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United States Department of Justice: Some Cryptocurrency Platforms Accused of Fraudulent Activity
02.07.2022
In particular, we are talking about such projects: Baller Ape Club NFT, EmiresX, Circle Society, Titanium Blockchain Infrastructure Services. Evidence has been found that their creators are stealing money from people who invest in projects.
According to bits.media, a case has been opened in the United States against the organizer of the Baller Ape Club. He is a Vietnamese citizen aged 26. The reason for the accusation is conspiracy for fraudulent purposes using electronic means of communication. In collusion, Le Anh Thuan and other co-conspirators were involved in the sale of non-fungible tokens that looked like different cartoon characters. After the first batch was sold, the project was closed. The site was taken down and Le Anh Thuan and his accomplices disappeared, taking with them the money of the people who had invested in the project. The amount was 2.6 million dollars.
According to law enforcement agencies, the activities of the organizers of the Baller Ape Club project were as follows: they removed liquidity from pools, converted tokens into other crypto-currencies and transferred them to different blockchains using decentralized exchangers. This was done so that the stolen funds could not be found. The recognition of the guilt of the creator of the project means his imprisonment for up to 40 years.
Also, the United States Department of Justice accuses the creators of the EmpiresX platform. The reason for the prosecution of two citizens of Brazil and a resident of Florida, who operated this platform, is the organization of the sale of securities that are unregistered. The implementation was carried out through deception. The organizers told the investors that they would get a big profit. In fact, they paid the last investors from the funds that they received from previous investors. In addition, they were engaged in money laundering using the cryptocurrency exchange of another country. If found guilty, the accomplices face imprisonment for up to 25-45 years, depending on the charges.
As for the Titanium Blockchain Infrastructure Services platform, its creator is accused of illegally selling TBIS crypto assets. It doesn't comply with securities laws. Michael Alan Stolleri (that's the name of the California founder of Titanium Blockchain Infrastructure Services) has raised a decent amount of money from investors from America and other countries. We are talking about 21 million dollars. The prosecution alleges that investors received fake information from Stolleri about TBIS. In addition, he was engaged in publishing false reviews on the site about his activities and fictitious information that various well-known companies cooperate with him. This was done in order to lull the vigilance of depositors. Now the enterprising businessman is waiting for imprisonment for up to 20 years.
The founder of the Circle Society platform has also been heavily indicted. It consists in the following: in order to lure large sums of money from investors, a resident of the United States deceived them that he had a trading bot at his disposal, capable of making at least 17,000 transactions within 60 minutes on various cryptocurrency exchanges. Investors were promised a large income (at least 500% of the investment amount). In order to lull their vigilance, David Saffron (that's the name of the owner of the Circle Society) organized meetings in expensive mansions. This made transactions easier. In this fraudulent way, he was able to get about $ 12 million. Now Saffron is facing a prison sentence of up to 115 years.
Last month, the United States Department of Justice asked law enforcement agencies of all countries to strengthen the fight against cryptocurrency crimes, monitor the implementation of KYC policies, and standardize AML rules.
According to bits.media, a case has been opened in the United States against the organizer of the Baller Ape Club. He is a Vietnamese citizen aged 26. The reason for the accusation is conspiracy for fraudulent purposes using electronic means of communication. In collusion, Le Anh Thuan and other co-conspirators were involved in the sale of non-fungible tokens that looked like different cartoon characters. After the first batch was sold, the project was closed. The site was taken down and Le Anh Thuan and his accomplices disappeared, taking with them the money of the people who had invested in the project. The amount was 2.6 million dollars.
According to law enforcement agencies, the activities of the organizers of the Baller Ape Club project were as follows: they removed liquidity from pools, converted tokens into other crypto-currencies and transferred them to different blockchains using decentralized exchangers. This was done so that the stolen funds could not be found. The recognition of the guilt of the creator of the project means his imprisonment for up to 40 years.
Also, the United States Department of Justice accuses the creators of the EmpiresX platform. The reason for the prosecution of two citizens of Brazil and a resident of Florida, who operated this platform, is the organization of the sale of securities that are unregistered. The implementation was carried out through deception. The organizers told the investors that they would get a big profit. In fact, they paid the last investors from the funds that they received from previous investors. In addition, they were engaged in money laundering using the cryptocurrency exchange of another country. If found guilty, the accomplices face imprisonment for up to 25-45 years, depending on the charges.
As for the Titanium Blockchain Infrastructure Services platform, its creator is accused of illegally selling TBIS crypto assets. It doesn't comply with securities laws. Michael Alan Stolleri (that's the name of the California founder of Titanium Blockchain Infrastructure Services) has raised a decent amount of money from investors from America and other countries. We are talking about 21 million dollars. The prosecution alleges that investors received fake information from Stolleri about TBIS. In addition, he was engaged in publishing false reviews on the site about his activities and fictitious information that various well-known companies cooperate with him. This was done in order to lull the vigilance of depositors. Now the enterprising businessman is waiting for imprisonment for up to 20 years.
The founder of the Circle Society platform has also been heavily indicted. It consists in the following: in order to lure large sums of money from investors, a resident of the United States deceived them that he had a trading bot at his disposal, capable of making at least 17,000 transactions within 60 minutes on various cryptocurrency exchanges. Investors were promised a large income (at least 500% of the investment amount). In order to lull their vigilance, David Saffron (that's the name of the owner of the Circle Society) organized meetings in expensive mansions. This made transactions easier. In this fraudulent way, he was able to get about $ 12 million. Now Saffron is facing a prison sentence of up to 115 years.
Last month, the United States Department of Justice asked law enforcement agencies of all countries to strengthen the fight against cryptocurrency crimes, monitor the implementation of KYC policies, and standardize AML rules.
