fraud

📅 November 11 | London, United Kingdom
Luxury, lies, and cryptocurrencies. This sums up the story of Yue Xiang, a 38-year-old Chinese citizen who lived like a tycoon in London while hiding a dark secret: his fortune came from Bitcoins stolen in one of the largest money laundering operations ever uncovered in the UK. According to The Block, Xiang was sentenced to 11 years in prison following an investigation by the National Crime Agency (NCA) that linked him to the record seizure of Bitcoin valued at over £5.6 billion (around $7.1 billion).
The accused, who lived a life of excess—luxury cars, properties in exclusive areas, and frequent trips to Monaco—managed digital funds originating from international fraud schemes executed from China between 2014 and 2017.

📖 A series of massive frauds executed in Asia between 2014 and 2017 affected thousands of investors. The funds were moved through layers of blockchain transactions, concealed among exchanges, mixers, and fake addresses. When investigators finally followed the trail, they discovered a pattern: the crypto wallets always ended up in the UK.
That's where Yue Xiang came in. Under a false identity, the accused had invested the illicit funds in London real estate, Swiss watches, contemporary art, and classic cars. His lifestyle attracted attention even in financial circles: dinners in Mayfair, yacht vacations, and regular stablecoin transfers to offshore accounts.
In 2021, British police conducted a secret operation after detecting suspicious movements of more than 61,000 BTC linked to addresses under their control. The seizure marked the largest crypto bust in the country's history, surpassing even the 2021 cases related to darknet markets.
During the trial, prosecutors proved that Xiang had received funds from Ponzi schemes and cyber hacks, and that he had used decentralized platforms to convert them into seemingly “clean” assets.
Judge Sarah Munro, in delivering the sentence, was unequivocal:
“The use of advanced financial technologies does not absolve him of responsibility.This court will not allow innovation to be a shield for crime.”
The verdict, in addition to the 11-year prison sentence, includes the permanent confiscation of the Bitcoins and the possibility of extradition to China for additional offenses.

Topic Opinion:
Transparency in blockchain does not mean impunity. Many still believe that cryptocurrencies are a haven for anonymity, but cases like Xiang's demonstrate that the digital footprint never disappears. Justice, though delayed, does arrive—and in this case, with a historic blow to those who attempt to corrupt decentralized technology.
💬Do you think major money laundering cases damage Bitcoin's reputation?

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#bitcoin #CryptoNews #fraud #BTC #Justice $BTC

The Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, recently highlighted the increasing number of frauds in the cryptocurrency space, which is linked to the historic surge in the price of Bitcoin. Gensler emphasized the risks associated with unethical practices in the crypto world and pointed out the volatile nature of Bitcoin, which can attract speculative investors.
Gensler pointed out the issues in the broader context of the crypto industry, including the dangers arising from inadequate information provided by digital asset intermediaries, which could jeopardize investors.
Year 2023: Record Year for Cryptocurrency Frauds
According to analysis by Chainalysis, frauds became a key factor in cryptocurrency-related crime in 2023, with generated revenues exceeding $4.6 billion. The FBI's report on internet crime shows that there was an increase in losses from crypto investment frauds in the USA to $3.94 billion, representing a 53% increase from the previous year. Investment frauds became the most common type of internet crime in 2023.

Reasons for the Increase in Frauds
The rise in frauds is linked to increasing interest in high-yield investment opportunities during strong market sentiment. Chainalysis research suggests that frauds generate smaller revenues during downturns in the crypto market.

Most Common Types of Fraudulent Schemes
The BBB's 2023 fraud report revealed that scammers come up with innovative methods to deceive investors, with approximately 80% of Americans targeted by crypto and investment frauds in 2022 experiencing financial losses. A significant increase was noted in cases of romance scams, which increased 85 times since 2020.

Pump and dump schemes are unpredictable and utilize new tokens to artificially inflate their prices, enabling fraudsters to make money when prices are at their peak. According to Chainalysis, only a small percentage of the more than 370,000 tokens launched on Ethereum in 2023 achieved significant liquidity.

How to Protect Oneself
The key to protecting oneself from frauds is to be vigilant and informed about potential risks. A proactive approach and caution in trading cryptocurrencies can help minimize the possibility of falling victim to frauds.
Conclusion
The risk of frauds is high in the cryptocurrency world, especially at a time when the market is constantly evolving and attracting new investors. It is important to be aware of potential dangers and take measures to protect your investments.
#crypto #fraud

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

According to a recent article in The New York Times, Sam "SBF" Bankman-Fried, the founder of the cryptocurrency exchange FTX, is providing investment advice to prison guards and suggesting investments in the cryptocurrency Solana.
SBF's legal representatives seek a lighter sentence
The legal team of former FTX chief, Sam "SBF" Bankman-Fried, filed a motion in the Federal District Court in Manhattan requesting a sentence ranging from five and a quarter years to six and a half years. Following charges of multiple offenses including fraud and money laundering, which could have led SBF to face up to 110 years in prison, this request emerges as a response to last year's jury verdict.
Details of the charges and expected sentence
SBF faces charges of various financial crimes, including wire fraud, conspiracy to commit securities fraud, and money laundering. The sentence for SBF is scheduled to be handed down by Judge Lewis A. Kaplan on March 28, while federal prosecutors are expected to submit their sentencing recommendation by March 15. A preliminary investigation report suggested a sentence of 100 years.
Defense arguments for a reduced sentence
SBF's lawyers have labeled the proposed century-long sentence as "barbaric," pointing out that SBF is a first-time offender with no prior criminal record and that four co-defendants have confessed to the crimes. Furthermore, they argued that the damages to clients, creditors, and investors are zero, as the bankruptcy process of FTX is expected to enable full reimbursement to clients for their losses.
SBF's life in prison and his advice to prison guards
Since his imprisonment at the Metropolitan Detention Center in Brooklyn last summer, several stories about SBF have emerged from prison, including his offering of trading and investment advice to prison guards, recommending investment in the cryptocurrency Solana. This activity follows the collapse of FTX, one of the largest crypto exchanges, which was valued at $32 billion in January 2022 before collapsing in November of the same year due to mismanagement and fraud involving $8 billion of customer funds.
$SOL
#Solana #SBF #fraud

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

 

A federal court has ruled against Stephen Ehrlich, co-founder of crypto platform Voyager Digital, ordering him to pay $750,000 in restitution to customers harmed by the company’s collapse. The funds will be distributed through bankruptcy proceedings, while Ehrlich has also agreed to a three-year ban from registering with or participating in markets under the oversight of the Commodity Futures Trading Commission (CFTC).

Voyager Marketed as a “Safe Haven,” But Reality Differed
The CFTC alleged that Ehrlich misled customers by promoting Voyager as a “safe place” for crypto investments, comparing it to regulated banks and promising maximum care for client deposits. In reality, the company engaged in highly risky practices without offering protections similar to traditional financial institutions.
Voyager attracted users with promises of returns up to 12% on crypto deposits, while banks offered only a fraction of that. However, these returns were only possible because Voyager loaned out billions of dollars in customer assets to high-risk third parties, often without sufficient collateral. When Voyager ultimately filed for bankruptcy in 2022, tens of thousands of people lost access to their accounts, with their funds locked in bankruptcy proceedings.

Settlement Instead of Lengthy Trial
Ehrlich agreed to the settlement without admitting or denying wrongdoing. His attorney, Sarah Krissoff, said the agreement benefits both sides: customers will receive some compensation, while Ehrlich avoids a lengthy and costly trial that could have revealed further issues.
The court order also prohibits Ehrlich from registering with the CFTC, leading firms, or acting as an advisor in commodity or crypto markets for three years. In addition, he must comply with anti-fraud provisions of the Commodity Exchange Act.

Regulator Sends a Clear Message
“This settlement demonstrates that the CFTC takes such cases very seriously and will continue to prevent individuals from committing fraud that harms investors,” said Charles Marvine, Acting Director of Enforcement.

Conclusion: Once the face of a promising crypto platform, Stephen Ehrlich must now deal not only with financial penalties but also with a temporary ban from the industry. For investors, the case is a reminder that behind the allure of high returns often lies dangerous risk.

#CFTC , #crypto , #Regulation , #fraud , #markets

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“