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Silk Road Bitcoin worth $3.36B officially seized by DOJ after 10 year investigation

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The U.S. Legal professional has introduced that the Division of Justice has seized $3.36 billion in Bitcoin in reference to the 2012 Silk Street fraud.

A press launch issued on Nov. 7 said that “Over 50,676 Bitcoin Hidden in Gadgets in Defendant JAMES ZHONG’s Dwelling” has been taken into custody following Zhong’s conviction at trial on Nov. 4. The Bitcoin seizure marks not simply the most important crypto haul within the historical past of the U.S. Division of Justice however the DOJ’s most important monetary seizure ever.

The information comes alongside the revelation that Zhong pleaded responsible to prices of fraud on Nov. 4 “to committing wire fraud in September 2012 when he unlawfully obtained over 50,000 Bitcoin from the Silk Street darkish internet web market.”

U.S. Legal professional Damian Williams mentioned:

“James Zhong dedicated wire fraud over a decade in the past when he stole roughly 50,000 Bitcoin from Silk Street.  For nearly ten years, the whereabouts of this huge chunk of lacking Bitcoin had ballooned into an over $3.3 billion thriller.  Due to state-of-the-art cryptocurrency tracing and good old school police work, regulation enforcement situated and recovered this spectacular cache of crime proceeds.”

Williams confirmed that a few of the Bitcoin was hidden in a “circuit board within the backside of a popcorn tin,” based on the discharge indicating that Zhong had hidden the crypto in such a fashion.

The U.S. Authorities sometimes sells off seized crypto in batches that means that over 50,000 BTC could hit the market within the coming weeks and months. It’s unknown whether or not the most recent cache of Bitcoin might be auctioned off, however it is not uncommon observe inside the U.S. authorized system to take action.

The case in opposition to Zhong said that he created a number of accounts on the Silk Street market earlier than “triggering over 140 transactions in fast succession with the intention to trick Silk Street’s withdrawal processing system into releasing roughly 50,000 Bitcoin.”

Zhong later obtained the identical quantity in Bitcoin Money following the Bitcoin arduous fork in 2017, which he additionally transformed into Bitcoin.

Following Zhong’s responsible plea on Nov. 4, the choose “entered a Consent Preliminary Order of Forfeiture as to Particular Property and Substitute Belongings/Cash Judgment forfeiting ZHONG’s curiosity in” the Bitcoin together with different belongings.

IRS brokers recovered over 50,000 Bitcoin in November 2021 from Zhong’s Georgia dwelling. Zhong additionally handed over further Bitcoin up till June of this yr. The preliminary Bitcoin was recovered from an underground protected and a single-board pc inside a popcorn tin.

Zhong is dealing with as much as 20 years in jail for the crime.



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Attackers use name of lead exchanges to target crypto startups

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Haru Invest

Tech large Microsoft uncovered an assault focusing on crypto startups utilizing a pdf file that makes use of the names OKX, Binance, and Huobi.

The pdf file is titled “OKX, Binance & Huobi VIP payment comparability.xls.” and features a malicious code that permits the attackers to entry the sufferer’s software program remotely, and run an excel macro in invisible mode on the background.

The assault

In keeping with the doc, Microsoft detected that the attacker had infiltrated discussion groups on Telegram and pretended to be the consultant of the trade platforms in query.

Attack overview
Assault overview

It was realized that the attacker had in-depth data within the matter as nicely, which he utilized to achieve the belief of varied crypto firms. Afterwards, the attacker satisfied its victims to obtain the doc in query.

Microsoft additionally warned that there may be different actors that use an identical methodology to infiltrate into programs.

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OneCoin crisis manager Frank Schneider to face trial in the US

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Haru Invest

The U.S. Division of Justice (DOJ) has revisited its case in opposition to Frank Schneider who served because the Disaster Supervisor for OneCoin — a $4 billion rip-off challenge.

OneCoin was a crypto-based Ponzi scheme led by Bulgarian nationwide Ruja Ignatova in 2014. The rip-off challenge collapsed in 2017 after elevating about $4 billion from traders throughout 175 nations. Since then authorities all over the world together with the DOJ have been trailing its masterminds.

Luxembourg-born Frank Schenider reportedly served as OneCoin’s Disaster Supervisor and labored carefully with the Cryptoqueen. Given his shut ties with the challenge founders, the DOJ has referred to as for his extradition to the U.S.

Earlier on Sept. 24, 2020, the DOJ filed a movement in opposition to Schenider. Nonetheless, the claims in opposition to him have been sealed till Dec. 5, 2022, when U.S. Legal professional Damian Williams accepted the unsealing of the movement for Schenider’s trial to begin.

An arrest warrant has been issued in opposition to Schneider who is anticipated to be extradited to the U.S. He’s set to face trials earlier than a Southern District Court docket on two-count expenses of wire fraud and cash laundering.

If confirmed responsible, Schneider danger dealing with as much as 40 years imprisonment along with forfeiting all property and financial proceeds from the OneCoin rip-off.

DOJ going after OneCoin masterminds

Whereas the CryptoQueen stays at massive, different shut allies of the OneCoin rip-off have been indicted.

British nationwide Christopher Hamilton was reportedly extradited to the U.S. earlier in August for trials with the DOJ.

OneCoin’s lawyer Mark Scott is dealing with a 20-year jail time period after being indicted in November 2019 for laundering about $400 million from the scheme.

The FBI is reportedly working with Konstantin Ignatov to trace down his “most wished” sister.

Posted In: U.S., Crime, Scams

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BitBoy alleges O’Leary was key player in Celsius collapse along with FTX

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Haru Invest

Youtuber Bitboy Crypto, aka Ben Armstrong, alleged the FTX alternate and Canadian entrepreneur Kevin O’Leary had been pivotal figures in taking down Celsius.

The crypto lending and borrowing platform halted withdrawals on June 13 to stabilize operations amid “excessive market situations.”

Weeks earlier than that, rumors had been circulating all was not effectively at Celsius, together with reviews of unfair liquidations and hurdles to withdrawing funds. On the time, former CEO Alex Mashinsky labeled such reviews as FUD, denying there have been issues on the firm.

Celsius filed for Chapter 11 chapter on July 13, with Mashinsky saying it was “the proper determination for our neighborhood and firm.”

Since then, the contagion has unfold additional into the trade, with a number of different crypto platforms submitting for chapter post-Terra implosion.

Within the aftermath, significantly within the case of FTX, components of the crypto trade have been uncovered as an over-leveraged, risk-intolerant Ponzi.

Bitboy spills the beans

All through the FTX collapse, Bitboy has thrust himself entrance and middle as a central individual in exposing the lies and corruption.

Talking just lately on the Altcoin Each day YouTube channel, Bitboy known as Kevin O’Leary “a snake,” saying “there’s been some dangerous stuff in his previous,” however didn’t elaborate additional on what it was.

Bitboy switched the dialog to O’Leary’s alleged ties with FTX and Sam Bankman-Fried (SBF), including the latter was “behind each crash this whole 12 months.”

“Kevin O’Leary was 100% complicit in serving to FTX crash Celsius. We all know now, Sam’s behind each crash this whole 12 months. Sam was behind Terra Luna, Sam was behind Celsius, Sam was behind Voyager, Sam was behind Three Arrows Capital… they’re a giant sport hunter.”

Explaining the motive as he sees it, Bitboy mentioned FTX taking advantage of every crash was a play to stave off its personal liquidity woes.

Nevertheless, Bitboy didn’t solely let Mashinsky off the hook, saying the previous CEO had his half to play in Celsius’s downfall and will likely be held accountable. He added that:

“The true rip-off of what FTX was doing by counterfeiting cash and inflating them on their markets, and also you perceive Sam has a big quick in on the CEL token.”

Celsius to zero, mentioned O’Leary

Referring to the notorious interview by which O’Leary known as SBF “probably the most sensible merchants” and nonetheless worthy of backing, Bitboy identified the peculiarity of constant to help the disgraced former FTX CEO.

He continued by saying that O’Leary-backed funding agency WonderFi was one of many final corporations to ship funds to FTX to maintain the corporate afloat whereas additionally mentioning a CoinDesk interview with O’Leary calling for Celsius to “go to zero.”

“No person else suppose it’s bizarre in June, proper in the beginning began occurring with Celsius, Kevin O’Leary is on CoinDesk saying, “I believe proper earlier than we’ve got a change out there, we’re going to need to see Celsius go to zero”?”

Bitboy mentioned competing alternate platforms, corresponding to Celsius, and initiatives vying in opposition to Solana had been focused by FTX.

Commenting on the potential authorized motion coming from these allegations, Bitboy mentioned he isn’t frightened as he has “onerous proof” of his claims.

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