“There is no point to a lawsuit if it merely applies the law to lies” – SEC wins extreme remedy against digital currency exchange founder whose credibility is shot

The founder of a digital currency exchange lied so much to the Securities and Exchange Commission (“SEC“) during its investigation and to a California Court, and made himself so not credible, that a Court has recommended one of the harshest remedies available – to deprive the defendant of the constitutional right to be heard – […]

Money laundering and securities fraud indictment unsealed against key promoter of OneCoin who raked in hundreds of millions of dollars selling fake coins

After two years, the Attorney General for the Southern District of New York has unsealed the indictment against Karl Sebastian Greenwood, a key promoter of the Bulgarian initial coin offering, and supposed digital currency called OneCoin. Greenwood was allegedly extradited to the US from Thailand in 2018. Indictment unsealed In the indictment, Greenwood is charged, […]

SEC files complaint against digital currency business co-founders, alleging they lied during investigation, provided fake business records and launched illegal ICO

The Securities and Exchange Commission (“SEC“) has filed a complaint against an initial coin offering (“ICO“) and digital currency exchange platform called Dropil Inc. and three of its co-founders, Jeremy McAlpine, Zachary Matar and Patrick O’Hara, alleging that they took funds from the public on the basis of numerous untrue statements made on social media […]

SEC files injunction against digital currency executives who allegedly obtained investments on the basis of false representations

The US Securities and Exchange Commission (the “SEC“) filed a complaint 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 public. […]

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 allegedly blew through US$4.5 million on a $22k salary, used customer funds to live in a mansion together, take a private jet, gamble at casinos and drive around in exotic fast cars, charged 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. According to material filed in the case, they are alleged to have used US$4.5 million of money that belonged to customers to live a lavish lifestyle that […]

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, PRIZM is listed on […]