cryptofraud

South Korean courts have handed down prison sentences to two men involved in a large-scale voice phishing operation and subsequent money laundering using cryptocurrencies. According to the ruling, funds worth approximately $1 million in the stablecoin USDT were laundered through an illegal crypto exchange.
The main organizer of the scheme, a 41-year-old man, was sentenced to five years in prison. His subordinate and employee received a sentence of two years and eight months. Prosecutors stated that the two operated an illegal cryptocurrency exchange that served as a key conduit for laundering proceeds from voice phishing scams.

Illegal exchange used as a laundering hub
Investigators revealed that the defendants closely cooperated with an organized voice phishing group operating largely from abroad. Communication between the criminals took place via Telegram over a period of roughly three months.
The scam itself followed a familiar voice phishing pattern. The perpetrators posed as police officers or relatives in distress, deceiving victims into transferring money under false pretenses. Victims were instructed to send funds to bank accounts controlled by the illegal exchange run by the convicted men.
Once the money arrived from local banks, exchange employees immediately converted the fiat currency into USDT, the stablecoin issued by Tether. The entire process was designed to be as fast as possible in order to minimize the chances of intervention by authorities.

Funds vanished within an hour
According to prosecutors, the speed of the transfers was a critical factor. From the moment victims sent their money, it often took less than an hour for the funds to move from bank accounts through cash handling and finally into cryptocurrency form.
This rapid execution prevented banks and regulators from freezing accounts in time. Even when victims reported the fraud to police, there was virtually no window to recover the stolen funds.
Prosecutors also told the court that the voice phishing operation itself was run from overseas, though the exact location was not disclosed. The key money-laundering steps, however, were carried out through the illegal exchange in South Korea.

Court: Defendants made restitution nearly impossible
Presiding judge Lee Young-cheol stated that the court found no attempt by the defendants to mitigate the serious harm inflicted on victims. The ruling was reported by the newspaper Yeongnam Ilbo.
The judge described the crimes as particularly egregious, noting that the defendants’ actions had almost completely eliminated any chance for victims to recover their money. Both men were convicted under a special law aimed at preventing and compensating damages caused by telecommunications-based financial fraud.
Authorities also acknowledged that the exact number of victims affected by the voice phishing scheme remains unknown.

Warnings over growing misuse of stablecoins
The case highlights a broader trend that South Korean authorities have been warning about for some time. While cryptocurrency adoption in South Korea continues to accelerate, digital assets are increasingly being exploited for criminal purposes. Regulators reported a 54% year-on-year increase in suspicious crypto transactions last year.
Ministers and lawmakers are now urging faster government action, particularly with regard to stablecoins such as USDT and USDC. In September, lawmaker Jin Sung-joon warned that stablecoins are being used more frequently in foreign exchange crimes, including illegal currency trading.
He stressed the need for a coordinated and proactive strategy involving law enforcement bodies such as KoFIU and the Korea Customs Service to better track, identify, and prosecute criminal financial flows.

Lawmakers are also calling for additional policy measures to prevent illegal and unauthorized money transfers and to more effectively address financial crimes involving crypto assets.

#SouthKorea , #CryptoCrime , #CryptoFraud , #USDT , #CryptoNews

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Federal Court Confirms the Extent of SBF’s Forfeited Assets
The U.S. government has officially finalized the confiscation of Sam Bankman-Fried's (SBF) assets, the former CEO of the collapsed FTX exchange. Among the most notable items on the nearly $1 billion forfeiture list are $606 million from the sale of Robinhood shares and two private jets.
Court documents detail dozens of pages of assets that SBF owned before his conviction for fraud, including vast cryptocurrency holdings, bank accounts, investments, and political contributions.
💰 The Largest Asset: $606 Million in Robinhood Shares
The most valuable forfeited asset was $606 million from the sale of Robinhood shares, held by Emergent Fidelity Technologies, one of SBF’s firms.
Other seized financial assets include:
✅ $119 million in Tether (USDT) on Binance for Alameda Research
✅ $21 million in Marex, held for Emergent Fidelity Technologies
✅ $50 million in Moonstone Bank, designated for FTX Digital Markets
✅ $101 million in Silvergate, also for FTX Digital Markets
✅ $7 million in Flagstar Bank, held under SBF and another individual
✈️ Two Private Jets Among the Seized Assets
Luxury items seized in the case include two private jets:
2009 Bombardier Global 50002006 Embraer Legacy
These jets were part of Bankman-Fried’s extravagant lifestyle, despite his public image as a modest billionaire.
🔗 Alameda’s Crypto Portfolio – Millions in Digital Assets
Alongside traditional assets, the government seized a significant cryptocurrency portfolio belonging to Alameda Research, the trading firm co-founded by SBF.
📌 According to records, assets on Binance included:
$56 million in XRP (Ripple)$3.6 million in TRX (Tron)$3.4 million in ADA (Cardano)$2.3 million in BTC (Bitcoin)Numerous other smaller cryptocurrency holdings
💸 Political Donations Totaling Hundreds of Millions
Court filings also exposed a vast network of political contributions, with over 250 individual donations.
🔹 FTX and SBF played a major role in financing U.S. politics, with one in three members of Congress reportedly receiving funds from Bankman-Fried or other FTX executives.
🔹 Donations were distributed among various campaigns and organizations, spanning both federal and state-level political entities.
🔹 Documents suggest that some FTX executives made donations on behalf of SBF, possibly to bypass political funding limits.
⚖️ FTX Begins First Payouts to Creditors
Alongside the asset forfeiture ruling, FTX has begun its first round of repayments to creditors.
✅ A total of $1.2 billion has been distributed to those with smaller claims.
✅ These creditors received approximately 119% of their original holdings, based on the value they had at the time of FTX’s collapse in 2022.
✅ However, they missed out on the significant crypto market recovery that could have yielded even greater returns.
🔮 What’s Next?
🔹 More rounds of FTX creditor repayments are expected – the key question remains whether all victims will receive fair compensation.
🔹 Investigations into SBF’s political funding could lead to further legal consequences.
🔹 The fate of luxury assets, including the private jets, will likely be decided through government auctions.
👉 What do you think about the fate of Sam Bankman-Fried’s seized assets? Should the government redistribute the funds to affected investors? Share your thoughts! ⚖️🚀

#SamBankman-Fried , #FTX , #CryptoNewss , #CryptoFraud , #FTXScamAlert

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,,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.“

Seized Notebooks Revealed Sophisticated Scams
Hong Kong police uncovered a sophisticated fraud scheme that used artificial intelligence to deceive victims. The investigation led to the seizure of over HK$34 million (approximately USD 3.37 million). Notebooks confiscated by law enforcement revealed the criminals' methods, including the use of deepfake technology to appear more convincing.
How the Fraudsters Lured Their Victims
The fraudsters pretended to be wealthy single women, crafting stories about interests such as learning Japanese, playing golf, or tasting luxury wines worth over HK$100,000 (USD 12,850) per bottle. These methods were documented in the notebooks seized during the operation.
The investigation resulted in the arrest of 31 individuals connected to a criminal syndicate. This group used artificial intelligence to create realistic images of attractive women, which were then used to lure victims into romantic and investment scams.
The Problem of Deepfake Scams
Byron Boston, a former police officer and CEO of Crypto Track, warned that the combination of deepfake technology and social engineering presents significant challenges for investigators and law enforcement. AI-generated images make criminals more convincing and enable them to execute more complex scams.
Boston highlighted an incident from November 2022, where a fake video impersonating FTX founder Sam Bankman-Fried was used in a phishing attack targeting FTX users. This incident demonstrates how deepfake technologies can be exploited to steal cryptocurrency assets from victims.
Scams Targeting Young People
Confiscated materials revealed that the fraudsters specifically targeted young people seeking quick earnings. Victims were often convinced they were communicating with ideal women from Taiwan, Singapore, and Malaysia.
Challenges in Combating These Crimes
Boston emphasized that effective collaboration and swift action are key to fighting these sophisticated scams. However, he noted that many local law enforcement agencies, particularly in the U.S., lack the necessary tools and expertise to track stolen cryptocurrency or cooperate with international exchanges.
Criminals leveraging technologies like deepfake and social engineering remain a significant challenge for security forces worldwide.

#Deepfake , #CryptoFraud , #CryptoScams , #cybercrime , #CryptoNewss

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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.“

Date: May 7, 2025
Location: New York, USA

Alexander Mashinsky, the founder and former CEO of the now-defunct cryptocurrency lending platform Celsius Network, is facing a potential 20-year prison sentence. Federal prosecutors have accused him of orchestrating a deliberate and calculated fraud scheme that led to nearly $7 billion in customer losses. Mashinsky pleaded guilty in December 2024 to commodities fraud and securities fraud charges, admitting to manipulating the price of Celsius's proprietary token, CEL, and misleading investors about the company's financial health. He profited approximately $48 million by selling his CEL holdings at inflated prices before the company's collapse in July 2022.

Defense attorneys are seeking a more lenient sentence of no more than 366 days, arguing that Mashinsky's actions were not predatory and attributing the company's downfall to a broader market downturn. Sentencing is scheduled for May 8, 2025, in a Manhattan federal court.

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*Alexander Mashinsky, founder and former CEO of Celsius Network, leaves Manhattan federal court on July 13, 2023. *

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For more details, you can read the full article here:
🔗 Prosecutors seek 20-year prison term for founder of failed crypto platform Celsius
#celsiusNetwork

Commission Uncovers Massive Cryptocurrency Scam
Nigeria’s Economic and Financial Crimes Commission (EFCC) conducted a raid resulting in the arrest of 792 suspects involved in schemes known as crypto romance scams. The fraudsters convinced victims to invest in fake cryptocurrency projects, leading to significant financial losses.
Links to International Groups
EFCC spokesperson Wilson Uwujaren revealed that among those arrested were 148 Chinese nationals and 40 Filipino citizens. The scammers operated from a luxury building in Lagos, Nigeria’s commercial hub. Most of the victims were citizens of the United States and Europe.
During the raid, agents seized computers, mobile phones, and vehicles. Uwujaren stated that Nigerian fraudsters were recruited by international groups to target victims online using phishing techniques. Once the victims’ trust was gained, their information was handed over to foreign counterparts, who carried out the fraud.
Collaboration with International Partners
The EFCC announced it is working with international partners to identify potential links to organized crime. This collaboration aims to strengthen actions against similar fraudulent activities.
Another Case: Nigerian Scammer Defrauds Australians of $5 Million
The arrests follow a separate case involving Osang Otukpa, who allegedly defrauded 139 Australians of $5.04 million (8 million AUD) through a fraudulent cryptocurrency platform called Liquid Asset Group.
Otukpa reportedly used five different aliases and lured victims through social media. EFCC agents apprehended Otukpa on December 6, shortly after he landed at Murtala Mohammed International Airport in Lagos. According to reports, he will be charged once the investigation is complete.
Conclusion
The EFCC continues to intensify its efforts to combat cryptocurrency fraud, working closely with global partners to curb these illegal activities. The crackdown on 792 suspects and cases like Otukpa’s highlight Nigeria’s strengthened fight against financial crimes.

#hackers , #Cryptoscam , #cryptofraud , #CryptoSecurity , #CryptoNewss

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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.“