#fraud

The U.S. Securities and Exchange Commission (SEC) has charged an additional 17 managers connected to the cryptocurrency platform CryptoFX, accusing them of orchestrating a $300 million Ponzi scheme. This action comes 18 months after the SEC banned CryptoFX's operations and accused its founders of fraud.

John Reed Stark, a lawyer and former SEC enforcement chief, has labeled the effort by the leadership of the now-bankrupt crypto exchange FTX and its associated legal firms to relaunch the platform as blatant fraud. He predicts that by the end of 2024, each attorney involved in this case will afford to buy a luxury beach house, effectively financed by the funds of FTX users.

The U.S. Department of Justice has leveled charges against three American individuals for committing fraud through SIM card swaps. Bloomberg reports that among the companies affected was the cryptocurrency exchange FTX, which suffered a loss of over $400 million in client assets in the aftermath of its bankruptcy announcement.

The U.S. Commodity Futures Trading Commission (CFTC) has brought to light a scheme by Debiex's staff, who allegedly developed personal and even romantic relationships with potential customers to draw them into their trading platform. The CFTC has now sued Debiex, charging them with fraudulent activities.

David Pan, the founder of Taiwan's ACE Exchange, has been arrested under suspicion of fraud. His arrest is part of a wider operation that led to the detention of 13 other individuals and the seizure of over $6.4 million in suspected illegal funds.

Three individuals in the United States have been arrested for allegedly stealing over $10 million from banks and financial institutions, with the stolen funds later converted into cryptocurrencies.

GROK, a meme token inspired by Elon Musk's artificial intelligence ventures, experienced a dramatic 50% drop in value after its developer was exposed.

Former Voyager Digital CEO Steve Ehrlich is facing legal action from the Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC) for alleged fraudulent activities and customer deception.

The Securities and Exchange Commission (SEC) has issued a press release targeting Brian Sewell, founder of Rockwell Capital Management. Sewell reportedly encouraged hundreds of online students to invest in his fund, claiming it employed cutting-edge AI-based crypto trading strategies.

Taiwan's law enforcement agencies have requested the court to authorize the arrest of ACE Exchange's president Chenhuan Wang and four others on accusations of money laundering and fraud. They're also seeking to limit their interaction with others while under detention.

In a significant move by U.S. authorities, Rodney Burton, a key promoter of the cryptocurrency venture HyperVerse, has been detained on accusations of conducting a fraud scheme exceeding $7 million. According to the U.S. Tax Service's filings, he masterminded a financial pyramid masquerading as a crypto investment opportunity.

The U.S. Prosecutors have chosen not to pursue extra charges against Sam Bankman-Fried (SBF) regarding bribery of officials, unauthorized money transfers, and bank fraud. Law enforcement determined that this approach was the most pragmatic.

Dmytro Budorin, the CEO of blockchain security auditor Hacken, has laid out five critical guidelines for safeguarding investments against fraud in crypto projects.

Aurelien Michel, the developer behind the Mutant Ape Planet digital collection, has admitted to orchestrating a $3 million fraud. Together with his accomplices, he launched a knock-off of the popular Mutant Ape Yacht Club series, duping investors with promises of perks and privileges for NFT owners.

New York Attorney General Letitia James has filed a lawsuit against major cryptocurrency firms, including Gemini, Genesis Global Capital, and Digital Currency Group, accusing them of a $1 billion fraud.

The Brazilian Congressional Committee has recommended that local law enforcement authorities bring charges against Changpeng Zhao and three other executives of Binance on allegations of fraud and other financial crimes.

Federal prosecutors are urging the court to exclude any references to Anthropic during Sam Bankman-Fried's fraud trial.