeguards, including anti-money laundering requirements. Legkodymov was arrested last night in Miami and is scheduled to be arraigned this afternoon in the U.S. District Court for the Southern District of Florida. French authorities and

Founder and Majority Owner of Cryptocurrency Exchange Charged with Processing Over $700 Million of Illicit Funds

DOJ PressJanuary 18, 20230

The founder and majority owner of a cryptocurrency exchange, Bitzlato Ltd. (Bitzlato), was arrested last night in Miami for his alleged operation of a money transmitting business that transported and transmitted illicit funds and that failed to meet U.S. regulatory safeguards, including anti-money laundering requirements. Anatoly Legkodymov, 40, a Russian national who resides in Shenzhen, People’s Republic of China, is scheduled to be arraigned this afternoon in the U.S. District Court for the Southern District of Florida. French authorities and the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) are taking concurrent enforcement actions. “Today the Department of

Defendant Sentenced In Groundbreaking Cryptocurrency Insider Trading Case

DOJ PressJanuary 10, 20230

Damian Williams, the United States Attorney for the Southern District of New York, announced today that NIKHIL WAHI was sentenced by U.S. District Judge Loretta A. Preska to 10 months in prison for his participation in a scheme to commit insider trading in cryptocurrency assets by using confidential information from his brother, a former product manager at Coinbase Global, Inc. (“Coinbase”), about which crypto assets were scheduled to be listed on Coinbase’s exchanges. WAHI previously pled guilty to one count of conspiracy to commit wire fraud. U.S. Attorney Damian Williams said: “At a time when the cryptocurrency markets have been