ChainCatcher news, Maryland Heights man Richard Charles Appelbaum III has been sentenced to three years in prison for laundering millions of dollars through cryptocurrency and ordered to pay restitution of $2.3 million.The 40-year-old Appelbaum conspired with others to transfer the proceeds of business email compromise (BEC) and romance fraud schemes into cryptocurrency through Coins2trade. Under the alleged recruitment of a cryptocurrency figure known as "E.S.," he received training to open fraudulent business and personal accounts, concealing the connection of these accounts to cryptocurrency. More than 36 victims were defrauded, and Appelbaum laundered $3.5 million, transferring the funds to different accounts to obscure their source. The investigation led by the FBI uncovered 34 wire transfers totaling $8.3 million related to the fraud.

ChainCatcher news, according to DL News, the U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Touzi Capital and its CEO Eng Taing, accusing them of a $115 million unregistered securities offering fraud. According to the complaint, from 2021 to early 2023, the defendants raised approximately $118 million through false advertising of cryptocurrency mining and debt restructuring businesses, including $95 million from the crypto mining project and $23 million from the debt restructuring project, involving over 1,500 investors across the United States.The SEC stated that Taing falsely promoted the project as a "stable and predictable" high-yield savings account investment, while in reality, these investments were "highly speculative and lacked liquidity." The SEC accused the defendants of misappropriating investor funds for personal purposes and continuing to solicit investors even after the business began to collapse. In fiscal year 2024, the SEC initiated a total of 583 enforcement actions, obtaining a record $8.2 billion in financial compensation.

ChainCatcher news, according to Cointelegraph, U.S. District Judge Ann Marie McIff Allen in Utah has denied the appeal request from Kristoffer Krohn, a promoter of Green United, regarding the September 23 ruling that allowed the U.S. Securities and Exchange Commission (SEC) to sue Green United LLC. The judge stated that Krohn failed to provide grounds for the appeal.In the arguments against the dismissal of the lawsuit, Krohn claimed that the SEC failed to prove that the Green Boxes offered by Green United were investment contracts, which the regulatory agency alleged in its complaint. He also argued that the SEC confused elements in the Howey test that defines securities. However, Judge Allen stated that Krohn's arguments were incorrect, accusing him of selectively quoting terms from two different definitions and "failing to provide any legal support to demonstrate that any court has adopted the definition he described."In 2023, the SEC charged that executives of Green United operated a fraudulent cryptocurrency mining scheme that defrauded investors of $18 million through the sale of Green Boxes and Green Boxes investment products from April 2018 to December 2022.

ChainCatcher news, the police in Busan, South Korea, have arrested a group of scammers who operated a fraudulent investment group under the guise of cryptocurrency futures investment, promising high returns. On November 21, the police detained the main suspect A and 23 others on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes and the Act on the Prohibition of Similar Fundraising Activities.According to police investigations, from October last year to May this year, A and others set up fake investment websites, impersonated investment experts, and lured 134 victims into participating in the so-called "investment guidance group" through social media ads and text messages, promising capital protection and high returns, defrauding a total of about 6.5 billion won (approximately 4.65 million USD).

ChainCatcher news, FTX co-founder and former CTO Gary Wang provided extensive cooperation to U.S. prosecutors, resulting in a sentence that has already been served, with no additional prison time.Wang faced a maximum of 50 years in prison but began cooperating with authorities shortly after the collapse of FTX in November 2022.Prosecutor Andrew Roos emphasized the uniqueness of Wang's cooperation, highlighting his technical expertise and willingness to assist from the very beginning. Roos stated, "He cracked half the case for us on the first day of cooperation." Wang's insights were crucial for understanding how FTX's code allowed the misappropriation of customer funds, which played a central role in the fraudulent activities associated with the exchange.

ChainCatcher news, according to the Wen Wei Po report, the Hong Kong police announced data on online investment fraud cases for the first 9 months of 2024. A total of 3,468 cases were reported, involving approximately HKD 2.2 billion, with 35% related to virtual assets. Although this is a decrease compared to the same period last year, the number of cases in October surged by 24% month-on-month, indicating a rebound trend.The largest single loss came from a virtual asset scam, where a female executive of a cryptocurrency company was defrauded of HKD 78.47 million. The police remind that nearly 60% of victims first contacted the scammers through instant messaging software, and 40% of the victims are aged between 40 and 59.From January to October 2023, investment fraud cases reached 5,017, involving approximately HKD 4.93 billion. In September this year, there were 312 cases with an amount of HKD 187 million; in October, it increased to 380 cases, involving HKD 248 million, showing an upward trend. The police urge investors to remain vigilant and beware of virtual asset investment traps.

ChainCatcher news, the case of "virtual asset T-Coin pyramid scheme" with 30,000 victims in South Korea has recently been prosecuted by the Eastern District Prosecutors' Office in Seoul. The individuals involved, including Choi and Lee, promised high returns under the guise of "investing in T-Coin, AI automatic trading" from 2017 to 2019, collecting a total of 3.9251 billion won.Since the case received complaints in September 2020, it has gone through a complex back-and-forth between the police and prosecutors, until the newly appointed prosecutor Lee Sang-won took the initiative to intervene, re-examine the case, and gather complainants for investigation, ultimately transferring the case to court within six months. The former prosecutor commented that this case highlights the phenomenon of evasion and delays in investigations between the police and prosecutors.

ChainCatcher news, according to Cryptonews, Thai authorities have cracked a cross-border cryptocurrency fraud case, which allegedly defrauded a local woman of over $620,000.According to local reports, the network spans Thailand, Cambodia, and Myanmar, operating a highly organized scam involving fake online investment opportunities, identity theft, and cross-border money laundering. Investigations reveal that the suspects used a fake investment chat group to lure victims, subsequently moving to private messaging applications to exert more control. In this case, the victim Mallika contacted the scammers through a public Facebook group and was ultimately persuaded to invest in a fake high-return cryptocurrency and stock portfolio, transferring a total of 21 million Thai Baht (approximately $621,000).The Thai Immigration Bureau has obtained arrest warrants and apprehended several suspects, and the case is still under further investigation.

ChainCatcher news, according to Cointelegraph, Green United promoter Kristoffer Krohn filed a motion on October 24 in the U.S. District Court for Utah, requesting the Tenth Circuit Court of Appeals to rule on the SEC's allegations in a $18 million cryptocurrency mining fraud case. Krohn argues that the SEC's application of securities law is incorrect, claiming that the company is selling high-performance computing hardware rather than securities.Previously reported, U.S. District Court Judge Ann Marie McIff Allen dismissed the defendants' motion to dismiss, stating that the SEC's allegations of unregistered securities sales are "well-supported."

ChainCatcher news, according to HK01, a virtual currency scam occurred in Tai Kok Tsui, Hong Kong. At around 4 PM on the 26th, the police received a report from a woman who stated that at around 1 PM, she went to a virtual currency exchange (OTC) at 55 Tai Kok Tsui Road, intending to exchange Tether (USDT) for cash. After transferring the funds to a male staff member via an online wallet, the staff member asked her to wait for a colleague to bring cash, then left under the pretext of needing to step out.The female victim waited for a long time but did not see anyone coming, so she called the police for help. The police classified the case as "fraud" and have not arrested anyone yet. It is reported that the female victim lost 12,000 Tether, equivalent to about 93,000 Hong Kong dollars. The woman stated that she had been paying attention to the store on social media Instagram since August, as it appeared to have been operating for several months and showed evidence of customer transactions, leading her to believe the store was trustworthy.

ChainCatcher news, on October 25, the Ministry of Public Security held a special press conference in Beijing to report on the effectiveness of the measures taken by the national public security organs to combat and rectify ethnic asset unfreezing fraud crimes.Zhou Qiancheng, head of the Criminal Investigation Division of the Ningbo Public Security Bureau in Zhejiang Province, introduced that at the beginning of this year, Ningbo public security organs discovered that local residents were participating in the "China International Plum Blossom Association" ethnic asset unfreezing fraud project. Upon investigation, it was found that the suspects established an illegal organization called "China International Plum Blossom Association" as bait with high pension returns, recruiting participants from all over the country, and collecting fees under the names of "membership fees," "venue fees," "certificate fees," and "personal income tax," using virtual currency to launder money and illegally profit. The involved funds have been confirmed to exceed 58 million yuan.Currently, the case is still under further investigation.

ChainCatcher news, according to Protos, five suspects in Austria have been sentenced to prison for their involvement in a $16 million pyramid scheme that deceived 40,000 victims into investing in real estate and cryptocurrency. The perpetrators squandered the funds on luxury cars, private jets, and other extravagant items.The trial lasted 60 days and is referred to as the largest fraud case in Austrian history.Police stated that the involved gang used complex methods to conceal the flow of funds, making the investigation more challenging. Ultimately, the five defendants were sentenced to 18 months to 5 years in prison, while another five were acquitted.

ChainCatcher news, according to Cointelegraph Magazine, an investigation has found that a counterfeit Rabby wallet scam has resulted in user losses of approximately $1.6 million in cryptocurrency, with the funds flowing to a wallet address named "Konpyl." The counterfeit application was approved and listed on the Apple App Store for four days in February this year, during which it stole funds from multiple victims.Private investigators revealed that "Konpyl" has been linked to at least 20 scam cases, specifically targeting individual users who have invested their life savings. The case is currently under further investigation.

ChainCatcher news, according to Bitcoin.com, Indian actress Tamannaah Bhatia has been questioned by the Enforcement Directorate (ED) of India for allegedly promoting the "HPZ Token" platform, which is accused of deceiving investors through a cryptocurrency scheme. Authorities are investigating whether she supported the scam and whether she promoted IPL content related to illegal gambling. It remains unclear whether Tamannaah Bhatia is involved, but the investigation is ongoing.Tamannaah Bhatia had previously been questioned in Maharashtra for similar allegations. Investigators looked into her promotion of the Fairplay betting application, which is under investigation for encouraging the viewing of IPL matches related to illegal gambling.Reports suggest that Tamannaah Bhatia promoted IPL content on Fairplay, raising concerns about her role in supporting questionable activities. Investigators are also reviewing her appearances in HPZ Token events, where she received appearance fees, to determine whether her endorsement helped legitimize the platform, which is now allegedly part of a scam.

ChainCatcher news, according to Cointelegraph, the U.S. Department of the Treasury stated on October 17 that it has recovered $4 billion in "fraud and improper payments" in fiscal year 2024 by using artificial intelligence to sift through data. By adopting artificial intelligence, the amount of fraud recovered by the Treasury has increased nearly fourfold compared to the previous fiscal year, which recovered $652.7 million in fraudulent payments.

According to CNBC, German citizen Horst Jicha has become a fugitive after skipping bail in a $150 million cryptocurrency fraud case in New York. He tampered with his ankle monitor on October 3 and subsequently failed to appear in court. The Brooklyn U.S. Attorney's Office is actively investigating to apprehend him. Of Jicha's $5 million bail, $4 million was personally guaranteed by his partner, children, and three others, while $1 million in cash has been deposited with the federal government, putting their bail amounts at personal risk.The case against Horst Jicha was originally set to go to trial on March 31, facing multiple charges of securities fraud and conspiracy. Prosecutors indicated that the USI Tech platform was essentially a fraudulent multi-level marketing scheme, in which Jicha deceived investors, residing in Brazil and Spain before and after his arrest. He was arrested in Florida at the end of 2023 and was released on bail in January, but violated the conditions of his bail by failing to appear in court, meet with his attorney, or seek medical attention. After his arrest, approximately $150 million worth of Ethereum and Bitcoin was sent to a cryptocurrency deposit address controlled by Horst Jicha.

ChainCatcher news, according to the Sing Tao Daily, the Criminal Division of the Wong Tai Sin Police District in Hong Kong conducted an enforcement operation codenamed "Joint Fight" from September 19 to 26, successfully dismantling a group that used cryptocurrency for money laundering, arresting 25 individuals involved in 39 fraud cases, with losses exceeding 7 million HKD.The police stated that the 25 arrested individuals (18 men and 7 women, aged 19 to 65) included the mastermind of the group, three key members, and 21 puppet account holders. The police seized more than 20 electronic devices and two cryptocurrency cold wallets.The group had been operating since May 2023, using puppet information to open bank and cryptocurrency exchange accounts, obtaining funds through various types of scams, and converting the money into cryptocurrency via P2P transactions.The 39 fraud cases involved mainly online investment, job-seeking, and fake customer service scams, affecting 39 victims (23 men and 16 women, aged 19 to 72), with the largest single loss amounting to 1.6 million HKD.

ChainCatcher news, according to Decrypt, South Korean financial regulators have issued a stern warning, stating that a life sentence will be imposed for cryptocurrency fraud cases that profit over $4 million (approximately 5 billion won). This warning was issued following the enactment of the South Korean "Virtual Asset User Protection Act" in July 2024, which aims to prevent cryptocurrency crimes, partly inspired by the events involving Terra/Luna founder Do Kwon and the collapse of the FTX exchange.In addition, the new law stipulates other penalties, including fines of 3 to 5 times the illegal profits, as well as a maximum of one year of imprisonment.

ChainCatcher news, according to an official announcement, the Enforcement Directorate (ED) of India has arrested four individuals related to the Fiewin gaming application scam, which allegedly caused victims to lose over 47.6 million dollars. The Fiewin app lured users into online gambling and gaming, falsely claiming that profits could be easily made. In deep collaboration with Binance's Financial Intelligence Unit (FIU), the ED's investigation uncovered the connection between the scam and digital wallets.

ChainCatcher news, according to China News Network, the Yunlin District Prosecutor's Office in Taiwan recently cracked a fraud case, with the victims losing more than 134 million New Taiwan dollars (approximately 4.2 million US dollars). It is reported that last July, the police arrested a 30-year-old "runner" (referring to someone who specifically helps fraudsters withdraw scam funds) named Chen, who was suspected of committing fraud using virtual currency. Subsequently, another 28-year-old "runner" named Chen was arrested, and the local court approved a request for detention.The prosecution stated that it was discovered that the involved "runner" named Yu was a member of the Bamboo Union's Mingren Society, and his superior, Wu, led dozens of Taiwanese "runner" groups, having managed more than 40 virtual currency wallets. The prosecution indicated that more than 20 searches were conducted throughout the case, seizing over 90 million dollars in cash and virtual currency worth more than 50 million dollars. A total of 33 individuals involved in the case were prosecuted for crimes including fraud, leaking secrets, forgery, and money laundering.