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. […]

US unseals money laundering indictment against owner of Bitcoin mixing service that was used by Canadian darknet site

Indictment for mixing service On February 13, 2020, the US government unsealed an indictment against Larry Dean Harmon, the alleged founder of a Bitcoin mixing Bitcoin service, and of a darknet search engine that hooked up with the now-defunct illegal Canadian darknet site called AlphaBay. The mixing service was called Helix and the darknet search […]

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 […]

UK Bitcoin drug dealer who imported illegal drugs from Canada on the darknet, sentenced to 8 years in jail

A UK man, Paul Johnson, was sentenced to eight years in jail in the UK for operating a darknet drug trafficking business from the attic of his home. In order to obfuscate what he was doing, he set up a company called “Labrador Tea Company” and used it to buy illegal drugs from Canadians in […]

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 […]

Canadian CEO of Silk Road drug market who bragged that US law enforcement “don’t have sh*t on me”, nabbed and pleads guilty in the US

One of the kingpins of Silk Road, the online darknet drug market that operated with Bitcoin, and its alleged CEO, Roger Clark, a Canadian, pled guilty on Thursday in New York to conspiracy to distribute narcotics. He faces a term of incarceration of 20 years. Clark was extradited from Thailand in 2018, and was charged […]

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 […]

Bitcoin SIM swapper charged with stealing $50 million, arrested in British Columbia

$50 Million SIM-swapped A man from Montreal, Samy Bensaci, who allegedly stole US$50 million in Bitcoin from US residents, was arrested in Victoria, British Columbia, and removed to Ontario for prosecution, where he has since been released on bail, reported La Presse today. The theft of $50 million happened during 2018 and 2019, according to […]

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. Donetsk People’s Republic Muratov is the Central […]