Michael Joseph McElhiney, age 37 and formerly of Spokane, Washington, has pleaded guilty to wire fraud, the U.S. Department of Justice (DOJ) announced on Wednesday. Between March 4, 2021, and Sept. 10, 2022, McElhiney defrauded investors by falsely claiming to operate a cryptocurrency investment fund called Mac Blockchain Solutions. He contacted victims in person, via […]
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Crypto Scam Promoter Pleads Guilty, Faces Up to 20 Years in US Prison
Juan Tacuri, a major promoter of the cryptocurrency Ponzi scheme Forcount, later renamed Weltsys, has pleaded guilty to conspiracy to commit wire fraud in the Southern District of New York. The scheme primarily targeted Spanish-speaking communities in the U.S., and Tacuri benefited significantly, amassing millions from his fraudulent activities. Scheduled for sentencing on Sept. 24, […]
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Woman Pleads Guilty to Using Bitcoin for Dark Web Hitman
In Salt Lake City, Krista Renae Stone, 23, pleaded guilty to using the dark web to arrange a murder-for-hire in 2023. According to court documents, Stone utilized bitcoin to pay ,000 for the hit. Between March and September 2023, she accessed a website offering “hitman for hire” services, providing detailed information about the intended victim, […]
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Lawyer Pleads Guilty in $9.5M Crypto Ponzi Scheme — Faces 5 Years in Prison
David Kagel, a disbarred California attorney, pleaded guilty to orchestrating a cryptocurrency Ponzi scheme that defrauded victims of over .5 million. Kagel, 85, promised high returns through artificial intelligence trading bots and falsely claimed to hold million in bitcoin to secure investments. He used his attorney position to instill trust, providing fake letters on […]
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Former Bank CEO Pleads Guilty to Embezzling $47M to Buy Crypto, Leading to Bank Collapse
Former Heartland Tri-State Bank CEO Shan Hanes pleaded guilty on Thursday to embezzling .1 million for personal cryptocurrency purchases, leading to the bank’s collapse. From May to July 2023, Hanes executed at least 10 wire transfers from the Elkhart-based bank to cryptocurrency accounts. The bank’s failure resulted in a total loss of equity for investors. […]
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BTC-e Operator Alexander Vinnik Pleads Guilty to Money Laundering Charges
According to a press release from the U.S. Department of Justice, Alexander Vinnik, a former operator of the BTC-e exchange, has admitted to a conspiracy to launder money. This admission of guilt comes over six years following his arrest in Greece on July 25, 2017. BTC-e’s Vinnik Pleads Guilty to Money Laundering The Department of […]
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Samourai Wallet Co-Founder Keonne Rodriguez Pleads Not Guilty, Released on $1M Bail
On Monday, April 29, Keonne Rodriguez, co-founder of the non-custodial bitcoin wallet Samourai, entered a plea of not guilty to accusations of operating a money transmitter and engaging in money laundering. Rodriguez secured his release by posting a million bail and will be confined to his residence in Harmony, Pennsylvania, with his movements monitored […]
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Detained Binance Executive Pleads Not Guilty; Nigerian Judge Sends Him to Prison
The Binance executive detained by Nigerian authorities for nearly six weeks has pleaded not guilty to charges of money laundering. Binance expressed deep disappointment that Tigran Gambaryan, who holds no decision-making power within the company, remains in detention. Judge Dismisses Tigran Gambaryan’s Arguments Tigran Gambaryan, a detained executive from Binance, pleaded not guilty to money […]
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Indian National Pleads Guilty in Case Involving ‘Largest Single Cryptocurrency and Cash Seizure in DEA History’
An Indian national has pleaded guilty in a case involving “the largest single cryptocurrency and cash seizure” in the U.S. Drug Enforcement Administration (DEA) history. The defendant “is designated as a Consolidated Priority Target, which makes him one of the most significant drug trafficking threats in the world,” the U.S. Department of Justice (DOJ) described.
This Case Involves Largest Single Cryptocurrency and Cash Seizure in DEA History, Says DOJ
The U.S. Department of Justice (DOJ) announced Friday that a 40-year-old Indian national, Banmeet Singh, has pleaded guilty to “running a dark web narcotics conspiracy.” Specifically, he pleaded guilty to conspiracy to possess with the intent to distribute controlled substances and conspiracy to commit money laundering. The announcement details:
According to the DEA, this case involves the largest single cryptocurrency and cash seizure in DEA history; the defendant has forfeited cryptocurrency accounts that ultimately became worth 0 million.
According to court documents, Singh created vendor marketing sites on dark web marketplaces to sell controlled substances. Customers paid with cryptocurrency, and Singh personally shipped or arranged the shipment of controlled substances from Europe to the United States through U.S. mail or other shipping services.
The DOJ explained that from at least mid-2012 through July 2017, Singh controlled at least eight distribution cells in various U.S. states. “Individuals in those distribution cells received drug shipments from overseas and then re-packaged and re-shipped the drugs to locations in all 50 states, Canada, England, Ireland, Jamaica, Scotland and the U.S. Virgin Islands,” the Justice Department noted.
Singh was arrested in London in April 2019 and the government secured his extradition to the U.S. last year. DEA Special Agent in Charge Orville O. Greene commented:
Banmeet Singh is designated as a Consolidated Priority Target, which makes him one of the most significant drug trafficking threats in the world.
What do you think about this case? Let us know in the comments section below.
Man Fingered in the July 2022 Hack on 2 Decentralized Exchanges Pleads Guilty to Computer Fraud
U.S. Attorney for the Southern District of New York announced on Dec. 14 that Shakeeb Ahmed, a man accused of hacking two decentralized crypto exchanges, had pleaded guilty to the charge of computer fraud. Ahmed is said to have attempted to cover his tracks by using overseas crypto exchanges and swapping the stolen assets with the privacy coin monero.
Hacker Demands Larger ‘Bounty’
Shakeeb Ahmed, the man publicly charged with the hack of an unnamed decentralized crypto exchange, recently pleaded guilty to computer fraud and has agreed to forfeit over .3 million. Damian Williams, the U.S. Attorney for the Southern District of New York, has said that Ahmed also admitted to being the individual behind the July 2022 hacking of the decentralized finance (defi) protocol Nirvana Finance.
In a statement released on Dec. 14, 2023, Williams said Ahmed, a senior security engineer, has agreed to return the stolen crypto to his victims. Chronicling Ahmed’s July 2-3 attack on the decentralized platform, the U.S. Attorney said the security engineer exploited a vulnerability in one of the platform’s smart contracts. This step enabled Ahmed to insert fake pricing data and this ultimately helped to generate approximately million worth of inflated fees.
According to the statement, Ahmed later reached out to the platform and an agreement was reached in which he would return all but .5 million worth of digital assets. The agreement was, however, conditioned on the matter not being referred to law enforcement.
On July 28, Ahmed also perpetrated an attack on Nirvana Finance which saw him earn a profit of .6 million. To resolve the matter, Nirvana Finance offered Ahmed a reward or “bug bounty” of 0,000 if he returned the stolen assets. However, according to the statement, Ahmed demanded .4 million instead.
Crypto Mixers Not Effective Anymore
After the attacks, Ahmed attempted to cover his tracks by using overseas crypto exchanges and swapping the stolen assets with the privacy coin monero. However, Williams is quoted in the statement suggesting that such efforts had been proven to be ineffective.
“In total, Ahmed used his technical know-how to steal over million and tried to cover his tracks by swapping stolen crypto for monero, using cryptocurrency mixers, hopping across blockchains, and utilizing overseas crypto exchanges. Today’s conviction shows that no matter how sophisticated the methods used, fraud is fraud, and we will swiftly catch and convict you,” Williams said.
In addition to attempting to cover his tracks, Ahmed’s web search history just days after the hack suggested that he was planning to flee the United States. Meanwhile, according to the statement, Ahmed is set to be sentenced by U.S. Judge Victor Marrero on March 13, 2024.
What are your thoughts on this story? Let us know what you think in the comments section below.