Tagged: enforcement

Young Man Accused of Hacking Electronic Arts Ordered to Post Bail in Cryptocurrency

A young man accused of hacking popular Bay Area computer gaming company Electronic Arts (EA) has been forced by a California Judge to post $750 00 worth of cryptocurrency as bail. Martin Marsich, 25, was arrested at San Francisco Airport August 8th while en route… Read More

ICO Tokens & the SEC: You Can’t Even Give Them Away …. No, Seriously

Summary:    The SEC has issued a Cease & Desist Order and sanctions against a token issuer and its founder.  Among several findings, the SEC determined that the “Bounty Program” run by the issuer constituted a securities offering.  The Order states “a ‘gift’ of a… Read More

Bureau of Consumer Financial Protection Settles PayDay Loans Lawsuit, Imposes Hefty Judgement that is Unlikely to be Paid

The Bureau of Consumer Financial Protection (previously known as the CFPB) has reported that a federal district court in the Western District of Missouri has entered an Order effectuating a settlement between the Bureau  and Richard Moseley, Sr., Richard Moseley, Jr., and 20 interrelated corporate… Read More

Another LocalBitcoins Seller Jailed in the US

A LocalBitcoins seller in Arizona has been sentenced to 41 months’ imprisonment (with credit for time served) after being convicted by a jury of trading bitcoins for drug money. According to a release from the Arizona District Attorney’s Office, federal agents began investigating Thomas Mario… Read More

Colorado Securities Commissioner Issues Cease & Desist Halting “Linda Health Coin” ICO

An initial coin offering has been hit by an action by the state of Colorado that was deemed to be a security. A July 30th release from the Colorado Department of Regulatory Agencies states that “Linda Healthcare” purveyor Arturo Devesa has received a cease and… Read More

Jon “Ukyo” Montroll Pleads Guilty on Bitcoin Related Fraud, Operated WeExchange & Bitfunder

Jon Montroll, also known as “Ukyo” – former operated of two crypto businesses WeExchange and Bitfiunder, pled guilty to securities fraud and obstruction of justice charges leveled against Montroll in New York Federal Court in New York this week. Montroll launched Bitfunder in 2012 where… Read More

Billy McFarland, Fyre Festival Founder, Slammed by SEC in Fraud Settlement

Multi-year offering fraud raised at least $27.4 million from over 100 investors The Fyre Festival was billed as a super luxe musical festival to be held in the Exumas (part of the Bahamas) populated by models and the super cool. Celebrities like Bella Hadid, Kendall… Read More

CFTC: NY Court Orders Dillon Michael Dean to Pay $1.9 Million Penalty Pertaining to Bitcoin Fraud

In early 2018, the Commodity Futures Trading Commission (CFTC) filed a civil enforcement action in the U.S. District Court for the Eastern District of New York against Dillon Michael Dean of Longmont, Colorado and his company, The Entrepreneurs Headquarters Limited. The UK registered firm and Dean have… Read More

Plexcoin: Alleged ICO Fraudster Forced to Surrender $3.7M in Bitcoin in Quebec Courtroom

A man accused of using a digital token offering to defraud investors had his computers brought before him in a Quebec courtroom earlier this month and was forced by the presiding judge to hand over 420 bitcoins, Radio Canada reports. Dominic Lacroix planned his “Plexcoin”… Read More

Russian Accused of Laundering Bitcoin Proceeds of Crime to Be Extradited from Greece to France

Alexander Vinnik, a Russian national accused by the US government of laundering $4 billion dollars of cryptocurrency proceeds of crime will be extradited from Greece to France to face charges there, CNN Greece reports. An unsealed US government indictment charges Vinnik with 21 counts of… Read More

SEC Obtains Judgement Against Attorney, Law Firm Manager on Sales of Ubi Blockchain Stock

The Securities and Exchange Commission (SEC) has obtained final judgments against attorney T.J. Jesky and his law firm’s business affairs manager, Mark F. DeStefano pertaining to the illegal sales of Ubi Blockchain stock. Both Jesky and DeStefano profited from sales in the stock. UBIA is a… Read More

US Department of Justice Seizes $20 Million in Bitcoin, Arrests 35 in Darknet Bust

The American Department of Justice (DOJ) announced June 26th that its “First Nationwide Undercover Operation Targeting Darknet Vendors” has resulted in the arrest and charge of 35 individuals accused of selling illicit goods in the Internet underworld. The comprehensive, inter-agency dragnet also seized guns, drugs,… Read More

SEC Obtains Additional Order to Freeze PlexCoin ICO Assets

The Securities and Exchange Commission (SEC) has received an additional emergency court order freezing the assets of Dominic Lacroix. The freeze is part of an ongoing enforcement action that stems from some time ago. The SEC had previously sued for securities fraud and had obtained… Read More

Police to Lay Charges in Japan’s First “CryptoJacking” Case

Police in Japan have charged three individuals with infecting the computers of unsuspecting individuals with malware that mines the privacy cryptocurrency Monero. According to the Japanese daily news provider Mainichi, the three individuals are accused of setting up web sites designed to attract and then surreptitiously… Read More

Here is the Preliminary Injuction filed by the SEC Against Titanium Blockchain and their ICO

Yesterday, the Securities and Exchange Commission, Division of Enforcement, posted an update on the Titanium Blockchain enforcement action that reviewed the preliminary injunction filed against the firm. A quick review of the update indicated little new pertaining to the SEC’s move to shut down the… Read More

Titanium Blockchain Issues Official Statement Following SEC Enforcement Action

Titanium Blockchain (TBIS), founded by Michael Alan Stollery, aka Michael Stollaire, has issued an official statement regarding the enforcement action by the Securities and Exchange Commission (SEC) which froze all of the TBIS assets in a court ordered emergency action. TBIS raised approximately $21 million in… Read More

SEC Issues Another Emergency Order Pertaining to ICO by “Blockchain Evangelist” Michael Stollaire & Titanium Blockchain

The Securities and Exchange Commission (SEC) has received a court approved emergency asset freeze and the appointment of a receiver for Titanium Blockchain Infrastructure Services (TBIS) pertaining to an initial coin offering (ICO). Between November 2017 through at least January 2018, the ICO succeeded in raising as… Read More

House Financial Services Subcommittee: Representative Sherman Tells SEC to Shut All ICOs Down, Representative Emmer Sees “Real Opportunity” with Crypto

Last week, while New York City saw thousands of cryptocurrency enthusiasts discuss the benefits of digital assets and blockchain, a House Financial Services subcommittee reviewed initial coin offerings with the leaders of the Securities and Exchange Commission (SEC) Enforcement Division. The Congressional Hearing provided a… Read More

Commissioner Quintenz Comments on CFTC Internal Cryptocurrency Enforcement Task Force & SEC Coordination

Commodity Futures and Trading Commission (CFTC) Commissioner Brian Quintenz commented on cryptocurrency enforcement actions this week. During a speech delivered to the FIA’s 40th Annual Law and Compliance Conference, Quintenz noted that the CFTC Crypto task force is coordinating with their counterparts at the Securities… Read More

Crypto Related Company Longfin “Voluntarily” Delists from NASDAQ as SEC Receives Continuing Freeze of $27 Million in Company Assets

Longfin Corp. has announced its intent to “voluntarily” delist from the NASDAQ. The move comes as an ongoing enforcement action by the Securities and Exchange Commission saw allegations of illegal distributions and sales of restricted shares. Longfin raised capital using the Reg A+ crowdfunding exemption… Read More