Tagged: enforcement

FinCEN Fines and Bars Independent Cryptocurrency Exchanger

The Financial Crimes Enforcement Network (FinCEN), part of the US Department of Treasury, has fined the operator of a peer-to-peer cryptocurrency trading service $35,350 USD and barred him from money-transmitting, “for willfully violating the Bank Secrecy Act’s (BSA) registration, program, and reporting requirements.” In a release… Read More

REACT: Five SIM-Swap Crypto Hackers Arrested in US in 2018, Dozens at Large

A sergeant from the Silicon Valley-based Regional Enforcement Allied Computer Team (REACT) says 5 hackers, aged 18-26, who collectively stole $50 million USD in cryptocurrencies by taking over victims phones were arrested in 2018, The New York Post reports. Two of the more infamous alleged… Read More

OneCoin Affiliates Charged with Fraud in Singapore

Two unnamed individuals were charged with fraud April 10th for their involvement with OneCoin, a cryptocurrency pyramid scheme of global proportions started by a brother and sister team in Bulgaria. Business Times reports that an investigation by the Singapore Commercial Affairs Department and the Singapore Police… Read More

Texas Sanctions FX and Crypto Dealer FxBitGlobe

The Texas State Securities Board (TSSB) has issued an emergency cease and desist order against FxBitGlobe, a company the Board claims is “trading mostly in falsehoods” for pervading an unlikely cryptocurrency investment program that has pyramid-scheme features. According to the TSSB, FxBitGlobe, “claims to be… Read More

SEC Charges Founder of Payment Fintech Jumio with Fraud. Former CEO, Daniel Mattes Pays $17 Million Settlement

The Securities and Exchange Commission (SEC) has charged the founder and former chief executive mobile payment Fintech Jumio with defrauding investors. The former CEO of Jumio, Daniel Mattes, has agreed to pay more than $17 million to settle the charges. Mattes is also a “business… Read More

Report: Vanbex, Formerly Known as Etherparty, Accused of Cryptocurrency Fraud

According to a report in the Vancouver Sun, Vanbex, formerly doing business as Etherparty Smart Contracts, has been hit with a lawsuit launched by the British Colombia Civil Forfeiture Office. The report alleges that Vanbex and its two founders, Lisa Cheng and Kevin Hobbs, were… Read More

SEC Issues Cease & Desist Against Mutual Coin Fund LLC

The Securities and Exchange Commission (SEC) filed an administrative proceeding today against Mutual Coin Fund LLC and Usman Majeed. The fund submitted a Reg D to the SEC in late 2017. According to the Mutual Coin Fund website, the fund apparently invested in “relatively stable… Read More

Ukraine Cyberpolice Accuse Man of “CryptoJacking” a Million People

Cyberpolice in Ukraine say they have arrested a 32-year-old Bukovina resident accused of using “cryptojacking” software against a million individuals without their consent. Police allege the man deployed the software surreptitiously to the computers of individuals visiting websites run by the man. The sites reportedly… Read More

SEC Charges Direct Lending Investments with Multi Year Fraud

The Securities and Exchange Commission (SEC) has charged Direct Lending Investments (DLI), LLC with “a multi-year fraud.” According to the SEC, the ongoing fraud resulted in approximately $11 million in “over-charges of management and performance fees to its private funds, as well as the inflation… Read More

On Being Open and Honest With Regulators: The Gladius Network Cease & Desist Order and the SEC’s Map for ICO Remediation

For the third time since November 2018, on February 20, 2019, the SEC issued a cease and desist order relating to an initial coin offering (ICO) which set forth the steps for remediation of an unregistered securities offering, this time for Gladius Network, LLC (the… Read More

Accused Bitcoin Launderer Alexander Vinnik Appeals for Humanitarian Release

Alexander Vinnik, a 39-year-old Russian national accused by three countries of crimes involving bitcoins, including money-laundering and fraud, has filed an appeal with a court in Piraeus, Greece, asking that he be released from prison on humanitarian grounds and returned to Russia, Ekathimerini reports. Vinnik… Read More

AriseCoin Founder Pleads Guilty in $4 Million Crypto Fraud Case

Jared Rice Sr, creator of “AriseBank” and the associated cryptocurrency/token “AriseCoin,” has pleaded guilty to one count of securities fraud in Texas, Dallas News reports. The plea reportedly involved Rice admitting that he lied to investors when he raised money for his project. These lies… Read More

Quebec Securities Regulators Want to Hear From “Blockchain Laboratory” Investors

Quebec’s Autorité des marchés financiers (AMF) and Financial Markets Tribunal (TMF) would like to hear from anyone who invested in “Blockchain Lab Inc.” Affected investors are asked to contact M me  Sarah Abi-Khalil at 1 877 525-0337 , extension 2644, before 1 st April 2019. The company and its proprietors, Jonathan Forte, Benjamin… Read More

OneCoin: Huge Crypto Ponzi Perp Konstantin Ignatov is Arrested in LA as Feds Close In. “If It Sounds Too Good to Be True, It Probably Is”

On Friday, the Manhattan U.S. Attorney, part of the Department of Justice, issued a statement regarding ongoing Ponzi scam OneCoin stating that alleged perpetrator Konstantin Ignatov had been arrested at the Los Angeles airport. Ignatov was hit with charges of wire fraud conspiracy regarding the… Read More

CFTC Slams Offshore Crypto Trading Platform 1pool Ltd and CEO with $990,000 Penalty for Bitcoin Transactions

The Commodity Futures Trading Commission (CFTC) has hit Marshall Islands-registered 1pool Ltd and its CEO and owner Patrick Brunner with a $990,000 penalty for illegally offering retail commodity transactions that were margined in Bitcoin. Additionally, the CFTC sited the failure of the company to register… Read More

1Broker Settles SEC/CFTC Case “Without Admitting or Denying Factual Allegations”

1Broker, a Marshall Islands-registered company with a CEO based in Austria, has announced it has settled lawsuits filed against it by the US Securities regulators, the SEC and CFTC: “We are pleased to let you know that we settled the two lawsuits without admitting or… Read More

Police Arrest Crypto Promoter Who Threw Cash off Hong Kong High Rise

Wong Ching-kit, 25, known on social media as ‘Coin Young Master,’ and a 20-year-old accomplice, have been arrested in Hong Kong by officers from the Commercial Crime Bureau, South China News reports. They have reportedly been charged with conspiracy to defraud for selling cryptocurrency ‘mining… Read More

The SEC Asks Court Why Elon Musk Should Not be Held in Contempt for Tweets

The Securities and Exchange Commission (SEC) has filed a motion for an order to show cause, on February 25, why Elon Musk, CEO of Tesla, should not be held in contempt for violating the terms of the Court’s October 16, 2018, Final Judgment. The agreed… Read More

Gladius Self Reports ICO to SEC – No Fine Imposed

Gladius Network, LLC, a company that raised $12.7 million dollars via ICO (initial coin offering) in late 2017 to, “develop a network for renting spare computer bandwidth to defend against cyber attacks and enhance delivery speed,” has settled with the SEC after self-reporting its unregistered… Read More

Six Cryptominers Arrested in Germany for Stealing Electricity

Five men and one woman have been arrested in Klingenthal, Germany and are charged with stealing 220 000 Euros ($249 843 USD) worth of electricity to run a cryptocurrency mine consisting of 49 computers housed in an industrial facility, Freie Presse reports. Officials reportedly detected… Read More

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