A Florida man has been convicted in the United States for orchestrating an international scheme that involved violent home invasions aimed at stealing cryptocurrency. The operation targeted victims throughout the country, who were kidnapped and assaulted to gain access to their cryptocurrency accounts. The defendant is facing a minimum sentence of seven years and a […]
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South African Police Nab Alleged Mastermind of Metaverse Ponzi Scheme
Neil Leon De Waal, a key figure in the GS Partners metaverse fraud case, was reportedly arrested by South African law enforcement in late May. He was subsequently released on bail on June 3. Authorities began investigating De Waal following a complaint from one of his victims. The complainant, who lives in Benoni, had to […]
Bitcoin News
Report Shows No Evidence of Special Treatment for BTC Ponzi Scheme Mastermind in Brazilian Jail
The Brazilian State Attorney General has dismissed allegations that Johann Steynberg, the late mastermind of a South African bitcoin ponzi scheme, was granted irregular access to a computer and the internet while in prison. Acting public prosecutor Lauro Machado Nogueira recently released a report stating that evidence from prison authorities contradicted these claims. Additionally, Steynberg, […]
Bitcoin News
BTC Ponzi Scheme Mastermind Suffers Heart Attack, Analyst Eyes $300K BTC Price, and More — Week in Review
Johann Steynberg, the mastermind behind a South African bitcoin Ponzi scheme, died of a heart attack while under house arrest in Brazil. A technical analyst predicts a significant surge in Bitcoin’s price, suggesting it could reach 0,000 during the upcoming aggressive phase of the bull cycle. The FBI is cautioning the public against using unregistered […]
Bitcoin News
South African BTC Ponzi Scheme Mastermind Succumbs to Heart Attack While Detained in Brazil
Johann Steynberg, the mastermind behind a South African bitcoin Ponzi scheme, recently died of a heart attack while under house arrest on a farm in Brazil. According to his Brazilian wife, Steynberg left no will and had no assets that could be inventoried. South African Police Investigate Steynberg’s Reported Death Johann Steynberg, a South African […]
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‘Eccentric’ Crypto Laundering Mastermind Dreamed of Being Anointed a Buddhist Goddess
Zhimin Qian, the alleged mastermind behind the cryptocurrency laundering, dreamed of being anointed as a Buddhist goddess by the Dalai Lama. Qian also had plans to build a Buddhist temple, an airport, and a port in Danube, a fictitious micronation situated between Serbia and Croatia. Zhimin Qian’s Digital Diary Zhimin Qian, the alleged mastermind behind […]
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Ukrainian Police Collaborate With Europol to Apprehend Alleged Cryptojacking Mastermind
The Ukrainian police, in collaboration with Europol, recently apprehended the alleged mastermind behind a cryptojacking scheme. According to a statement released by Europol, the arrest underscores why the private sector should collaborate with law enforcement.
Law Enforcement and Private Sector Collaboration
The Ukrainian police recently arrested a 29-year-old man accused of masterminding a complex cryptojacking scheme. The unnamed man, who was apprehended in Mykolaiv, is believed to have mined cryptocurrencies worth over million using illegally accessed cloud resources.
According to a statement released via European Police (Europol), the alleged cryptojacker’s arrest followed months of collaboration between Ukrainian law enforcement, Europol and an unidentified cloud services provider. The statement said the arrest underscores why the private sector should collaborate with law enforcement.
Explaining how the probe, which saw law enforcement agents comb three properties associated with the cryptojacker, unfolded, Europol said:
“A cloud provider approached Europol back in January 2023 with information regarding compromised cloud user accounts of theirs. Europol shared this information with the Ukrainian authorities, who subsequently opened an investigation.”
On the day of the arrest, the European Cybercrime Centre (EC3) of the law enforcement agency set up a command post to support the National Police of Ukraine.
Meanwhile, in the statement, Europol shared some anti-cryptojacking tips that cloud service providers can use to stop criminals from illegally accessing cloud computing infrastructure. One way cloud providers can do this is by having strong access controls in place.
Cloud service providers can also block cryptojackers by regularly monitoring cloud environments for suspicious activities and keeping cloud resources updated, the statement added.
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Jailed Mastermind of South African Bitcoin Scam Reportedly Getting Preferential Treatment in Brazilian Prison
Johann Steynberg, the imprisoned CEO of Mirror Trading International, a South African Bitcoin scam entity, is allegedly receiving preferential treatment in a Brazilian prison. The General Directorate of Penitentiary Administration (DGAP) has confirmed receiving a complaint about Steynberg’s access to a computer and the internet from inside the office of a Brazilian prison warden.
Steynberg’s Meetings With Lawyer and Wife Held in Prison Warden’s Office
Johann Styenberg, the jailed mastermind of the online bitcoin investment scam Mirror Trading International (MTI), has reportedly accessed a computer and the internet while detained in a Brazilian prison. According to a local report, Steynberg has allegedly used the computer to access the internet from inside the Goiás prison warden’s office.
In addition to using the warden’s office to access the internet, the MTI mastermind is also accused of rendezvousing with his “wife” and lawyer in this office.
As previously reported by Bitcoin.com News, Steynberg has been in detention since his arrest in December 2021 for using forged identity documents. A Brazilian court has since sentenced the CEO of the collapsed bitcoin scam entity to three and a half years in prison for the crime. However, Steynberg, who faces extradition to either the U.S. or South Africa, has appealed the ruling.
General Directorate of Penitentiary Administration Receives Complaint
The fresh allegations against Steynberg, who fled South Africa in late 2020, were reportedly made by Maxsuel Miranda das Neves, the president of the Union of Servers of the Penal Execution System (SINSEP-GO) in the State of Goiás. In a video shared via Instagram, Miranda das Neves said he has since asked the director general of the prison to investigate the matter.
The SINSEP leader said he plans to raise this matter with the FBI, Interpol, the U.S. Embassy, and the Brazilian judge who is handling Steynberg’s fake documents case.
A report by Portal da Bitcoin has stated that the General Directorate of Penitentiary Administration (DGAP) has confirmed receiving Miranda das Neves’ complaint.
“The Criminal Police has reaffirmed that the fact is being investigated seriously and with commitment to the legislation. At the end of the investigation, the result will be announced. Finally, DGAP reiterates its belief in the serious and honest work of the employees of this institution, who have done a lot for public security in the State of Goiás,” the DGAP reportedly said.
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Mastermind Behind Massive Crypto Ponzi Scheme AirBit Club Receives 12-Year Prison Sentence
In a landmark verdict, Pablo Renato Rodriguez, the co-founder of AirBit Club, has been sentenced to 12 years in prison by US District Judge George B. Daniels.
According to the US Department of Justice (DOJ), Rodriguez, along with his co-conspirators, masterminded a sprawling global pyramid scheme that defrauded investors of millions of dollars through false promises of cryptocurrency trading and mining profits.
AirBit Co-Founder Convicted For 0 Million Crypto Fraud
Per the DOJ’s investigations, the elaborate scheme involved luring unsuspecting and often inexperienced investors into purchasing AirBit Club memberships with the guarantee of substantial returns.
However, instead of engaging in legitimate cryptocurrency activities, Rodriguez and his cohorts allegedly diverted the funds for personal gain while employing an intricate money laundering operation to conceal their ill-gotten profits.
Rodriguez’s co-defendants, Gutemberg Dos Santos, Scott Hughes, Cecilia Millan, and Karina Chairez, have already pleaded guilty and await sentencing. The court has also ordered the forfeiture of the fraudulent proceeds, which include a staggering 0 million worth of assets, such as US currency, Bitcoin (BTC), and real estate.
Describing Rodriguez’s actions as a flagrant exploitation of cryptocurrency for fraudulent purposes, US Attorney Damian Williams emphasized the importance of this case in deterring potential fraudsters from making false promises of lucrative cryptocurrency investments.
Troubling Pattern Of Fraudulent Ventures
According to court documents, Rodriguez and Dos Santos founded AirBit Club in 2015 and “aggressively” marketed it as a multilevel marketing club operating in the cryptocurrency industry.
The duo reportedly organized extravagant expos and presentations worldwide, enticing victims to invest in cash and providing them access to an online portal showcasing false investment returns.
As early as 2016, victims who attempted to withdraw funds encountered excuses, delays, and exorbitant hidden fees. The scheme’s architects, including Rodriguez, spent the defrauded money on luxury items, financed more expos to attract additional victims, and siphoned funds through a network of domestic and foreign bank accounts.
According to the DOJ, Rodriguez’s attorney trust account, managed by Scott Hughes, played a crucial role in concealing the illicit proceeds of the AirBit Club scheme.
Before AirBit Club, Rodriguez and Dos Santos were involved in another pyramid investment scheme called Vizinova, which led to a legal battle with the US Securities and Exchange Commission (SEC).
Hughes, an attorney representing Rodriguez and Dos Santos in the Vizinova case, later assisted them in perpetrating the AirBit Club fraud by removing negative information about both schemes from the internet.
With Rodriguez’s sentencing, justice has been served to one of the key figures responsible for defrauding countless victims through AirBit Club.
Featured image from Shutterstock, chart from TradingView.com
Report: Brazilian Court Fines Mastermind of South African Bitcoin Ponzi Scheme
A court in Brazil has found Johann Steynberg, the mastermind of the bitcoin ponzi scheme Mirror Trading International (MTI), guilty in a case in which he is accused of using a forged identity document. The court, however, commuted Steynberg’s three-and-a-half-year sentence to a fine of just over ,000. Both Steynberg’s lawyers and the prosecution team have reportedly appealed the court’s decision.
MTI Boss Avoids Jail Time
A Brazilian court has reportedly found Johann Steynberg, the CEO of Mirror Trading International (MTI) — the defunct bitcoin ponzi scheme — guilty in a case in which he is accused of using forged identity documents. However, according to a Mybroadband report, Steynberg, who was sentenced to three and a half years in prison, is unlikely to serve the jail time after the court reportedly ordered him to pay a fine instead.
As previously reported by Bitcoin.com News, Steynberg, who fled South Africa in late 2020, was arrested by Brazilian law enforcement in December 2021. At the time of his arrest, Steynberg was found to be in possession of a forged Brazilian identity document. Following his arrest, South African authorities reportedly kickstarted the process to have the MTI boss extradited.
Steynberg’s subsequent attempt to block the extradition proceedings was rebuffed by a Brazilian judge in 2022. Since then, the MTI mastermind has seemingly remained in “precautionary detention.”
Steynberg Appeals Against ‘Harsh’ Sentence
On why the Brazilian court commuted Steynberg’s jail sentence to a total fine of just over ,100, the report cited the South American country’s penal code which states that jail terms of four years or lower for non-violent crimes can be converted to fines.
Meanwhile, the report said Steynberg’s lawyers have signaled their intention to appeal the court’s decision. The lawyers have said Steynberg’s alleged offense warrants a less harsh sentence than the three and a half years handed down by the court. The prosecution team, which is also appealing the court’s verdict, suggested that the punishment given to Steynberg is not commensurate with the offense.
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