ChainCatcher News: U.S. Attorney for the Southern District of New York, Damian Williams, announced on September 26 that Eugene William Austin Jr. (also known as "Hugh Austin") was found guilty on three counts for his involvement in a conspiracy of telecommunications fraud, money laundering, and interstate transportation of stolen property. Austin and his son, Brandon Austin, deceived numerous victims across the United States, resulting in millions of dollars in losses.Austin's criminal activities included impersonating a high-value cryptocurrency sales broker, promising high returns on short-term cryptocurrency investments, and seeking high-net-worth investors for startups. They used the proceeds from the scams for personal expenses, such as luxury hotels, restaurants, and shopping. One case involved a $5 million cryptocurrency scam. Austin is scheduled to be sentenced on February 20, 2025, and faces a maximum of 45 years in prison. His son Brandon had previously pleaded guilty and was sentenced to 4 years in prison.

ChainCatcher news, according to Cointelegraph, U.S. federal prosecutors have managed to suspend the bail order of SafeMoon CEO Braden John Karony on the grounds that he poses a flight risk and that his release could "pose a danger to the community."

ChainCatcher news, Bloomberg reported, citing sources, that former FTX CEO Ryan Salame is negotiating with federal prosecutors to acknowledge criminal charges against him following the FTX collapse, with details of a potential plea agreement yet to be finalized.It remains unclear whether he will enter into a cooperation agreement with prosecutors and testify against FTX co-founder Sam Bankman-Fried (SBF). Reports indicate that Salame's former colleagues Gary Wang, Caroline Ellison, and Nishad Singh have already acknowledged their roles in the multi-billion dollar fraud case involving FTX and will serve as key witnesses for the government in the SBF case. If Salame pleads guilty, he will become the fourth former FTX executive to do so.Additionally, the U.S. Department of Justice still plans to bring illegal campaign contribution charges when SBF goes on trial in October. Prosecutors are set to submit an alternative indictment next week, bringing seven charges against SBF. The Justice Department plans to include charges of SBF using customer funds for campaign contributions in the wire fraud allegations.

ChainCatcher news, federal prosecutors requested a federal judge to detain former FTX CEO SBF months before his trial. Prosecutor Danielle Sassoon stated at a hearing in Manhattan federal court on Wednesday, "There is no set of release conditions that can ensure the safety of the community," Sassoon told the court that the currently house-arrested SBF attempted to "intimidate" Caroline Ellison and "made 100 calls to the reporter of the New York Times article, some lasting over 20 minutes." (source link)

ChainCatcher news, according to Digital Asset, Terraform Labs co-founder Do Kwon has recently hired a global law firm DENTONS to assist him in dealing with the prosecution and investigation by U.S. federal prosecutors. (Source link)

ChainCatcher news, the Brazilian Federal Public Prosecutor's Office and the Federal Police have launched an investigation into Binance for alleged financial crimes. The investigation was initiated after a report from the market regulator, the Brazilian Securities Commission (CVM). It was reported that the CVM informed the São Paulo State Attorney General that the exchange might continue to offer cryptocurrency derivatives to Brazilian customers, even though the state had issued a cease-and-desist order.Binance stated that it would not comment on the ongoing investigation and reiterated that it does not offer derivatives in Brazil, that its operations comply with local regulations, and that it maintains a long-term dialogue with authorities to promote the development of Brazil and the Brazilian cryptocurrency and blockchain sector. (Source link)

ChainCatcher news, federal prosecutors stated in a letter to the court that SBF will face trial this fall. According to the proposed bail conditions, he will be limited to using online tools and websites from a whitelist, as well as restrictions on monitoring software usage.According to the letter, both parties proposed to restrict SBF to a selected list of whitelisted websites, as well as online tools related to his defense. These tools include Zoom, government websites, and several blockchain data explorers. The proposed personal websites include news sites such as Bloomberg, the New York Post, and The Block, streaming services Netflix and Spotify, as well as consumer delivery apps Uber Eats and Door Dash. The government stated that "the identified personal use websites" do not pose a danger to the community, including because they lack private communication platforms and do not pose a risk of accessing/transferring cryptocurrency assets."Additionally, other proposed measures include a ban on purchasing new electronic products that can access the internet, as well as a ban on installing activity monitoring software on SBF's laptop. He is required to register his electronic products with the court, and his parents' personal devices will also be registered in court and equipped with monitoring software. (The Block)

ChainCatcher news, according to court documents, federal prosecutors seized $697 million in assets from former FTX CEO and founder SBF this Friday.These assets primarily consist of Robinhood stock, along with $6 million in SBF's Silvergate bank account and $50 million in a Moonstone bank account. Prosecutors stated that the funds used by SBF to purchase over 55 million shares of Robinhood stock were derived from misappropriated customer funds. (source link)

According to a report by Reuters, sources have disclosed that U.S. federal prosecutors have launched an investigation into digital wallet transactions related to SBF. It is reported that prosecutors from the Southern District of New York will confirm whether SBF attempted to transfer assets or cash out some digital assets without approval. So far, the Manhattan District Attorney's Office and SBF's lawyers have not responded to requests for comment.In a previous report, SBF tweeted to clarify that the funds transferred from the Alameda Research wallet after his bail are not related to him. He stated, "None of this was done by me; I have not and cannot access these funds. I can no longer access these funds." (Reuters)

ChainCatcher news, citing sources from Reuters, reported that there is a division among prosecutors in the U.S. Department of Justice regarding whether to file criminal charges against Binance, including money laundering. Some prosecutors believe they have gathered enough evidence to bring criminal charges against Binance executives, including CZ; others believe more time is needed to review additional evidence.According to insiders, the U.S. Department of Justice's investigation into Binance began in 2018, covering issues such as unlicensed money transfers, money laundering, and violations of criminal sanctions. Additionally, sources said that officials from the Department of Justice have discussed potential plea agreements with Binance's lawyers. (source link)

ChainCatcher news, citing sources from Bloomberg, states that months before FTX filed for bankruptcy protection, the U.S. Attorney's Office for the Southern District of New York had been investigating whether the exchange complied with the Bank Secrecy Act. This investigation targets cryptocurrency platforms with branches in the U.S. and overseas, including FTX's Bahamian entity.FTX is currently facing additional investigations from the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the U.S. Department of Justice. The U.S. House Financial Services Committee also announced last week that it will hold hearings on the FTX collapse and its impact on the broader digital asset industry. (Bloomberg)