SEC files injunction against digital currency CEO who allegedly took money from consumers for a digital currency, made numerous material false representations on a radio show, including involvement of large advisory firm and defrauded the public

The US Securities and Exchange Commission (the “SEC“) filed for an injunction in Texas on March 16, 2020, against Robert Dunlap, Nicole Bowdler, the girlfriend of Dunlap, and a former Washington State Senator, David Schmidt, in connection with a digital currency they launched called Meta 1 coin (the “MetaCoin“) which raised US$4 million from the […]

American ICO lawyer and director of Vancouver Blockchain company, hit with more extortion charges

Grand jury indictment for Canadian director Steven Nerayoff, a US lawyer who advised a number of digital currency companies and initial coin offerings (“ICOs“) was indicted by a Grand Jury on January 10, 2020, in New York. Nerayoff is, or was, the Chairman of a British Columbia public company called Global Blockchain Technologies Corp. According […]

Digital currency exchange and ICO founder with £220,000 in cash to stash

Inner City Press, a blog that covers trials in the Southern District of New York, and which covered one of the trials associated with the initial coin offering (“ICO“) of OneCoin, released an email by the founder of OneCoin, Ruja Ignatova, where she said she had £220,000 in cash and wanted it stashed in London. […]

Two crypto dudes who blew through US$4.5 million on a $22k salary, allegedly used customer funds to live in a mansion together, take a private jet, gamble at casinos and drive around in exotic fast cars, charged in US with money laundering

Two Bitcoin guys, one who called himself the “Krypto King”, were charged in Arizona with money laundering and wire fraud after an investigation by the US Secret Service found that they used US$4.5 million of money that belonged to customers to live a lavish lifestyle that included living in a mansion together, riding around in […]

Over $3.2 billion missing in digital currency fraud in China; several Bitcoin exchanges shut down and many CEOs disappear with funds

A few weeks ago in China, several digital currency exchanges announced that they were suspending trading or shutting down operations altogether, leaving the recovery of potentially hundreds of millions of dollars of funds with those exchanges up in the air, and this after approximately US$3 billion went missing from two initial coin offerings (“ICOs“) in […]

A digital currency was launched by a Russian national on a sanctions list, with ties to a $100M Ponzi scheme

Russian on OFAC list launches a coin The Kharon Brief has an interesting article here about Aleksei Muratov (Алексей Муратов), also spelled Aleksey Muratov, a Russian foreign national who is on the US OFAC sanctions list here, who founded, launched and owns an initial coin offering called PRIZM. More surprisingly still, despite sanctions law, correspondent […]

“Take the money and run, and blame someone else” – a digital currency exchange founder’s exit strategy

The brother A criminal complaint filed in the Southern District of New York by the FBI against Konstantin Ignatova, an executive who helped to operate a digital currency exchange and launched an initial coin offering (“ICO“) called OneCoin, sheds some light on the sometimes murky world of a digital currency exchange founder. The money The […]

SEC obtains emergency order against Telegram’s ICO, which raised $1.7 billion from investors

Ex parte injunction The Securities and Exchange Commission (“SEC“) announced today that it filed an emergency application ex parte in US Federal District Court in Manhattan, and after a hearing, obtained a temporary order over the initial coin offering (“ICO“) launched by Telegram Group, Inc. (“Telegram“), the messaging application, which raised $1.7 billion from investors around […]

American ICO lawyer and chairman of Vancouver Blockchain company, arrested by FBI for extortion

The FBI arrested Steven Nerayoff, a US lawyer known for his work on advising ICOs, including the Canadian ICO Ethereum, and charged him with extortion. His case is in the Eastern District of New York. According to a complaint unsealed yesterday, Nerayoff is alleged to have threatened to destroy a company launching an ICO in […]

Several agencies take down Bitcoin mixing & anonymizing service

Working with Europol, several law enforcement agencies shut down a Bitcoin mixing and anonymizing service called Bestmixer, which was one of the largest mixing services for digital currencies. Mixing and anonymizing services or anonymizing exchanges process digital currencies on behalf of customers in order to make it difficult to trace the digital currencies. The purpose […]