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Roman Storm Faces Up to 5 Years in Prison After Hung Jury in Tornado Cash Money Laundering Case
Roman Storm, co-founder of Tornado Cash, stood before a federal jury in Manhattan on August 6, 2025. The high-stakes trial sought to determine whether he was guilty of money laundering and sanctions violations, but the case ended with a partial verdict — the jury couldn’t reach a unanimous decision.
Although Storm faced the possibility of up to 20 years in prison, he was ultimately found guilty on just one lesser charge: conspiracy to operate an unlicensed money transmission business, which carries a maximum sentence of five years.
Tornado Cash: Privacy Tool or Laundering Machine?
According to prosecutors, Tornado Cash became a haven for cybercriminals, who used it to launder over $1 billion in stolen crypto assets, including funds linked to the notorious North Korean Lazarus Group.
Storm faced serious charges, including money laundering and violating international sanctions, both carrying sentences of up to 20 years. But after more than three weeks of proceedings, the jury failed to agree on those major charges, leading the judge to dismiss the panel.
Final Verdict: One Guilty Count, No Consensus on the Rest
In the end, Roman Storm was convicted on only one count — conspiring to operate an unlicensed money transmission service. Despite avoiding the most severe penalties, Storm appeared visibly dejected when the verdict was read.
He was not taken into custody after the verdict, though prosecutors argued he poses a flight risk due to his ties to Russia and access to millions of dollars in Ethereum.
The Defense: Tornado Cash Was Not Made for Crime
Storm’s legal team insisted that Tornado Cash was designed as a legitimate tool for blockchain privacy, and that developers shouldn't be held liable for how others use their code.
They sought to introduce private messages showing Storm’s own concern about the protocol being misused by bad actors. However, Judge Katherine Polk Failla excluded these messages, calling them irrelevant.
The judge argued that the messages did not reflect Storm’s intent at the time he helped build the protocol. Storm’s lawyers countered that the evidence would have shown he never meant for the tool to be used by criminals.
The Bigger Question: Can Developers Be Held Accountable?
This case reignites a long-running debate in tech and legal circles: Should developers be held responsible for how people use open-source tools?
Storm and his defense argue that once a decentralized protocol is launched, its creators cannot control how it is used. But prosecutors claim Storm knowingly marketed Tornado Cash as a money laundering solution — and must therefore be held accountable.
To secure a conviction on the more serious charges, the government would need to prove beyond a reasonable doubt that Storm created and operated Tornado Cash specifically to facilitate cybercrime.
Storm maintains that he built Tornado Cash for users who value privacy on the blockchain, and that he had no control over who used it or why.
A Precedent the Crypto World Is Watching Closely
The trial has drawn intense scrutiny from across the crypto industry. Its outcome could set a legal precedent defining how developers of decentralized applications are treated under U.S. law, especially regarding user conduct.
For now, the jury’s partial verdict has left more questions than answers — and if no settlement is reached, another round in court may be coming.
#TornadoCash , #Cryptolaw , #MoneyLaundering , #CryptoCrime , #Web3Security
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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Although Storm faced the possibility of up to 20 years in prison, he was ultimately found guilty on just one lesser charge: conspiracy to operate an unlicensed money transmission business, which carries a maximum sentence of five years.
Tornado Cash: Privacy Tool or Laundering Machine?
According to prosecutors, Tornado Cash became a haven for cybercriminals, who used it to launder over $1 billion in stolen crypto assets, including funds linked to the notorious North Korean Lazarus Group.
Storm faced serious charges, including money laundering and violating international sanctions, both carrying sentences of up to 20 years. But after more than three weeks of proceedings, the jury failed to agree on those major charges, leading the judge to dismiss the panel.
Final Verdict: One Guilty Count, No Consensus on the Rest
In the end, Roman Storm was convicted on only one count — conspiring to operate an unlicensed money transmission service. Despite avoiding the most severe penalties, Storm appeared visibly dejected when the verdict was read.
He was not taken into custody after the verdict, though prosecutors argued he poses a flight risk due to his ties to Russia and access to millions of dollars in Ethereum.
The Defense: Tornado Cash Was Not Made for Crime
Storm’s legal team insisted that Tornado Cash was designed as a legitimate tool for blockchain privacy, and that developers shouldn't be held liable for how others use their code.
They sought to introduce private messages showing Storm’s own concern about the protocol being misused by bad actors. However, Judge Katherine Polk Failla excluded these messages, calling them irrelevant.
The judge argued that the messages did not reflect Storm’s intent at the time he helped build the protocol. Storm’s lawyers countered that the evidence would have shown he never meant for the tool to be used by criminals.
The Bigger Question: Can Developers Be Held Accountable?
This case reignites a long-running debate in tech and legal circles: Should developers be held responsible for how people use open-source tools?
Storm and his defense argue that once a decentralized protocol is launched, its creators cannot control how it is used. But prosecutors claim Storm knowingly marketed Tornado Cash as a money laundering solution — and must therefore be held accountable.
To secure a conviction on the more serious charges, the government would need to prove beyond a reasonable doubt that Storm created and operated Tornado Cash specifically to facilitate cybercrime.
Storm maintains that he built Tornado Cash for users who value privacy on the blockchain, and that he had no control over who used it or why.
A Precedent the Crypto World Is Watching Closely
The trial has drawn intense scrutiny from across the crypto industry. Its outcome could set a legal precedent defining how developers of decentralized applications are treated under U.S. law, especially regarding user conduct.
For now, the jury’s partial verdict has left more questions than answers — and if no settlement is reached, another round in court may be coming.
#TornadoCash , #Cryptolaw , #MoneyLaundering , #CryptoCrime , #Web3Security
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Over 1,000 Crypto Ponzi Schemes Discovered in Russia in Early 2025
Russia's financial watchdogs are facing a surge in crypto-related fraud. In the first half of 2025 alone, the Central Bank of Russia reported identifying more than 4,100 entities involved in illegal financial activities — with over 1,000 of them operating as classic Ponzi schemes promising "guaranteed" returns on crypto investments.
Crypto Fraud on the Rise Despite Decline in Traditional Scams
While the number of illegal forex dealers and traditional pseudo-investment platforms is slightly declining, fraudsters are increasingly turning to the world of crypto. Digital assets have become the bait of choice, used to lure in unsuspecting investors with promises of fast profits. Most of these crypto schemes operated as short-term online projects, aggressively promoted via social media.
Vast Majority Involved Cryptocurrency Payments
According to the Central Bank’s data, over 80% of these identified schemes required investors to pay in cryptocurrency, while the remaining cases used foreign payment systems. Last year, only 59% of such scams accepted crypto, showing a clear upward trend.
Authorities also observed a growing number of fake exchanges, pretending to offer crypto trading while merely collecting deposits from victims.
Illicit Crypto Lending and Debt Harassment
Another rising concern is the spread of unlicensed lenders offering crypto-based loans. Although the loan amounts are listed in rubles, the disbursement typically comes in stablecoins like Tether (USDT). Borrowers are then expected to repay in either crypto or Russian fiat. Numerous complaints have been filed over unethical and aggressive debt collection tactics used by these illegal lenders.
Telegram: A Hub for Crypto Scammers
To recruit new victims, fraudsters launched more than 170 Telegram channels promoting their schemes. In response, authorities shut down over 3,000 social media pages and advertising platforms, and in total more than 11,000 online resources linked to financial scams — potentially reaching up to 20 million users.
As a result, 240 legal proceedings have been initiated under the Russian Code of Administrative Offenses.
Tighter Monitoring of Crypto Transactions
In collaboration with law enforcement, Russia’s central bank has been expanding its database of suspicious cryptocurrency wallets, which now includes over 1,800 addresses tied to illicit activities. A special tracking system links these wallets with fiat currency transactions, allowing authorities to flag potentially high-risk users — even on peer-to-peer platforms.
According to the bank, more than 600 payment credentials were subject to restrictions in the first half of 2025, forming part of a broader anti-money laundering strategy.
#Cryptoscam , #russia , #CryptoNews , #CryptoCommunity , #CryptoCrime
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Crypto Fraud on the Rise Despite Decline in Traditional Scams
While the number of illegal forex dealers and traditional pseudo-investment platforms is slightly declining, fraudsters are increasingly turning to the world of crypto. Digital assets have become the bait of choice, used to lure in unsuspecting investors with promises of fast profits. Most of these crypto schemes operated as short-term online projects, aggressively promoted via social media.
Vast Majority Involved Cryptocurrency Payments
According to the Central Bank’s data, over 80% of these identified schemes required investors to pay in cryptocurrency, while the remaining cases used foreign payment systems. Last year, only 59% of such scams accepted crypto, showing a clear upward trend.
Authorities also observed a growing number of fake exchanges, pretending to offer crypto trading while merely collecting deposits from victims.
Illicit Crypto Lending and Debt Harassment
Another rising concern is the spread of unlicensed lenders offering crypto-based loans. Although the loan amounts are listed in rubles, the disbursement typically comes in stablecoins like Tether (USDT). Borrowers are then expected to repay in either crypto or Russian fiat. Numerous complaints have been filed over unethical and aggressive debt collection tactics used by these illegal lenders.
Telegram: A Hub for Crypto Scammers
To recruit new victims, fraudsters launched more than 170 Telegram channels promoting their schemes. In response, authorities shut down over 3,000 social media pages and advertising platforms, and in total more than 11,000 online resources linked to financial scams — potentially reaching up to 20 million users.
As a result, 240 legal proceedings have been initiated under the Russian Code of Administrative Offenses.
Tighter Monitoring of Crypto Transactions
In collaboration with law enforcement, Russia’s central bank has been expanding its database of suspicious cryptocurrency wallets, which now includes over 1,800 addresses tied to illicit activities. A special tracking system links these wallets with fiat currency transactions, allowing authorities to flag potentially high-risk users — even on peer-to-peer platforms.
According to the bank, more than 600 payment credentials were subject to restrictions in the first half of 2025, forming part of a broader anti-money laundering strategy.
#Cryptoscam , #russia , #CryptoNews , #CryptoCommunity , #CryptoCrime
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
India Freezes Assets of Man Jailed in the U.S. for $20M Crypto Scam
The Indian government has cracked down on a global crypto fraud scheme—freezing nearly $5 million worth of assets belonging to a citizen currently imprisoned in the United States for running a large-scale phishing operation involving fake Coinbase websites. The man behind the scheme, 31-year-old Chirag Tomar, is now serving a five-year sentence in a U.S. federal prison.
Fake Coinbase, Real Damage
Tomar exploited users' trust in the popular exchange Coinbase by creating sophisticated fake websites that harvested login credentials. Victims were then redirected to fake customer support hotlines, where scammers used social engineering to obtain security codes or remote access to users' computers—ultimately draining their crypto wallets.
Investigators revealed that Tomar stole over $72 million in digital assets through this scheme. He laundered the stolen funds via trading platforms and converted them into Indian rupees. According to India's Enforcement Directorate (ED), Tomar spent the money on luxury watches, sports cars like Lamborghinis and Porsches, and expensive travel.
18 Properties, Frozen Accounts & Ongoing Investigation
India responded decisively to Tomar’s fraud. Authorities froze 18 properties in Delhi and bank accounts linked to his family and business partners. The seized assets are valued at $4.8 million. The case remains active, and further investigation is underway.
“Escaping crypto fraud is no longer possible—criminals will be tracked, exposed, and jailed,” said Sudhakar Lakshmanaraja of the Digital South Trust.
Officials believe this may be just the tip of the iceberg. Raids have already been conducted in Delhi and Mumbai, and further asset seizures or arrests may follow as authorities continue to trace money tied to the international scam network.
#Cryptoscam , #PhishingAlert , #CryptoCrime , #cybercrime , #CryptoNews
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Fake Coinbase, Real Damage
Tomar exploited users' trust in the popular exchange Coinbase by creating sophisticated fake websites that harvested login credentials. Victims were then redirected to fake customer support hotlines, where scammers used social engineering to obtain security codes or remote access to users' computers—ultimately draining their crypto wallets.
Investigators revealed that Tomar stole over $72 million in digital assets through this scheme. He laundered the stolen funds via trading platforms and converted them into Indian rupees. According to India's Enforcement Directorate (ED), Tomar spent the money on luxury watches, sports cars like Lamborghinis and Porsches, and expensive travel.
18 Properties, Frozen Accounts & Ongoing Investigation
India responded decisively to Tomar’s fraud. Authorities froze 18 properties in Delhi and bank accounts linked to his family and business partners. The seized assets are valued at $4.8 million. The case remains active, and further investigation is underway.
“Escaping crypto fraud is no longer possible—criminals will be tracked, exposed, and jailed,” said Sudhakar Lakshmanaraja of the Digital South Trust.
Officials believe this may be just the tip of the iceberg. Raids have already been conducted in Delhi and Mumbai, and further asset seizures or arrests may follow as authorities continue to trace money tied to the international scam network.
#Cryptoscam , #PhishingAlert , #CryptoCrime , #cybercrime , #CryptoNews
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
LuBian Bitcoin Heist Revealed: $14.5B in BTC Stolen From Chinese Mining Pool
Blockchain intelligence firm Arkham has disclosed that 127,426 $BTC , worth nearly $14.5 billion today, was quietly stolen from Chinese mining pool LuBian in late 2020. The heist, which had remained hidden from the public for almost four years, now ranks among the largest crypto thefts in history by current valuation.
👉In Brief
Arkham Intelligence revealed that 127,426 BTC were stolen from Chinese mining pool LuBian in December 2020, making it one of the largest crypto thefts ever by value.
The attacker may have exploited a flaw in LuBian’s private key generation algorithm, allowing for a brute-force breach.
Despite the magnitude, the hack remained unknown until now. None of the stolen BTC has moved since July 2024, and LuBian has tried contacting the hacker via OP_RETURN messages.
💥Mysterious disappearance explained
LuBian emerged in April 2020, branding itself as “the safest high-yielding mining pool in the world.” Within months, it became the sixth-largest Bitcoin mining pool globally. But by February 2021, the platform vanished without warning. While many speculated that Chinese government pressure or an internal pivot had triggered the shutdown, Arkham’s findings point to a far more dramatic cause: a catastrophic hack.
According to Arkham, LuBian was first compromised on December 28, 2020, when over 90% of its Bitcoin holdings were drained. The next day, an additional $6 million in BTC and USDT was stolen from a LuBian wallet on Bitcoin’s Omni layer. At the time, the entire haul was worth about $3.5 billion, still more than any other single theft to date.
💥How the exploit may have happened
Arkham researchers believe the attacker exploited a vulnerability in the algorithm LuBian used to generate private keys, making them susceptible to brute-force attacks. The analytics platform wrote:
It appears that LuBian was using an algorithm to generate its private keys that was susceptible to brute-force attacks.
Despite the theft, LuBian managed to preserve 11,886 BTC, currently worth about $1.35 billion, which it still controls.
What’s more surprising: the attacker has not moved any of the stolen Bitcoin since July 2024, suggesting either fear of being tracked or plans for a more covert liquidation strategy.
💥A plea through the blockchain
LuBian reached out directly to the attacker via Bitcoin’s OP_RETURN field, a method that embeds small messages into blockchain transactions. In two messages, the company appealed:
To the whitehat who is saving our asset, you can contact us… to discuss the return of asset and your reward.
This implies LuBian initially hoped the attacker may have been an ethical hacker willing to negotiate. So far, there’s been no public indication of any returned funds.
#CryptoCrime
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👉In Brief
Arkham Intelligence revealed that 127,426 BTC were stolen from Chinese mining pool LuBian in December 2020, making it one of the largest crypto thefts ever by value.
The attacker may have exploited a flaw in LuBian’s private key generation algorithm, allowing for a brute-force breach.
Despite the magnitude, the hack remained unknown until now. None of the stolen BTC has moved since July 2024, and LuBian has tried contacting the hacker via OP_RETURN messages.
💥Mysterious disappearance explained
LuBian emerged in April 2020, branding itself as “the safest high-yielding mining pool in the world.” Within months, it became the sixth-largest Bitcoin mining pool globally. But by February 2021, the platform vanished without warning. While many speculated that Chinese government pressure or an internal pivot had triggered the shutdown, Arkham’s findings point to a far more dramatic cause: a catastrophic hack.
According to Arkham, LuBian was first compromised on December 28, 2020, when over 90% of its Bitcoin holdings were drained. The next day, an additional $6 million in BTC and USDT was stolen from a LuBian wallet on Bitcoin’s Omni layer. At the time, the entire haul was worth about $3.5 billion, still more than any other single theft to date.
💥How the exploit may have happened
Arkham researchers believe the attacker exploited a vulnerability in the algorithm LuBian used to generate private keys, making them susceptible to brute-force attacks. The analytics platform wrote:
It appears that LuBian was using an algorithm to generate its private keys that was susceptible to brute-force attacks.
Despite the theft, LuBian managed to preserve 11,886 BTC, currently worth about $1.35 billion, which it still controls.
What’s more surprising: the attacker has not moved any of the stolen Bitcoin since July 2024, suggesting either fear of being tracked or plans for a more covert liquidation strategy.
💥A plea through the blockchain
LuBian reached out directly to the attacker via Bitcoin’s OP_RETURN field, a method that embeds small messages into blockchain transactions. In two messages, the company appealed:
To the whitehat who is saving our asset, you can contact us… to discuss the return of asset and your reward.
This implies LuBian initially hoped the attacker may have been an ethical hacker willing to negotiate. So far, there’s been no public indication of any returned funds.
#CryptoCrime
🚀🚀🚀 FOLLOW BE_MASTER BUY_SMART 💰💰💰
Appreciate the work. 😍 Thank You. 👍 FOLLOW BeMaster BuySmart 🚀 TO FIND OUT MORE $$$$$ 🤩 BE MASTER BUY SMART 💰🤩
🚀🚀🚀 NOT JUST LIKE BUT, CLICK FOLLOW BE MASTER BUY SMART - Thank You.
Crypto Kidnapping Case Takes a Twist!
In a breathtaking turn of events, the suspected kidnapper in the high-profile Manhattan crypto kidnapping case has been released on a $1 million bond. The incident, which gripped the city earlier this year, involved an Italian national being held captive in his own townhouse for days, with the perpetrator demanding Bitcoin as ransom.
Prosecutors granted the suspect's release after posting the hefty bond, raising many questions. The case has been a headline grabber, showcasing the dark side of the crypto world, and serves as a stark reminder of the risks associated with the industry. Law enforcement agencies around the world are increasingly focusing on crypto-related crimes, as the anonymity of blockchain transactions can attract unscrupulous individuals.
This development serves as a timely warning to be vigilant, as the line between the physical and digital worlds of crypto is blurring. With the suspect now out on bond, the case continues to unfold, and the courts will now decide the outcome. Stay tuned for further updates, and remember to protect yourself and your holdings!
#CryptoCrime #bitcoin $BTC
In a breathtaking turn of events, the suspected kidnapper in the high-profile Manhattan crypto kidnapping case has been released on a $1 million bond. The incident, which gripped the city earlier this year, involved an Italian national being held captive in his own townhouse for days, with the perpetrator demanding Bitcoin as ransom.
Prosecutors granted the suspect's release after posting the hefty bond, raising many questions. The case has been a headline grabber, showcasing the dark side of the crypto world, and serves as a stark reminder of the risks associated with the industry. Law enforcement agencies around the world are increasingly focusing on crypto-related crimes, as the anonymity of blockchain transactions can attract unscrupulous individuals.
This development serves as a timely warning to be vigilant, as the line between the physical and digital worlds of crypto is blurring. With the suspect now out on bond, the case continues to unfold, and the courts will now decide the outcome. Stay tuned for further updates, and remember to protect yourself and your holdings!
#CryptoCrime #bitcoin $BTC
Crypto Crime Update
In a major crypto crime case, the founders of crypto mixing service StormX have pleaded guilty to charges of conspiring to commit money laundering and operating an unlicensed money transmitting business.
The case, which has been building over several years, has finally reached a critical point, with the founders admitting guilt. This service, StormX, was used to obfuscate the origin of cryptocurrencies, primarily Bitcoin, and investigators managed to track down the operators and reveal their illegal activities.
The investigation uncovered that StormX had laundered over $39 million in Bitcoin, helping to conceal criminal proceeds. It's a stark reminder that regulatory bodies are watching closely and taking action against those enabling criminal activities in the crypto space.
The founders now face significant jail time and hefty fines, with the case serving as a warning to others in the industry. With increasing regulation and scrutiny, operating in the crypto space requires compliance and transparency.
#CryptoCrime #StormX #MoneyLaundering #BlockchainForensics
Drop a like and share your thoughts on this latest crypto crime story!
$BTC
In a major crypto crime case, the founders of crypto mixing service StormX have pleaded guilty to charges of conspiring to commit money laundering and operating an unlicensed money transmitting business.
The case, which has been building over several years, has finally reached a critical point, with the founders admitting guilt. This service, StormX, was used to obfuscate the origin of cryptocurrencies, primarily Bitcoin, and investigators managed to track down the operators and reveal their illegal activities.
The investigation uncovered that StormX had laundered over $39 million in Bitcoin, helping to conceal criminal proceeds. It's a stark reminder that regulatory bodies are watching closely and taking action against those enabling criminal activities in the crypto space.
The founders now face significant jail time and hefty fines, with the case serving as a warning to others in the industry. With increasing regulation and scrutiny, operating in the crypto space requires compliance and transparency.
#CryptoCrime #StormX #MoneyLaundering #BlockchainForensics
Drop a like and share your thoughts on this latest crypto crime story!
$BTC
Arizona Man Pleads Guilty: Crypto AI Bots and Fake “Federal Reserve” Land Him in Court
Vincent Anthony Mazzotta Jr., also known by aliases such as “Vincent Midnight” and “Director Vinchenzo,” has pleaded guilty nearly two years after his indictment for orchestrating a $13 million cryptocurrency fraud. The elaborate scheme involved fake trading bots powered by artificial intelligence and a fabricated government agency used to further deceive victims.
Sophisticated Crypto Scam
Mazzotta operated platforms like Mind Capital and Cloud9Capital, which falsely promised high returns through automated AI-based crypto trading bots. In reality, the operation functioned as a pyramid scheme. Instead of investing clients’ funds, Mazzotta and his accomplices splurged on private jets, luxury hotels, rental mansions, and personal security.
To hide the trail of stolen money, the group laundered funds using crypto mixers. When the platforms began collapsing, they vanished without notice, leaving investors with no access to their funds.
Round Two: A Fake Government Agency
In a desperate bid to regain investor trust, Mazzotta and his team created a fictitious government entity called the “Federal Crypto Reserve” (FCR), claiming it would investigate the missing funds. Victims were charged new fees for these false services—effectively falling prey to a second layer of fraud.
Later, when one of his associates was indicted in 2022, Mazzotta began obstructing justice: he destroyed evidence, manipulated documents, and falsified business records linked to Runway Beauty Inc.
Facing Justice
Mazzotta has now pleaded guilty to two charges—money laundering and conspiracy to obstruct justice. He faces up to 15 years in federal prison. A sentencing date has not yet been set.
More Scams Unfold
His case isn’t isolated. In June 2025, Dwayne Golden was sentenced to 97 months for orchestrating a $40 million crypto Ponzi scheme through platforms such as EmpowerCoin and ECoinPlus. Golden also tried to obstruct justice by destroying evidence and misleading federal investigators.
U.S. authorities have recently stepped up enforcement against crypto fraud. The Department of Justice is actively pursuing asset forfeiture in hopes of partially reimbursing victims.
#CryptoFraud , #MoneyLaundering , #CryptoCrime , #CryptoSecurity , #CryptoNews
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Sophisticated Crypto Scam
Mazzotta operated platforms like Mind Capital and Cloud9Capital, which falsely promised high returns through automated AI-based crypto trading bots. In reality, the operation functioned as a pyramid scheme. Instead of investing clients’ funds, Mazzotta and his accomplices splurged on private jets, luxury hotels, rental mansions, and personal security.
To hide the trail of stolen money, the group laundered funds using crypto mixers. When the platforms began collapsing, they vanished without notice, leaving investors with no access to their funds.
Round Two: A Fake Government Agency
In a desperate bid to regain investor trust, Mazzotta and his team created a fictitious government entity called the “Federal Crypto Reserve” (FCR), claiming it would investigate the missing funds. Victims were charged new fees for these false services—effectively falling prey to a second layer of fraud.
Later, when one of his associates was indicted in 2022, Mazzotta began obstructing justice: he destroyed evidence, manipulated documents, and falsified business records linked to Runway Beauty Inc.
Facing Justice
Mazzotta has now pleaded guilty to two charges—money laundering and conspiracy to obstruct justice. He faces up to 15 years in federal prison. A sentencing date has not yet been set.
More Scams Unfold
His case isn’t isolated. In June 2025, Dwayne Golden was sentenced to 97 months for orchestrating a $40 million crypto Ponzi scheme through platforms such as EmpowerCoin and ECoinPlus. Golden also tried to obstruct justice by destroying evidence and misleading federal investigators.
U.S. authorities have recently stepped up enforcement against crypto fraud. The Department of Justice is actively pursuing asset forfeiture in hopes of partially reimbursing victims.
#CryptoFraud , #MoneyLaundering , #CryptoCrime , #CryptoSecurity , #CryptoNews
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Chinese Man Sentenced for Laundering $19.5M via Crypto and Mixers
A former executive of a Chinese tech company has been sentenced to 14 years and 6 months in prison for embezzling company funds worth 140 million yuan ($19.5 million) and laundering them through cryptocurrency mixers and offshore exchanges.
The man, identified by the surname Feng, was responsible for approving incentive programs on a popular short video platform. Prosecutors say he conspired with external vendors to submit fake claims and redirected corporate funds to accounts under his control, which were then converted into Bitcoin and other digital assets.
🔹 Sophisticated Crypto-Based Money Laundering
The funds were funneled through eight foreign exchanges and concealed using coin mixing tools—services that anonymize blockchain transactions by pooling and redistributing digital assets. However, investigators managed to trace the transactions and recover over 90 BTC, worth approximately $11 million at current prices.
Authorities emphasized that despite increased transaction complexity, mixing tools do not guarantee complete anonymity. Using advanced forensic analysis, including pattern recognition, timestamp correlation, and statistical clustering, officials were able to partially reconstruct the flow of funds and link foreign crypto exchanges to domestic bank accounts.
🔹 Growing Risks in China’s Tech Industry
Feng was one of seven individuals convicted in the embezzlement scheme. The others received prison sentences ranging from three to over 14 years. The case was highlighted in a recent report from prosecutors in Beijing’s Haidian District, which analyzed 1,253 corruption cases in tech companies between 2020 and 2024.
The report points to a growing trend: a shift from traditional bribery to more sophisticated fraud involving cryptocurrency, data misuse, shell companies, and digital laundering. Sectors such as e-commerce and artificial intelligence were flagged as high-risk due to weak internal oversight.
Chinese law enforcement agencies are increasingly turning to blockchain analysis tools to investigate cryptocurrency-related crimes and enforce anti-money laundering laws. Firms like Salus Security, Beosin, and SlowMist are helping authorities track crypto movements and uncover digital fraud with growing precision.
#CryptoCrime , #MoneyLaundering , #china , #DigitalAssets , #CryptoSecurity
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
The man, identified by the surname Feng, was responsible for approving incentive programs on a popular short video platform. Prosecutors say he conspired with external vendors to submit fake claims and redirected corporate funds to accounts under his control, which were then converted into Bitcoin and other digital assets.
🔹 Sophisticated Crypto-Based Money Laundering
The funds were funneled through eight foreign exchanges and concealed using coin mixing tools—services that anonymize blockchain transactions by pooling and redistributing digital assets. However, investigators managed to trace the transactions and recover over 90 BTC, worth approximately $11 million at current prices.
Authorities emphasized that despite increased transaction complexity, mixing tools do not guarantee complete anonymity. Using advanced forensic analysis, including pattern recognition, timestamp correlation, and statistical clustering, officials were able to partially reconstruct the flow of funds and link foreign crypto exchanges to domestic bank accounts.
🔹 Growing Risks in China’s Tech Industry
Feng was one of seven individuals convicted in the embezzlement scheme. The others received prison sentences ranging from three to over 14 years. The case was highlighted in a recent report from prosecutors in Beijing’s Haidian District, which analyzed 1,253 corruption cases in tech companies between 2020 and 2024.
The report points to a growing trend: a shift from traditional bribery to more sophisticated fraud involving cryptocurrency, data misuse, shell companies, and digital laundering. Sectors such as e-commerce and artificial intelligence were flagged as high-risk due to weak internal oversight.
Chinese law enforcement agencies are increasingly turning to blockchain analysis tools to investigate cryptocurrency-related crimes and enforce anti-money laundering laws. Firms like Salus Security, Beosin, and SlowMist are helping authorities track crypto movements and uncover digital fraud with growing precision.
#CryptoCrime , #MoneyLaundering , #china , #DigitalAssets , #CryptoSecurity
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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
George Jones’ Widow Allegedly Scammed Out of $17 Million Worth of XRP
#CryptoCrime
Country music icon George Jones’ widow claims her ex-boyfriend stole millions in crypto and cash from a home safe. Most of the XRP has been recovered, but over $1 million remains missing.
Nancy Jones, the widow of country music legend George Jones, was allegedly scammed out of $17 million worth of XRP, according to a new report from Nashville media outlet WKRN.
George Jones Widow Files Theft Report Over Stolen Crypto
The July 25 report states that Jones’ 58-year-old ex-boyfriend, Kirk West, was taken into custody at Nashville International Airport on Thursday, July 24.
WKRN-reviewed documents allege that Jones filed a theft report on Wednesday, July 23, claiming West stole $400,000 in cash and approximately 5,534,307 XRP coins after breaking into a safe in her home.
Jones had kicked West out of their Tennessee residence on June 28 and called her granddaughter to help secure her valuables after she allegedly discovered he had cheated on her.
As of Tuesday afternoon, the stolen XRP was valued at over $17 million. However, Jones and her attorneys were able to recover most of the missing cryptocurrency—except for nearly 400,000 tokens, worth approximately $1.2 million.
West faces a Class A felony charge for theft of more than $250,000, and his bail has been set at $1 million.
Kirk West’s Fraudulent History Revealed
West previously pleaded guilty to bank fraud in 2026, a case in which his legal fees were paid by Jones.
The two met shortly after George Jones’ death in 2013, when West toured a home Nancy Jones was selling.
Reports say she later learned West was penniless and homeless before allowing him to move in with her in September 2013.
They began a romantic relationship the following month.
West is scheduled to appear in court on October 23 in connection with the alleged theft of Jones’ cash and cryptocurrency.
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Country music icon George Jones’ widow claims her ex-boyfriend stole millions in crypto and cash from a home safe. Most of the XRP has been recovered, but over $1 million remains missing.
Nancy Jones, the widow of country music legend George Jones, was allegedly scammed out of $17 million worth of XRP, according to a new report from Nashville media outlet WKRN.
George Jones Widow Files Theft Report Over Stolen Crypto
The July 25 report states that Jones’ 58-year-old ex-boyfriend, Kirk West, was taken into custody at Nashville International Airport on Thursday, July 24.
WKRN-reviewed documents allege that Jones filed a theft report on Wednesday, July 23, claiming West stole $400,000 in cash and approximately 5,534,307 XRP coins after breaking into a safe in her home.
Jones had kicked West out of their Tennessee residence on June 28 and called her granddaughter to help secure her valuables after she allegedly discovered he had cheated on her.
As of Tuesday afternoon, the stolen XRP was valued at over $17 million. However, Jones and her attorneys were able to recover most of the missing cryptocurrency—except for nearly 400,000 tokens, worth approximately $1.2 million.
West faces a Class A felony charge for theft of more than $250,000, and his bail has been set at $1 million.
Kirk West’s Fraudulent History Revealed
West previously pleaded guilty to bank fraud in 2026, a case in which his legal fees were paid by Jones.
The two met shortly after George Jones’ death in 2013, when West toured a home Nancy Jones was selling.
Reports say she later learned West was penniless and homeless before allowing him to move in with her in September 2013.
They began a romantic relationship the following month.
West is scheduled to appear in court on October 23 in connection with the alleged theft of Jones’ cash and cryptocurrency.
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🚨 $2.9M Crypto Heist in Germany — Thief Walks Free Thanks to Legal Loophole ⚖️ 🇩🇪💸
A man on trial in Germany has escaped criminal charges after allegedly stealing $2.9 million (€2.5 million) in cryptocurrency 💰 through an unauthorized transfer — all thanks to a series of unusual legal loopholes 🕳️⚖️.
🏛️ The Courtroom Drama
The case, heard by the Braunschweig Higher Regional Court (OLG), involved the alleged theft of 25 million unspecified tokens. According to court documents 📄, the defendant had helped the victim set up a crypto wallet and, during the process, reportedly gained access to the victim’s 24-word seed phrase 🔐.
He then allegedly transferred the tokens from the victim’s wallets into two other wallets beyond the victim’s control 🕵️♂️💼.
🧾 Legal Loophole: Crypto Isn’t a “Thing”?
Under Section 242 of the German Criminal Code (StGB), theft is defined as the “taking of another’s movable property.” But since cryptocurrencies like Bitcoin and Ethereum have no physical form 📉, German law doesn’t recognize them as “things.” That meant the traditional theft charge didn’t apply, according to German newspaper Heise.
💻 No Fraud, No Falsification
Other potential charges also fell flat:
■“Computer fraud” didn’t apply because the blockchain transaction couldn’t be clearly tied to unauthorized data manipulation. 💻🧩
■“Falsifying evidentiary data” was rejected due to “a lack of identifiability of the issuer.”
■Even “data alteration” didn’t stick — the court ruled that since the modification was executed on the blockchain, it was technically done by the network itself 🌐🔁.
👨⚖️ So… No Criminal Charges?
While the accused may have sidestepped criminal prosecution, he could still face civil action 🏛️— a likely outcome considering the $2.9 million involved.
🇩🇪📉 What Does This Mean for German Crypto Law?
A lawyer from WINHELLER, a German law firm specializing in crypto assets, told Decrypt that:
> “Legislative amendments are highly likely as the ruling creates a massive protection gap where millions in crypto can be stolen without criminal consequences.”
The legal expert predicts this will “force urgent reforms” 🔧 to expand theft laws to include digital assets and create “specific crypto-related criminal provisions” 🧾⚠️. #CryptoCrime #CryptoScamSurge
🏛️ The Courtroom Drama
The case, heard by the Braunschweig Higher Regional Court (OLG), involved the alleged theft of 25 million unspecified tokens. According to court documents 📄, the defendant had helped the victim set up a crypto wallet and, during the process, reportedly gained access to the victim’s 24-word seed phrase 🔐.
He then allegedly transferred the tokens from the victim’s wallets into two other wallets beyond the victim’s control 🕵️♂️💼.
🧾 Legal Loophole: Crypto Isn’t a “Thing”?
Under Section 242 of the German Criminal Code (StGB), theft is defined as the “taking of another’s movable property.” But since cryptocurrencies like Bitcoin and Ethereum have no physical form 📉, German law doesn’t recognize them as “things.” That meant the traditional theft charge didn’t apply, according to German newspaper Heise.
💻 No Fraud, No Falsification
Other potential charges also fell flat:
■“Computer fraud” didn’t apply because the blockchain transaction couldn’t be clearly tied to unauthorized data manipulation. 💻🧩
■“Falsifying evidentiary data” was rejected due to “a lack of identifiability of the issuer.”
■Even “data alteration” didn’t stick — the court ruled that since the modification was executed on the blockchain, it was technically done by the network itself 🌐🔁.
👨⚖️ So… No Criminal Charges?
While the accused may have sidestepped criminal prosecution, he could still face civil action 🏛️— a likely outcome considering the $2.9 million involved.
🇩🇪📉 What Does This Mean for German Crypto Law?
A lawyer from WINHELLER, a German law firm specializing in crypto assets, told Decrypt that:
> “Legislative amendments are highly likely as the ruling creates a massive protection gap where millions in crypto can be stolen without criminal consequences.”
The legal expert predicts this will “force urgent reforms” 🔧 to expand theft laws to include digital assets and create “specific crypto-related criminal provisions” 🧾⚠️. #CryptoCrime #CryptoScamSurge
Country Legend’s Widow Allegedly Robbed of $17M in XRP by Ex-Lover
In a story that reads like a Southern drama, Nancy Jones—the widow of iconic country music star George Jones—has allegedly been robbed of more than $17 million worth of cryptocurrency. The accused? Her former partner Kirk West, who was arrested last Friday at Nashville International Airport.
🔹 From Comfort to Crime: A Relationship Gone Wrong
Nancy met Kirk West shortly after her famous husband passed away in 2013. Initially expressing interest in buying her house, West soon became romantically involved with the grieving widow. Over time, he moved in and, according to Nancy, she funded his entire lifestyle—from luxury vacations to expensive cars.
She later discovered that West was not the wealthy and successful man he claimed to be, but someone with no money at all. In 2016, he was even convicted of bank fraud and placed under house arrest—at her residence.
🔹 Crypto “Expert” Emerges
During his house arrest, West allegedly reinvented himself as a crypto guru. He persuaded Nancy to invest in various cryptocurrencies, including XRP, Ethereum, Dogecoin, Shiba Inu, and Stellar. Back then, XRP was worth just a fraction of a dollar—today, it represents a multimillion-dollar portfolio.
🔹 Safe Cracked, Crypto Vanished
Investigators say West recently broke into two safes in Nancy’s home and stole $400,000 in cash along with a Ledger wallet containing over 5.5 million XRP tokens. Just two days later, Jones kicked him out of the house—but the damage had already been done.
West was later arrested at the Nashville airport and charged with theft. According to Nancy’s legal team, most of the stolen XRP was successfully recovered, although approximately 483,000 tokens remain unaccounted for.
🔹 From Tiny Investment to Massive Theft
When West and Jones first invested in XRP in 2016, the stash was worth about $35,000. But in 2025, XRP hit a new all-time high of $3.65 per token, bringing the total value of the stolen crypto to over $17.4 million.
#xrp , #Cryptoscam , #CryptoCrime , #CryptoFraud , #CryptoCommunity
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
🔹 From Comfort to Crime: A Relationship Gone Wrong
Nancy met Kirk West shortly after her famous husband passed away in 2013. Initially expressing interest in buying her house, West soon became romantically involved with the grieving widow. Over time, he moved in and, according to Nancy, she funded his entire lifestyle—from luxury vacations to expensive cars.
She later discovered that West was not the wealthy and successful man he claimed to be, but someone with no money at all. In 2016, he was even convicted of bank fraud and placed under house arrest—at her residence.
🔹 Crypto “Expert” Emerges
During his house arrest, West allegedly reinvented himself as a crypto guru. He persuaded Nancy to invest in various cryptocurrencies, including XRP, Ethereum, Dogecoin, Shiba Inu, and Stellar. Back then, XRP was worth just a fraction of a dollar—today, it represents a multimillion-dollar portfolio.
🔹 Safe Cracked, Crypto Vanished
Investigators say West recently broke into two safes in Nancy’s home and stole $400,000 in cash along with a Ledger wallet containing over 5.5 million XRP tokens. Just two days later, Jones kicked him out of the house—but the damage had already been done.
West was later arrested at the Nashville airport and charged with theft. According to Nancy’s legal team, most of the stolen XRP was successfully recovered, although approximately 483,000 tokens remain unaccounted for.
🔹 From Tiny Investment to Massive Theft
When West and Jones first invested in XRP in 2016, the stash was worth about $35,000. But in 2025, XRP hit a new all-time high of $3.65 per token, bringing the total value of the stolen crypto to over $17.4 million.
#xrp , #Cryptoscam , #CryptoCrime , #CryptoFraud , #CryptoCommunity
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Chainalysis: Crypto Crime May Hit $4B+ in 2025
Chainalysis' mid-year review shows over $2.17B stolen from centralized platforms and wallets by June 2025. This puts the industry on track to exceed $4B in thefts by year’s end.
Notably, ~$8.5B in stolen funds remain unlaundered—sitting idle in blacklisted wallets, likely waiting for low-liquidity bridges or decentralized mixing. A disturbing new trend: wrench attacks, where physical coercion is used to access private keys, rose 240% YoY, mostly in LATAM and Eastern Europe.
Governments are pushing for mandatory reporting of custodial wallet thefts, while new startups are offering “wallet insurance” with varying levels of coverage.
Reminder: Consider multisig, biometric key backups, and geo-locking for large personal wallets.
Cashtags: $BTC , $ETH
Hashtags: #CryptoCrime #Chainalysis #PersonalWalletRisk
Chainalysis' mid-year review shows over $2.17B stolen from centralized platforms and wallets by June 2025. This puts the industry on track to exceed $4B in thefts by year’s end.
Notably, ~$8.5B in stolen funds remain unlaundered—sitting idle in blacklisted wallets, likely waiting for low-liquidity bridges or decentralized mixing. A disturbing new trend: wrench attacks, where physical coercion is used to access private keys, rose 240% YoY, mostly in LATAM and Eastern Europe.
Governments are pushing for mandatory reporting of custodial wallet thefts, while new startups are offering “wallet insurance” with varying levels of coverage.
Reminder: Consider multisig, biometric key backups, and geo-locking for large personal wallets.
Cashtags: $BTC , $ETH
Hashtags: #CryptoCrime #Chainalysis #PersonalWalletRisk
Ripple CTO Dismisses Forbes Defense of Sam Bankman-Fried as “Nonsense”
David Schwartz has rejected Forbes’s argument defending SBF’s FTX conviction.
The Ripple executive states that good deeds cannot erase proven fraud charges.
GENIUS Act passage has now sparked debate over SBF’s regulatory advocacy efforts.
Ripple Chief Technology Officer David Schwartz has criticized a Forbes article that questioned Sam Bankman-Fried’s criminal conviction, calling the defense “nonsense.” The article suggested the former FTX CEO received unfair treatment given his efforts to establish cryptocurrency regulations.
The article discussed SBF’s Washington lobbying activities aimed at creating stable regulatory frameworks for digital assets. The piece claimed that his time in the capital sought necessary regulatory approval for the positive development of crypto, rather than personal gain.
💥Schwartz Rejects Fraud Justification Arguments
Schwartz directly addressed the Forbes article, emphasizing that any positive impact from SBF and FTX doesn’t erase the clear evidence of fraud. The Ripple executive stressed that criminal actions remain unacceptable, no matter what else someone has accomplished.
Coin Center’s Neeraj Agrawal shared the Forbes article on Twitter and questioned the article’s logical premise. The tweet caused controversy from the cryptocurrency community about standards for industry leader accountability.
The Forbes article also identified FTT tokens as vehicles for sharing profits and not as conventional currency. This translates to customer funds amounting to speculation on SBF’s crypto proficiency. Further, this interpretation sought to redefine abuse of customer funds as a valid investment strategy.
Schwartz agrees with the jury verdict that found SBF guilty of using money from one business to cover losses in another. The Ripple CTO asserted that established legal standards apply even in the face of innovation or regulatory lobbying.
💥Regulatory Advocacy Cannot Override Criminal Conduct
The Forbes piece referenced the recent passage of crypto-friendly legislation like the GENIUS Act as justification for SBF’s regulatory approach. The argument here was that his Washington lobbying was visionary in securing crypto’s institutional future.
But Schwartz’s reply suggests that well-regarded work in regulation does not exempt one from accusations of fraud. The executive’s position maintains attempts at advocacy separate from criminal misappropriation of clients’ money.
Forbes offered remarks regarding potential presidential pardons, conjecturing SBF’s vision made his actions acceptable at the expense of legal consequences. On this interpretation, market adjustments are the predominant source of SBF’s legal difficulties and not willful malfeasance.
Schwartz’s dismissal highlights the prevailing industry sentiment that distinguishes legitimate innovation from fraudulent practices. The Ripple executive’s position emphasizes that crypto advancement requires both ethical conduct and regulatory engagement.
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#CryptoCrime $XRP
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The Ripple executive states that good deeds cannot erase proven fraud charges.
GENIUS Act passage has now sparked debate over SBF’s regulatory advocacy efforts.
Ripple Chief Technology Officer David Schwartz has criticized a Forbes article that questioned Sam Bankman-Fried’s criminal conviction, calling the defense “nonsense.” The article suggested the former FTX CEO received unfair treatment given his efforts to establish cryptocurrency regulations.
The article discussed SBF’s Washington lobbying activities aimed at creating stable regulatory frameworks for digital assets. The piece claimed that his time in the capital sought necessary regulatory approval for the positive development of crypto, rather than personal gain.
💥Schwartz Rejects Fraud Justification Arguments
Schwartz directly addressed the Forbes article, emphasizing that any positive impact from SBF and FTX doesn’t erase the clear evidence of fraud. The Ripple executive stressed that criminal actions remain unacceptable, no matter what else someone has accomplished.
Coin Center’s Neeraj Agrawal shared the Forbes article on Twitter and questioned the article’s logical premise. The tweet caused controversy from the cryptocurrency community about standards for industry leader accountability.
The Forbes article also identified FTT tokens as vehicles for sharing profits and not as conventional currency. This translates to customer funds amounting to speculation on SBF’s crypto proficiency. Further, this interpretation sought to redefine abuse of customer funds as a valid investment strategy.
Schwartz agrees with the jury verdict that found SBF guilty of using money from one business to cover losses in another. The Ripple CTO asserted that established legal standards apply even in the face of innovation or regulatory lobbying.
💥Regulatory Advocacy Cannot Override Criminal Conduct
The Forbes piece referenced the recent passage of crypto-friendly legislation like the GENIUS Act as justification for SBF’s regulatory approach. The argument here was that his Washington lobbying was visionary in securing crypto’s institutional future.
But Schwartz’s reply suggests that well-regarded work in regulation does not exempt one from accusations of fraud. The executive’s position maintains attempts at advocacy separate from criminal misappropriation of clients’ money.
Forbes offered remarks regarding potential presidential pardons, conjecturing SBF’s vision made his actions acceptable at the expense of legal consequences. On this interpretation, market adjustments are the predominant source of SBF’s legal difficulties and not willful malfeasance.
Schwartz’s dismissal highlights the prevailing industry sentiment that distinguishes legitimate innovation from fraudulent practices. The Ripple executive’s position emphasizes that crypto advancement requires both ethical conduct and regulatory engagement.
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#CryptoCrime $XRP
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Internal Heist in China: Employees Stole $20 Million and Laundered It Through Bitcoin
Beijing is reeling from one of the most sophisticated corruption scandals in recent years. Eight individuals have just been sentenced for embezzling over 140 million yuan (approximately $20 million) from a tech company operating a popular short-video platform. The stolen funds were laundered using cryptocurrencies—specifically Bitcoin—and now, the perpetrators are heading to prison.
🔓 It All Started Inside the Company: Bonus System Manipulation
The entire scheme originated within the company, where an employee named Feng oversaw the approval of service providers and bonus payouts. With access to sensitive systems and internal policies, he exploited this power to create loopholes in company guidelines and shared them with two external collaborators—Tang and Yang.
Together, they submitted fake bonus claims that appeared legitimate. Real workers received no rewards; instead, the money was funneled to fake companies that existed only on paper.
💸 Laundering Through Bitcoin and International Exchanges
Once the funds were drained from the company, phase two began. The group set up a network of bank accounts and shell companies. They shuffled the money through these entities before converting it to cryptocurrency.
They used eight different international crypto exchanges and employed an advanced method called a “coin mixer”—an anonymizing tool that scrambles crypto transactions, making the origins of the funds nearly impossible to trace. This “digital washing machine” operated across borders, with some funds eventually looping back to accounts secretly controlled by the perpetrators themselves.
📊 Digital Forensics Played a Key Role
The case was cracked by Li Tao, a prosecutor specializing in tech crime in Beijing’s Haidian District. Investigators used advanced data analytics and blockchain forensics to trace the transactions, link fake documents, and follow the money trail.
“We recovered over 90 Bitcoins,” Li stated. While this accounts for only a portion of the stolen funds, it confirmed the gang’s laundering techniques and the path of the money.
⚖️ Harsh Sentences: 14 Years in Prison for Digital Embezzlement
A Beijing court described the case as a “model example of internal corporate corruption with a crypto twist.” Feng, the mastermind, received the longest sentence—14 years and 6 months. The rest of the group received sentences ranging from 3 to 14 years. All were found guilty of occupational embezzlement and manipulation of corporate assets.
#CryptoCrime , #MoneyLaundering , #bitcoin , #CryptoFraud , #CryptoSecurity
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
🔓 It All Started Inside the Company: Bonus System Manipulation
The entire scheme originated within the company, where an employee named Feng oversaw the approval of service providers and bonus payouts. With access to sensitive systems and internal policies, he exploited this power to create loopholes in company guidelines and shared them with two external collaborators—Tang and Yang.
Together, they submitted fake bonus claims that appeared legitimate. Real workers received no rewards; instead, the money was funneled to fake companies that existed only on paper.
💸 Laundering Through Bitcoin and International Exchanges
Once the funds were drained from the company, phase two began. The group set up a network of bank accounts and shell companies. They shuffled the money through these entities before converting it to cryptocurrency.
They used eight different international crypto exchanges and employed an advanced method called a “coin mixer”—an anonymizing tool that scrambles crypto transactions, making the origins of the funds nearly impossible to trace. This “digital washing machine” operated across borders, with some funds eventually looping back to accounts secretly controlled by the perpetrators themselves.
📊 Digital Forensics Played a Key Role
The case was cracked by Li Tao, a prosecutor specializing in tech crime in Beijing’s Haidian District. Investigators used advanced data analytics and blockchain forensics to trace the transactions, link fake documents, and follow the money trail.
“We recovered over 90 Bitcoins,” Li stated. While this accounts for only a portion of the stolen funds, it confirmed the gang’s laundering techniques and the path of the money.
⚖️ Harsh Sentences: 14 Years in Prison for Digital Embezzlement
A Beijing court described the case as a “model example of internal corporate corruption with a crypto twist.” Feng, the mastermind, received the longest sentence—14 years and 6 months. The rest of the group received sentences ranging from 3 to 14 years. All were found guilty of occupational embezzlement and manipulation of corporate assets.
#CryptoCrime , #MoneyLaundering , #bitcoin , #CryptoFraud , #CryptoSecurity
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Ex-Girlfriend of LA ‘Godfather’ to Plead Guilty in $2.6M Tax Fraud Bombshell
In a stunning turn of events, Iris Ramaya Au, the ex-girlfriend of notorious cryptocurrency fraudster Adam Iza—self-styled as “The Godfather”—has agreed to plead guilty to federal tax charges tied to a staggering $2.6 million fraud case. The U.S. Department of Justice dropped the bombshell on March 5, 2025, revealing Au’s role in a sprawling criminal operation that’s rocked the crypto world. At 35, Au now faces up to three years behind bars for failing to report millions in ill-gotten gains linked to Iza’s schemes.
Court documents paint a wild picture: from 2020 to 2023, Au allegedly set up shell companies and bank accounts at Iza’s direction, funneling dirty money like a seasoned pro. The cash—over $2.6 million—came from Iza’s fraudulent ventures, including a jaw-dropping $37 million scam involving manipulated Facebook ad accounts. While Iza, 24, lived large—splashing $10 million on luxury getaways and scooping up $16 million in crypto—Au played her part, hiding the loot from the IRS. Her guilty plea to filing a false tax return marks a dramatic fall from grace.
Iza, arrested in September 2024, already pleaded guilty in January to conspiracy, wire fraud, and tax evasion. He’s staring down a potential 35-year sentence, a brutal end to his reign as a crypto kingpin. Together, the duo’s exploits read like a Hollywood script—extortion, fraud, and a lavish lifestyle funded by deceit. Prosecutors say Iza even used his Zort trading platform as a front for large-scale cons.
Au’s plea deal is set to be formalized soon in a Los Angeles federal court, leaving the crypto community buzzing. How deep does this rabbit hole go? For now, the “Godfather’s” ex is flipping the script, trading her freedom for a shot at leniency. Stay tuned—this saga’s far from over.
#CryptoCrime #TaxFraud #GodfatherScandal #JusticeServed
In a stunning turn of events, Iris Ramaya Au, the ex-girlfriend of notorious cryptocurrency fraudster Adam Iza—self-styled as “The Godfather”—has agreed to plead guilty to federal tax charges tied to a staggering $2.6 million fraud case. The U.S. Department of Justice dropped the bombshell on March 5, 2025, revealing Au’s role in a sprawling criminal operation that’s rocked the crypto world. At 35, Au now faces up to three years behind bars for failing to report millions in ill-gotten gains linked to Iza’s schemes.
Court documents paint a wild picture: from 2020 to 2023, Au allegedly set up shell companies and bank accounts at Iza’s direction, funneling dirty money like a seasoned pro. The cash—over $2.6 million—came from Iza’s fraudulent ventures, including a jaw-dropping $37 million scam involving manipulated Facebook ad accounts. While Iza, 24, lived large—splashing $10 million on luxury getaways and scooping up $16 million in crypto—Au played her part, hiding the loot from the IRS. Her guilty plea to filing a false tax return marks a dramatic fall from grace.
Iza, arrested in September 2024, already pleaded guilty in January to conspiracy, wire fraud, and tax evasion. He’s staring down a potential 35-year sentence, a brutal end to his reign as a crypto kingpin. Together, the duo’s exploits read like a Hollywood script—extortion, fraud, and a lavish lifestyle funded by deceit. Prosecutors say Iza even used his Zort trading platform as a front for large-scale cons.
Au’s plea deal is set to be formalized soon in a Los Angeles federal court, leaving the crypto community buzzing. How deep does this rabbit hole go? For now, the “Godfather’s” ex is flipping the script, trading her freedom for a shot at leniency. Stay tuned—this saga’s far from over.
#CryptoCrime #TaxFraud #GodfatherScandal #JusticeServed
Russian Citizen Assaulted and Robbed in Thailand Over Cryptocurrency Dispute
Incident in Phuket: Crypto Debt Leads to Violent Robbery
Thai police have launched an investigation into two Russian nationals accused of assaulting and robbing their compatriot over a cryptocurrency debt. The incident occurred at a hotel in Karon, Phuket.
According to the local newspaper Khaosod, a 31-year-old man was attacked over a $120,000 debt linked to previous cryptocurrency transactions in Russia. The attackers, who were known to the victim, forced him to attempt unlocking his crypto wallet. When he refused, violence ensued.
Assault and Suspects’ Escape
One of the suspects, identified as Andrei, allegedly threatened to kill the victim if the debt was not paid. The victim was repeatedly punched, kicked, and eventually lost consciousness after being struck on the head. The attackers then stole $20,000 in cash and fled, leaving the victim tied up in the bathroom.
Investigators revealed that one suspect remained in Thailand, while the other, Dmitri, fled to Dubai. Arrest warrants have been issued, and Thai authorities are collaborating with immigration and police agencies to apprehend the suspects.
Cryptocurrencies as Targets of Violent Crime
Rising Value of Cryptocurrencies Attracts Criminals
The Phuket incident is part of a growing trend where cryptocurrencies play a role in severe criminal activities. The year 2024 saw numerous violent incidents linked to digital assets, ranging from kidnappings to extortion.
In July, a 29-year-old tourist in Kyiv was kidnapped and murdered as criminals attempted to seize his 3 bitcoins. Authorities described the event as a calculated plan that ended with the victim's death after the forced transfer of cryptocurrency failed.
Case in Costa Rica: Armed Robbery of Bitcoins
A similar case occurred in August on a beach in Costa Rica, where 11 Israeli tourists were robbed of a significant amount of bitcoins. The attackers, disguised as police officers, used firearms during the assault, raising concerns about the involvement of organized crime groups with police training.
Cryptocurrencies: Valuable Targets That Attract Danger
As cryptocurrencies grow in popularity, incidents of violence and crime associated with these digital assets are on the rise. This trend underscores the need for enhanced security measures and better protection for investors on a global scale.
#CryptoCrime , #Bitcoin❗ , #CryptoSafety , #cybercrime , #CryptoScamAlert
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Thai police have launched an investigation into two Russian nationals accused of assaulting and robbing their compatriot over a cryptocurrency debt. The incident occurred at a hotel in Karon, Phuket.
According to the local newspaper Khaosod, a 31-year-old man was attacked over a $120,000 debt linked to previous cryptocurrency transactions in Russia. The attackers, who were known to the victim, forced him to attempt unlocking his crypto wallet. When he refused, violence ensued.
Assault and Suspects’ Escape
One of the suspects, identified as Andrei, allegedly threatened to kill the victim if the debt was not paid. The victim was repeatedly punched, kicked, and eventually lost consciousness after being struck on the head. The attackers then stole $20,000 in cash and fled, leaving the victim tied up in the bathroom.
Investigators revealed that one suspect remained in Thailand, while the other, Dmitri, fled to Dubai. Arrest warrants have been issued, and Thai authorities are collaborating with immigration and police agencies to apprehend the suspects.
Cryptocurrencies as Targets of Violent Crime
Rising Value of Cryptocurrencies Attracts Criminals
The Phuket incident is part of a growing trend where cryptocurrencies play a role in severe criminal activities. The year 2024 saw numerous violent incidents linked to digital assets, ranging from kidnappings to extortion.
In July, a 29-year-old tourist in Kyiv was kidnapped and murdered as criminals attempted to seize his 3 bitcoins. Authorities described the event as a calculated plan that ended with the victim's death after the forced transfer of cryptocurrency failed.
Case in Costa Rica: Armed Robbery of Bitcoins
A similar case occurred in August on a beach in Costa Rica, where 11 Israeli tourists were robbed of a significant amount of bitcoins. The attackers, disguised as police officers, used firearms during the assault, raising concerns about the involvement of organized crime groups with police training.
Cryptocurrencies: Valuable Targets That Attract Danger
As cryptocurrencies grow in popularity, incidents of violence and crime associated with these digital assets are on the rise. This trend underscores the need for enhanced security measures and better protection for investors on a global scale.
#CryptoCrime , #Bitcoin❗ , #CryptoSafety , #cybercrime , #CryptoScamAlert
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
🚨 Crypto Chaos Alert! 🚨 The founder of AML Bitcoin has been convicted of fraud and money laundering after swindling investors out of millions! 💸💔
He lured people in with big promises, including a fake deal with the Panama Canal Authority 🌊🚢 (yes, you read that right!). But instead of delivering, he blew over $2 million on luxury homes 🏡, fancy cars 🚗, and a lavish lifestyle. 🤑
The FBI 🕵️♂️ and IRS 💼 didn’t hold back, calling his scheme “outrageous” and “deceptive.” Now, he’s staring down the barrel of up to 30 YEARS in prison! ⛓️⏳
What do you think? Should he rot behind bars or is there another way to make things right? 🤔 Let’s discuss! 👇
#CryptoScam #FraudAlert #BitcoinNews #CryptoCrime #JusticeServed 💡🔒 $BTC
$ETH
$XRP
He lured people in with big promises, including a fake deal with the Panama Canal Authority 🌊🚢 (yes, you read that right!). But instead of delivering, he blew over $2 million on luxury homes 🏡, fancy cars 🚗, and a lavish lifestyle. 🤑
The FBI 🕵️♂️ and IRS 💼 didn’t hold back, calling his scheme “outrageous” and “deceptive.” Now, he’s staring down the barrel of up to 30 YEARS in prison! ⛓️⏳
What do you think? Should he rot behind bars or is there another way to make things right? 🤔 Let’s discuss! 👇
#CryptoScam #FraudAlert #BitcoinNews #CryptoCrime #JusticeServed 💡🔒 $BTC
$ETH
$XRP
Illicit crypto transactions dropped to 0.14% of the total in 2024!Binance N1 against Crypto Crime 🔥
In the 2025 Crypto Crime Report released by Chainalysis, the linked value of criminal Bitcoin addresses in 2024 dropped to an all-time low at just $40.9 billion, a dramatic reduction from the figures in the previous year. However, in all the general pessimism, there was some light at the end of the tunnel: the rate at which cryptocurrency activity could be linked to crime dropped to 0.14%, a significant reduction from 2023's 0.61%.
Binance at the forefront against crypto crime
While it could be the case that illegitimate inflows are still possible, they also point to an interesting trend: despite the meteoric increase in users, inflows, and market size, crime did not increase in proportion.
This represents a significant improvement in security in the world of cryptocurrency, indicative of the collective effort by the whole cryptocurrency community—users, exchanges, law enforcement, and influencers—working to build a world based on security, a future filled with promise and progress.
Binance, the leading exchange in the market, is at the forefront of this incredible progress. All effort resonates with the focus put into security and compliance, the same building block in whose foundation the company runs. Binance sets the benchmark in protecting users, developing tighter cooperation with law enforcement around the globe, and tightening mechanisms to control risks.
Investing for a safer future
At Binance, the doctrine of judicious expansion has long dominated, and in 2024, this was dramatically evident in the disbursement of hundreds of millions of dollars, beating the record-breaking expenditure from the previous year. The result? A team of 650 compliance professionals and a compliant infrastructure were in place to obtain 21 global compliance approvals, the most in the exchange's market.
These investments did so much more than simply make internal processes smarter; they created a path to a safer cyber monetary world. Binance's efforts, from improved security protocol on the site to forethoughtful notifications about possible threats, established the company as the market's model of trust.
Proactive prevention: the Risk Sniper channel
In 2024, Binance possessed tight control mechanisms to demonstrate how to be a good model to safeguard users from fraud and scams. A major component to this end was initiating the Binance Square of the Risk Sniper channel. The channel provided real-time notifications by monitoring high-risk addresses and links, making users feel secure and confident about the experience in cryptocurrency.
Know Your Scam
Beyond simply posting warnings, the channel also acted as an educational tool, spreading content in the form of security blogs and Know Your Scam events. Through the informative articles, the users were empowered to recognize and report the most current emerging scams, gaining the necessary tools to remain up to date.
Throughout their efforts, the Risk Team exhibited an unparalleled rate of efficacy, removing and disqualifying more than 1,000 threats from different posts. This great feat demonstrates Binance's great devotion to protecting the community from the dangers of harmful fraud. It also serves to demonstrate the extremely significant necessity to maintain good first defense—a principle in high regard by Binance in attempting to build a world economy to be safer and more secure.
Risk management
Binance’s comprehensive risk management frameworks underpinned the security and protection of users. More than 50 models built in 2024 to recognize scam activity, the majority in our P2P network, helped to bolster this. The models received frequent updates through 14 major iterations, to maintain the pace with the constantly updating strategies employed by the scammers.
Through the processing of enormous amounts of real-time data, the algorithms based on AI provided predictive recommendations and notified us about possible threats in advance, before any fake money movements. Behavioral profiling also helped to distinguish between normal and abnormal users' behaviors and support intervention in a more precise manner.
Significant impact
The impact was significant. Furthermore, this secured restitution to the scam's victims to the tune of $9.1 million, and blocked 47,000 phishing addresses. Thanks to real-time monitoring available to us, Binance could act in milliseconds, showcasing the efficacy of our AI-based risk-management strategy.
The security program effectively protected 2.8 million people globally from losing over $4.2 billion through the use of all-around strategies, such as anti-scam campaigns and consumer education.
Proactive Recovery
Binance's commitment to security went far beyond the simple act of prevention; it went the extra mile to support users in recovering funds misplaced, lost, or stolen. In 2024, through the tireless work of specialized teams, they were able to recover an astonishing total of $88 million in cryptocurrency associated with hacks, exploits, and theft, the vast majority external to Binance. So long as the tools are available to us, we will stop at nothing in the return of funds to our loyal users.
#Binance #CryptoCrime
Binance at the forefront against crypto crime
While it could be the case that illegitimate inflows are still possible, they also point to an interesting trend: despite the meteoric increase in users, inflows, and market size, crime did not increase in proportion.
This represents a significant improvement in security in the world of cryptocurrency, indicative of the collective effort by the whole cryptocurrency community—users, exchanges, law enforcement, and influencers—working to build a world based on security, a future filled with promise and progress.
Binance, the leading exchange in the market, is at the forefront of this incredible progress. All effort resonates with the focus put into security and compliance, the same building block in whose foundation the company runs. Binance sets the benchmark in protecting users, developing tighter cooperation with law enforcement around the globe, and tightening mechanisms to control risks.
Investing for a safer future
At Binance, the doctrine of judicious expansion has long dominated, and in 2024, this was dramatically evident in the disbursement of hundreds of millions of dollars, beating the record-breaking expenditure from the previous year. The result? A team of 650 compliance professionals and a compliant infrastructure were in place to obtain 21 global compliance approvals, the most in the exchange's market.
These investments did so much more than simply make internal processes smarter; they created a path to a safer cyber monetary world. Binance's efforts, from improved security protocol on the site to forethoughtful notifications about possible threats, established the company as the market's model of trust.
Proactive prevention: the Risk Sniper channel
In 2024, Binance possessed tight control mechanisms to demonstrate how to be a good model to safeguard users from fraud and scams. A major component to this end was initiating the Binance Square of the Risk Sniper channel. The channel provided real-time notifications by monitoring high-risk addresses and links, making users feel secure and confident about the experience in cryptocurrency.
Know Your Scam
Beyond simply posting warnings, the channel also acted as an educational tool, spreading content in the form of security blogs and Know Your Scam events. Through the informative articles, the users were empowered to recognize and report the most current emerging scams, gaining the necessary tools to remain up to date.
Throughout their efforts, the Risk Team exhibited an unparalleled rate of efficacy, removing and disqualifying more than 1,000 threats from different posts. This great feat demonstrates Binance's great devotion to protecting the community from the dangers of harmful fraud. It also serves to demonstrate the extremely significant necessity to maintain good first defense—a principle in high regard by Binance in attempting to build a world economy to be safer and more secure.
Risk management
Binance’s comprehensive risk management frameworks underpinned the security and protection of users. More than 50 models built in 2024 to recognize scam activity, the majority in our P2P network, helped to bolster this. The models received frequent updates through 14 major iterations, to maintain the pace with the constantly updating strategies employed by the scammers.
Through the processing of enormous amounts of real-time data, the algorithms based on AI provided predictive recommendations and notified us about possible threats in advance, before any fake money movements. Behavioral profiling also helped to distinguish between normal and abnormal users' behaviors and support intervention in a more precise manner.
Significant impact
The impact was significant. Furthermore, this secured restitution to the scam's victims to the tune of $9.1 million, and blocked 47,000 phishing addresses. Thanks to real-time monitoring available to us, Binance could act in milliseconds, showcasing the efficacy of our AI-based risk-management strategy.
The security program effectively protected 2.8 million people globally from losing over $4.2 billion through the use of all-around strategies, such as anti-scam campaigns and consumer education.
Proactive Recovery
Binance's commitment to security went far beyond the simple act of prevention; it went the extra mile to support users in recovering funds misplaced, lost, or stolen. In 2024, through the tireless work of specialized teams, they were able to recover an astonishing total of $88 million in cryptocurrency associated with hacks, exploits, and theft, the vast majority external to Binance. So long as the tools are available to us, we will stop at nothing in the return of funds to our loyal users.
#Binance #CryptoCrime
💥At just 15, he stole $24 million in crypto. He spent it on escorts, nightclubs, and a $100K Rolex. Then the FBI came knocking.
This is the wildest SIM swap scam you’ve never heard of.
Crypto investor Michael Turpin had just left a conference when a group of teens—led by 15-year-old Ellis Pinsky—hijacked his phone number. They bribed telecom workers, and Ellis used scripts on a Skype call to scrape Turpin’s digital life—emails, cloud files, everything—hunting for wallet keys.
Then came the big prize:
$900M in $ETH, but it was locked. So they kept digging, and found $24M in BTC. Within hours, Turpin checked his accounts—his biggest wallet was safe, but $24M was gone.
It became the largest individual SIM swap ever recorded.
Suddenly, Ellis was rich. He bought a Rolex and hid it under his bed. But the chaos started quickly. One teammate ran off with $1.5M. Another talked about hiring a hitman.
Ellis’s story began early—growing up in a small NYC apartment, getting his first Xbox at 13, joining hacker forums, and learning SQL injection. By 15, he was into SIM swapping, gaining power by convincing telecom reps to transfer someone’s number to his SIM, giving him access to texts, 2FA codes, and wallets.
But his ex-partner, Truglia, couldn't keep quiet, tweeting things like, “Stole $24M. Still can’t keep a friend.” His careless mistakes led to a fast downfall—he used his real name on Coinbase, and the FBI swooped in. Truglia went to prison.
Ellis, underage, returned most of the money and faced no charges. But Turpin sued him for $22M. Then masked gunmen broke into Ellis’s house.
Today, Ellis studies philosophy and computer science at NYU, aiming to build startups, repay his debt, and leave the chaos behind.
By 15, he had:
– 562 BTC
– Telecom insiders
– A lawsuit
– A hit on his life
And no idea what would come next.
#SIMSwapScam #CryptoCrime #EthereumFuture #BinanceAlphaAlert
This is the wildest SIM swap scam you’ve never heard of.
Crypto investor Michael Turpin had just left a conference when a group of teens—led by 15-year-old Ellis Pinsky—hijacked his phone number. They bribed telecom workers, and Ellis used scripts on a Skype call to scrape Turpin’s digital life—emails, cloud files, everything—hunting for wallet keys.
Then came the big prize:
$900M in $ETH, but it was locked. So they kept digging, and found $24M in BTC. Within hours, Turpin checked his accounts—his biggest wallet was safe, but $24M was gone.
It became the largest individual SIM swap ever recorded.
Suddenly, Ellis was rich. He bought a Rolex and hid it under his bed. But the chaos started quickly. One teammate ran off with $1.5M. Another talked about hiring a hitman.
Ellis’s story began early—growing up in a small NYC apartment, getting his first Xbox at 13, joining hacker forums, and learning SQL injection. By 15, he was into SIM swapping, gaining power by convincing telecom reps to transfer someone’s number to his SIM, giving him access to texts, 2FA codes, and wallets.
But his ex-partner, Truglia, couldn't keep quiet, tweeting things like, “Stole $24M. Still can’t keep a friend.” His careless mistakes led to a fast downfall—he used his real name on Coinbase, and the FBI swooped in. Truglia went to prison.
Ellis, underage, returned most of the money and faced no charges. But Turpin sued him for $22M. Then masked gunmen broke into Ellis’s house.
Today, Ellis studies philosophy and computer science at NYU, aiming to build startups, repay his debt, and leave the chaos behind.
By 15, he had:
– 562 BTC
– Telecom insiders
– A lawsuit
– A hit on his life
And no idea what would come next.
#SIMSwapScam #CryptoCrime #EthereumFuture #BinanceAlphaAlert
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