Rashawn Russell, a former investment banker, was sentenced on Thursday to 41 months in prison for a cryptocurrency fraud scheme that caused .5 million in investor losses. From November 2020 to August 2022, Russell deceived multiple victims by promising high returns from cryptocurrency investments, only to misappropriate their funds for personal use, gambling, and repaying […]
Bitcoin News
Former FTX Executive Ryan Salame Sentenced to 7.5 Years for Criminal Charges
Former FTX executive Ryan Salame was sentenced to seven and a half years in prison by Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York after pleading guilty to criminal charges, including engaging in an unlawful political influence campaign and operating an unlicensed money transmitting business. Salame, who once […]
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Tornado Cash Developer Alexey Pertsev Sentenced to 64 Months for Money Laundering
A Dutch court has sentenced Tornado Cash developer Alexey Pertsev to five years and four months in prison for laundering .2 billion through the cryptocurrency mixing service. The case represents a pivotal moment for decentralized finance (defi) regulation and crypto privacy. Dutch Court Imprisons Tornado Cash Developer for .2 Billion Money Laundering via Crypto Mixing […]
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Woman Sentenced to 9 Years in Prison for Crypto-Funded Murder-for-Hire Scheme
Michelle Murphy, 58, from Bedford, Texas, has been sentenced to nine years in federal prison for attempting to hire a hitman using bitcoin to kill her boyfriend’s lover. Charged in September 2023 and pleading guilty in December, Murphy used the dark web to orchestrate the crime, paying ,510 in bitcoin. The transaction was traced through […]
Bitcoin News
BREAKING: Former Binance CEO CZ Behind Bars: Sentenced To Jail For 4 Months
In a significant development for the crypto industry, Changpeng Zhao, commonly known as CZ, the founder of Binance, the world’s largest cryptocurrency exchange, has been imprisoned for four months.
The sentencing follows his guilty plea to charges related to enabling money laundering activities within his crypto exchange. The verdict was delivered in Seattle federal court and marks the culmination of US authorities’ multiyear investigation into Binance.
Lighter Sentence For Binance Founder
The sentence handed down to Zhao was notably less severe than the three-year prison term sought by federal prosecutors. In contrast, the defense had requested five months of probation, ultimately given the outcome wanted.
Under the terms of a settlement reached in November of 2023, Zhao agreed to step down as CEO of Binance, as part of an agreement to resolve the investigation.
The probe primarily focused on allegations that Binance failed to implement an effective anti-money laundering program, as the Bank Secrecy Act required.
Regulatory Pressure Mounts
Zhao was also accused of knowingly allowing Binance to process transactions involving funds derived from unlawful activities, including transactions between US citizens and individuals residing in sanctioned jurisdictions.
As part of the resolution, Binance was ordered to pay an imposing .3 billion fines and forfeiture. Additionally, Changpeng Zhao personally agreed to pay a substantial million fine, underscoring the severity of the charges and the commitment to accountability.
The legal challenges for Binance do not end there. The company faces separate lawsuits from the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for alleged mishandling of customer assets and operating an illegal, unregistered exchange within the United States.
As of this writing, the exchange’s native token, Binance Coin (BNB), is trading at 3, down over 3% in the last 24 hours and 7% in the last seven days.
Featured image from Bloomberg, chart from TradingView.com
Former Binance Boss Changpeng Zhao Sentenced to 4 Months in Jail
On Tuesday, April 30, 2024, Changpeng Zhao (CZ), formerly the CEO of Binance, was sentenced in a Seattle courtroom for his compliance failures at the cryptocurrency exchange. The sentencing was first covered by Nikhilesh De and Danny Nelson of Coindesk, who reported directly from the courthouse. Per Nikhilesh De’s X thread, the proceedings began with […]
Bitcoin News
Former Security Engineer Sentenced to Three Years for Hacking Two Decentralized Exchanges
A former security engineer, who stole digital assets valued at more than million from two decentralized exchanges, has received a three-year prison sentence. In what has been characterized as the “first-ever” conviction for a smart contract hack, the U.S. Judge also ordered the ex-engineer to forfeit roughly .3 million. Ex-Engineer Sentenced to Three Years […]
Bitcoin News
BREAKING: Sam Bankman-Fried Sentenced To 25 Years In Prison
In a highly anticipated courtroom verdict, Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, has been sentenced to 25 years in prison for defrauding users. US District Judge Lewis Kaplan delivered the judgment during a Lower Manhattan federal courtroom hearing.
FTX Founder Sam Bankman-Fried Sentenced
Judge Kaplan sternly criticized the defense’s argument, labeling it as “misleading, logically flawed, and speculative.” As reported by our sister site, Bitcoinist, Kaplan highlighted Bankman-Fried’s obstruction of justice and witness tampering during his defense, which were significant factors considered in the sentencing decision.
Bankman-Fried expressed remorse in a statement, acknowledging that his series of “selfish” decisions as the leader of FTX had led to the exchange’s downfall. He admitted to having “thrown it all away” and expressed regret that continues to haunt him daily.
Prosecutors had initially sought a maximum sentence of 50 years, while Bankman-Fried’s legal team argued for a maximum of 6 years. In November, Bankman-Fried was found guilty on seven criminal counts, and he has since been held at the Metropolitan Detention Center in Brooklyn.
Life Plans Shattered
Late Tuesday, prosecutors submitted documents containing testimonies from victims, shedding light on the impact of Bankman-Fried’s actions. One victim, whose name was redacted, wrote a letter dated March 15, describing the destruction of their entire life and the emotional toll it had taken on their family.
They emphasized that they had entrusted their funds to FTX as a custodian, not consenting to the risks Bankman-Fried had taken with their money. The victim shared the suffering that had led to depression and even thoughts of suicide.
During the trial, prosecutors revealed that Bankman-Fried had diverted funds from FTX customers, amounting to as much as billion. These funds were allegedly used to finance a wide range of external interests, including political initiatives, speculative investments, and funding the lifestyles of FTX executives.
Featured image from Shutterstock, chart from TradingView.com
Former FTX Boss Sam Bankman-Fried Sentenced to 25 Years in Prison
On Thursday, March 28, 2024, the former head of FTX, Sam Bankman-Fried, received his sentence during a federal court proceeding in Manhattan. U.S. Marshals escorted Bankman-Fried into the courtroom at precisely 9:39 a.m. Eastern Time, as reported by Matthew Russell Lee of Inner City Press. Judge Lewis Kaplan said, ” I know the Probation Department […]
Bitcoin News
Onecoin Lawyer Mark Scott Sentenced to 10 Years for Money Laundering
Mark Scott, a lawyer entangled in the infamous Onecoin cryptocurrency fraud, was sentenced to 10 years in prison by the U.S. District Court. The sentencing comes after a 2019 conviction.
Onecoin Lawyer Mark Scott Receives Decade-Long Prison Sentence
Mark Scott, a lawyer associated with the infamous crypto firm, was sentenced to a decade in prison. Scott faced charges of bank fraud and money laundering in connection to the Onecoin scheme. This sentencing, handed down by U.S. District Judge Edgardo Ramos on Jan. 25, follows his November 2019 conviction on two felony counts.
According to Inner City Press, which reported live from the courtroom, the sentencing revealed details of Scott’s attempts to manage his assets following the conviction. Notably, he sold a Porsche for 0,000 and transferred 0,000 to an account in the Cayman Islands. These actions were brought up by the Assistant U.S. attorney as efforts to protect assets from forfeiture, which were meant to compensate Onecoin victims.
The prosecution pushed for a minimum 17-year sentence, due to Scott’s conscious involvement in laundering millions for Onecoin. Scott’s defense argued for leniency, citing his lack of prior knowledge about Onecoin’s fraudulent nature and presenting a plea for a five-year sentence, comparable to the sentencing of other defendants in the case, like Irina Dilkinska.
Judge Ramos, acknowledging the gravity of the offense and its impact on Onecoin victims, imposed a 10-year sentence, a compromise between the prosecution’s and defense’s recommendations. Before the sentencing, Scott expressed sympathy for the victims of Onecoin’s scheme, a sentiment noted by the court but insufficient to significantly mitigate his sentence.
The Onecoin saga continues to unravel, with significant figures like Onecoin co-founder Ruja Ignatova, often referred to as the “Cryptoqueen” still at large and others, including Sebastian Greenwood, already sentenced for their roles in the fraudulent operation.
Onecoin, founded in 2014 by Ignatova, was promoted as a cryptocurrency token but lacked a genuine blockchain, functioning instead as a multi-level marketing scheme. It lured investors with the promise of substantial returns, only to pay older investors with funds from new ones, a classic hallmark of a Ponzi scheme.
Do you agree with the sentencing by the U.S. District Judge? Share your thoughts and opinions about this subject in the comments section below.