Home Tags Charges
А U.S. District Attorney has charged the founders of a crypto pyramid scheme that involved the marketing of a fraudulent digital currency “OneCoin.” A United States District Attorney has charged the founders of an international cryptocurrency pyramid scheme that involved the marketing of an allegedly fraudulent digital currency called “OneCoin.” The announcement was published by the U.S. Attorney Office of the Southern District of New York on March 8. The founders and leaders of OneCoin, Konstantin Ignatov and his sister Ruja Ignatova, were reportedly arrested on March 6, 2019, in Los Angeles. The siblings were accused of “wire fraud, securities fraud, and money laundering offenses,” wherein they allegedly lured investors to contribute “billions of dollars in the fraudulent cryptocurrency.” OneCoin was established in 2014 and is based in the capital city of Bulgaria, Sofia. The project operates as a marketing network through which members receive commissions for attracting other poten..
The U.S. Securities and Exchange Commission has charged crypto firm Gladius Network with selling unregistered securities after the company self-reported. 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 an exemption from registration requirements.” According to the press release, however, Gladius self-reported to the securities regulator in the summer of last year. The report also specifies: “The SEC did not impose a penalty because the company self-reported the..
An appellate court in the U.S. state of Florida has reinstated charges against a man who allegedly sold Bitcoin to an undercover police officer. 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 argued that, since Bitcoin is not considered money under Florida law, no license is required. The judge subsequently ruled that Bitcoin is not money, and its sale unintentionally for illegal purposes does not constitute money laundering, further stating that BTC is just “poker chips that people ..
A U.S. federal court has ordered the founders of crypto startup AriseBank to pay $2.7 million in fines for allegedly defrauding hundreds of investors. 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 accounts and traditional banking services, including Visa-brand credit and debit cards, in addition to cryptocurrency services.” Per today’s announcement, AriseBank founders Rice and then-COO Stanley Ford are held liable for $2,259,543 in disgorgement plus $68,423 in prejudg..
The U.S. SEC has announced settled charges against Floyd Mayweather Jr. and DJ Khaled for unlawfully advertising an ICO. The U.S. Securities and Exchange Commission (SEC) has charged professional boxer Floyd Mayweather Jr. and music producer Khaled Khaled for unlawfully advertising Initial Coin Offerings (ICOs), according to a press release published Nov. 29. Per the announcement, the SEC found that Mayweather did not disclose promotional payments from three ICO issuers, including $100,000 from cryptocurrency startup Centra Tech, while Khaled, also known as DJ Khaled, failed to disclose $50,000 payment from the same company. Back in May, the three co-founders of Centra — Sohrab Sharma, Robert Farkas, and Raymond Trapani — were formally indicted for running a fraudulent ICO, which raised $32 million from investors in 2017. While neither party admitted to nor denied the charges against them, they agreed to pay certain fees and restrictions. Mayweather will pay $300,000 in disgorgement, ..
Police in northern India have filed a chargesheet against four suspects accused of scamming a victim out of $0.8 - 1.4 million in a crypto investment fraud. 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. At present, the chargesheet reportedly runs to over 1,800 pages, with reports from 15 complainants and 27 witnesses. It charges A. Bhardwaj with masterminding the allegedly fraudulent GainBitcoin crypto company, an investment scheme with a cloud-based platform for trading and mining Bitcoi..
SEC settles all charges against the founder of EtherDelta, Zachary Coburn. The founder has agreed to pay the sum of $300,000 in disgorgement along with $13,000 in prejudgment interest with a $75,000 penalty. Ethereum (ETH) Price Today – ETH / USD Name Price24H (%)$202.57 -0.82% The United States SEC announced that it has settled it’s charges against founder of digital token trading platform, Zachary Coburn. This represents the SEC’s initial enforcement action which is based on reports that a digital token trading platform was operating as an unregistered national securities exchange. The order from SEC The company, EtherDelta, is a online platform that promotes secondary market trading of ERC20 tokens. This is a type of blockchain based token that is issued mainly in initial coin offerings. The order revealed that Coburn allowed the platform to run as an unregistered national securities exchange. The online platform offered its users a marketplace for both sellers and buyers for d..
U.S. securities watchdog charges Zachary Coburn, founder of crypto trading platform EtherDelta, with operating an unregistered exchange. The U.S. Securities and Exchange Commission (SEC) has charged Zachary Coburn, the founder of crypto token trading platform EtherDelta, with operating an unregistered securities exchange, a press release by the SEC reveals Thursday, Nov. 8. EtherDelta, which served as a secondary marketplace for trading ERC20 tokens, allows its users to buy and sell digital assets by means of an order book and smart contracts based on the Ethereum blockchain. According to the SEC, over an 18-month operating period, EtherDelta's users placed more than 3.6 million orders for tokens, including ones that are considered securities by U.S. federal laws. The regulator notes that most of the orders were executed after the DAO report that SEC had released in June 2017. Under the current law, EtherDelta was obliged to register in U.S. or to apply for an exemption; however,..
The U.S. Department of Justice has charged seven officers from Russia’s Main Intelligence Directorate with crypto-funded crimes. The U.S. Department of Justice (DoJ) has charged seven officers from Russia’s Main Intelligence Directorate (GRU) with cryptocurrency-funded global hacking and related disinformation operations. The indictment was filed by the grand jury at the Western District of Pennsylvania October 3. The defendants, all of whom are alleged to work for the GRU — a military intelligence agency of the General Staff of the Armed Forces of the Russian Federation — have been charged on multiple counts for alleged “computer hacking, wire fraud, identity theft, and money laundering,” according to a DoJ press release published October 4. The group is said to belong to a hack team known as “Fancy Bear,” and the indictment contains charges dating back as early as 2014. According to the indictment, in order to “facilitate the purchase of infrastructure used in their hacking activity..
The CFTC has charged two defendants for the fraudulent solicitation of Bitcoin, impersonation of CFTC officials, and forging CFTC documents. The U.S. Commodity Futures Trading Commission (CFTC) has filed a suit against two defendants for the allegedly fraudulent solicitation of Bitcoin (BTC), according to an official press release published on Friday, September 28. The CFTC’s complaint — filed in the U.S. District Court for the Northern District of Texas — charges the two defendants with running two fraudulent businesses and misleading the public to invest in leveraged or margined foreign currency contracts, such as forex, binary options, and diamonds. The first defendant, who goes by the name Morgan Hunt, is reportedly from Arlington, Texas, and owns the company Diamonds Trading Investment House. The second defendant, Kim Hecroft, purportedly of Baltimore, Maryland, reportedly ran First Options Trading. According to the press release, Hunt and Hecroft have defrauded at least two inve..
12Page 1 of 2