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 […]

Canada’s securities commissions issue guidance to regulate Bitcoin exchanges and other digital currency or crypto assets

The CSA guidance The Canadian securities commissions, through the Canadian Securities Administrators (the “CSA“), issued guidance on digital currencies and digital currency exchanges in Canada, the impact of which fundamentally changes the legal landscape for digital currency exchanges and puts the vast majority of them under the supervision of provincial securities commissions. The securities commissions […]

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 […]

How did that happen?? A digital currency was launched by a Russian national on a US 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 […]

The Com Man: Canadian ICO founder who led a rich and famous lifestyle with private jet trips, diamond watches and fast cars, arrested for alleged Ponzi scheme – Part 1

Canadian ICO founder arrested; investors all over the world may be out at least $80 million A Canadian from Montreal, Quebec, named Aziz Com Mirza, was arrested in Dubai on October 27, 2019, and is chilling in the Al Awir jail, on allegations of running a Ponzi scheme. Mirza founded a Canadian initial coin offering […]

“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 Ignatov, an executive who operated a digital currency exchange and launched an initial coin offering (“ICO“) called OneCoin, sheds some light on the sometimes murky world of digital currency exchange founders. The money The ICO and its […]

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 with ties to Canadian Blockchain entities, arrested by FBI for alleged extortion

The FBI arrested Steven Nerayoff, a US lawyer known for his work on advising ICOs, including the Canadian ICO Ethereum, yesterday and he was charged  with extortion by the DoJ 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 […]

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 […]

FATF to finalize interpretation of virtual assets, digital currency exchanges and ICOs to require they be FIU-registered and supervised for AML compliance

In furtherance of the US approach to responsible innovation, the Financial Action Task Force (“FATF“)’s private sector consultation in Vienna two weeks ago, will help drive changes to FATF Recommendation 15 to bring digital currencies, ICOs, and digital currency exchanges more fully into the AML requirements in June 2019. The Vienna change will take effect […]