Crypto crime (financing terror, money laundering, fraud, ponzi, etc.)

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US DOJ considers fairer repayment standards for crypto fraud victims​

The US Department of Justice (DOJ) wants to review the repayment process for digital assets investors who lose money to fraud and other criminal activities. An April 7 memo from the DOJ acknowledged that these investors are not getting the full value of their digital assets.
According to the memo by the Deputy Attorney General (DAG), several crypto firms entered bankruptcy in 2022, causing investors losses. The memo noted that losses in some cases were due to fraud and theft, and the DOJ recovered the proceeds of this criminal activity, including digital assets, through forfeitures.

However, it observed that the increase in the value of digital assets over the period was not reflected in the repayment to the victims, because regulations that require the return of forfeited assets to victims should be at their fair value at the time of the fraud. It said:

More:

https://www.msn.com/en-us/money/sav...S&cvid=62c718eaadff46fd8d90070d31352691&ei=17
 

Bitcoin RICO: Feds say $265 million crypto theft ring blew $13M on exotic cars, nightclubs​

  • Federal prosecutors in Washington, D.C., have charged 13 men in what court records describe as a wide-ranging conspiracy to identify victims with substantial holdings of cryptocurrency, steal those assets, and then launder the proceeds.
  • More than $265 million in crypto was stolen from the victims, according to a superseding indictment.
  • One of the defendants, Malone Lam, was previously charged in connection with the largest of those thefts, which netted about $245 million in crypto from a man in D.C.
Federal prosecutors in Washington, D.C., charged 13 men in what court records describe as a wide-ranging conspiracy to identify victims with substantial holdings of cryptocurrency, steal those assets, and then launder the proceeds.

More than $265 million in crypto was stolen from the victims, according to a superseding indictment obtained Thursday by CNBC.

The participants, Americans and foreign nationals who allegedly became friends on online gaming platforms, are accused of spending lavishly after the thefts, including $9 million on exotic cars and $4 million on nightclubs, as well as on multiple rental properties.

One of the defendants, 20-year-old Singapore native Malone Lam, was previously arrested and charged in connection with the largest of those thefts, which netted about $245 million in bitcoin from a man in D.C. in mid-August.

More:

https://www.msn.com/en-us/money/mar...S&cvid=a3e7555b342f4999972ef85638566b5b&ei=18
 
Iranian crypto exchange Nobitex suffered a $81.7 million hack on Tron, Bitcoin, Dogecoin, and EVM chains, marking one of the most significant security incidents of 2025. Blockchain investigator ZachXBT exposed the Nobitex hack and traced the stolen funds to provocative wallet addresses. This Tron crypto scam represents a major crypto exchange security breach that has left thousands of Iranian traders unable to access their funds right now.

The pro-Israel hacker group known as Gonjeshke Darande (Predatory Sparrow) has taken credit for the attack, and this adds a geopolitical dimension to what was initially seen as a purely financial crime.
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watcher.guru

Iranian Crypto Exchange Hacked for $81.7 Million By Pro-Israel Group

Iranian crypto exchange Nobitex hacked for $81.7M on Tron. ZachXBT uncovers exploit tied to vanity address in latest crypto security breach.
watcher.guru watcher.guru
 

Trump inaugural impersonators scammed donors out of crypto, feds say​

  • Scammers impersonating the Trump-Vance Inaugural Committee fraudulently stole hundreds of thousands of dollars in cryptocurrency, according to a complaint.
  • The perpetrators used phony email addresses made to look like they belonged to the inaugural committee to ” trick or coerce victims into providing them money,” according to the filing.
  • Of the stolen funds, the U.S. government is seeking to permanently seize nearly 40,400 USDT.
Scammers impersonating the President Donald Trump and Vice President JD Vance Inaugural Committee fraudulently stole hundreds of thousands of dollars in cryptocurrency, according to a new complaint filed by federal prosecutors.

The perpetrators used phony email addresses made to look like they belonged to the inaugural committee to ” trick or coerce victims into providing them money,” according to the civil complaint filed Wednesday in U.S. District Court in Washington, D.C.

More:

 

Pig butchering scam - Wikipedia

en.wikipedia.org en.wikipedia.org

WSJ

Millions Stolen, Death Threats: Should Banks Do More to Fight ‘Pig Butchering’?​

For nearly 50 years, Anamarie Hurt trusted her husband, Craig, to manage their finances. And he did a good job of it, making investments that grew into a comfortable nest egg.

Then Craig walked into a bank in Tulsa, Okla., and began moving their retirement funds into cryptocurrency investments that turned out to be fake. A year later, after losing more than $5 million, the Hurts’ life savings were gone.

At first, Anamarie’s anger was directed at Craig. But it soon found another target: the bank that she said helped him send wires as high as $300,000 at a time to scammers.

Now that investment scams, sometimes called pig butchering, are booming global operations, some Americans are demanding their banks and financial advisers do more to prevent the scams from happening. Pressure is also spreading to telecoms and social-media platforms such as Facebook, where scammers find their marks.

More:

https://www.msn.com/en-us/money/mar...t-pig-butchering/ar-AA1IV76s?ocid=socialshare
 
pmbug said:
More:

www.coindesk.com

New York Jury Finds Do Kwon, Terraform Labs Liable for Fraud in SEC Case

The SEC accused Kwon and his company of misleading investors about the stability of their so-called “algorithmic stablecoin” Terra USD.
www.coindesk.com www.coindesk.com

Another crypto Icarus like SBF. He tried flying too close to the sun.
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Update

Do Kwon pleads guilty to US fraud charges in $40 billion crypto collapse​


NEW YORK (Reuters) -Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion in 2022, pleaded guilty on Tuesday to two U.S. charges of conspiracy to defraud and wire fraud.

Kwon, 33, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, entered the plea at a court hearing in New York before U.S. District Judge Paul Engelmayer.

More:

https://www.msn.com/en-us/money/mar...-crypto-collapse/ar-AA1Kp3DW?ocid=socialshare
 

Investor loses 783 bitcoins in one transaction​

A cryptocurrency investor lost nearly $91 million worth of Bitcoin in a single transaction after falling victim to a sophisticated scam. The incident occurred on Tuesday, August 19, 2025, at 11:06 UTC, according to blockchain investigator ZachXBT.

The victim was tricked by fraudsters posing as customer support for a major crypto exchange and a hardware wallet provider. Believing the impostors were legitimate, the investor shared access credentials, enabling the scammers to drain 783 Bitcoin from the wallet within minutes.

ZachXBT revealed the theft on X Thursday, calling it one of the largest Bitcoin losses caused by a social engineering attack. Notably, the wallet address that first received the stolen funds appeared “clean,” showing no prior links to hacks or illicit activity—suggesting the attacker carefully planned the heist to avoid immediate detection.

More:

https://www.msn.com/en-us/money/mar...-one-transaction/ar-AA1L0pr4?ocid=socialshare
 

Chinese billionaire convicted over world’s largest crypto scam​

A Chinese fugitive has been convicted for attempting to launder £5.5bn from a house in Hampstead after running what is believed to be the world’s biggest cryptocurrency scam.

Zhimin Qian, 47, defrauded more than 128,000 victims in her home country in an investment scam between 2014 and 2017.

The Treasury wants to use her seized funds to help plug the hole in Britain’s public finances, but Chinese investors say the money belongs to them.

Qian was arrested by Scotland Yard in April last year after she fled China under the name of Yadi Zhang and used a fake St Kitts and Nevis passport to enter the UK in July 2017.

Her company, Lantian Gerui, sold investment products and promised returns of up to 300 per cent.

More:

https://www.msn.com/en-us/money/com...gest-crypto-scam/ar-AA1NxIml?ocid=socialshare
 

Dubai’s Billion-Dollar Crypto Underworld (Correct)​

Oct 6, 2025
(Corrects video originally published March 10 to remove mischaracterization of Dubai-based crypto entrepreneur.)
In early 2024, the US charged Sam Lee with running a Ponzi and pyramid scheme called HyperVerse, alleging he defrauded people of $2 billion. But instead of facing trial in the US, Lee now lives in Dubai, where he’s pitching new crypto products.
Lee denies any wrongdoing. But crypto industry experts alleged victims and online “scam hunters” are raising questions about whether regulators in the United Arab Emirates are doing enough to combat crypto fraud as Dubai seeks to position itself as a hub of finance and technology.
On a scorching July day in Dubai, Sam Lee was inside a climate-controlled wine bar, sipping a glass of chilled red, looking untouchable. Near the beginning of the year, US authorities announced that they’d charged Lee with conspiracy to commit securities fraud and wire fraud. They alleged that, as the co-founder of a company called HyperVerse, he’d orchestrated a cryptocurrency scam that bilked investors around the world for almost $2 billion. HyperVerse had promised returns as high as 1% a day via cutting-edge blockchain-based strategies, but according to the US Department of Justice and the Securities and Exchange Commission, it was just an old-fashioned Ponzi scheme. Lee has denied wrongdoing.


16:57

0:00 The two sides of Sam Lee
2:06 HyperVerse’s collapse
5:58 The Crypto Ponzi Scheme Avenge
9:10 Dubai’s crypto underworld
12:59 Detained in Dubai
 

A dark web drug trafficker was forced to forfeit nearly $25 million in Bitcoin after a Bucks County sale helped unravel his scheme​

Zhengcheng Huang’s scheme was relatively straightforward, federal prosecutors said: Using the moniker “Chinodrug” on the dark web, Huang made illegal shipments of oxycodone to buyers across the United States, and typically asked to be paid in Bitcoin, which made the digital transactions harder to trace.

But after Huang pleaded guilty earlier this year to conspiracy to distribute oxycodone, federal prosecutors in Philadelphia moved to seize his illicit proceeds — and that kicked off a unique legal battle.

The typical fine for a defendant found guilty of the crime to which Huang admitted ranges between $500,000 and $1 million, prosecutors and Huang’s lawyers agreed.

And had Huang been paid in cash for his drugs, his lawyers said, the shipments he would have been responsible for overseeing would have generated about $1.7 million.

But because buyers paid in Bitcoin, and because the currency has been skyrocketing in value in recent years, the nearly 200 Bitcoins found in Huang’s digital accounts are now worth almost $25 million.

Read the rest here:

https://www.msn.com/en-us/news/crim...ravel-his-scheme/ar-AA1OsINC?ocid=socialshare
 

Brothers Charged With Stealing $25M in Crypto In 12 Seconds​

Oct 16, 2025
Feds charged two brothers with stealing $25 million in cryptocurrency, but they say they simply outsmarted some bots and what they did was not illegal.


10:59
 

Melania Trump used as ‘window dressing’ in memecoin scam that caused millions in losses, lawsuit claims​

Two men behind a range of cryptocurrencies promoted by the likes of First Lady Melania Trump and Argentine President Javier Milei have been accused of engaging in fraud and exploiting “celebrity association and ‘borrowed fame’ to sell legitimacy to unsuspecting investors,” according to a new legal filing.

A federal class action lawsuit was first brought against Benjamin Chow and Hayden Davis, co-founders of the crypto exchange Meteora and the venture capital firm Kelsier Labs, respectively, in April this year, reports Wired.

More:

https://www.msn.com/en-us/news/othe...s-lawsuit-claims/ar-AA1OYBr8?ocid=socialshare
 

Unmasking China’s Cryptoqueen: Behind Britain’s biggest bitcoin seizure - BBC World Service Docs​

Nov 10, 2025 #BBCEye #China #Cryptoqueen
This is the story behind Britain's biggest ever seizure of cryptocurrency.
Between 2014 and 2017, thousands of ordinary Chinese people handed their money over to an investment company that promised them fabulous riches. That vision collapsed when the shadowy figure behind it, Qian Zhimin, fled to the UK with a Bitcoin stash bought with their money.
#BBCEye Investigations speaks to victims and the UK police to find out how the scheme worked, how Qian was caught and what will happen to the huge haul of Bitcoin seized from her.


13:31

00:00 Qian Zhimin: The Chinese cryptoqueen    
00:44 The scam that reached every province in China
03:22 Qian escapes China for the UK
06:32 A dream of becoming queen of Liberland
10:20 What will happen to the bitcoin worth billions of pounds?

en.wikipedia.org

Liberland - Wikipedia

en.wikipedia.org en.wikipedia.org
 

China Accuses US of Orchestrating $13 Billion Bitcoin Hack​


China’s cybersecurity agency accused the American government of orchestrating the theft of about $13 billion worth of Bitcoin, representing China’s most recent attempt to attribute major cyberattacks to the US.

The theft of the 127,272 Bitcoin tokens from the LuBian Bitcoin mining pool that took place in December 2020 ranks as one of the largest crypto heists in history. The hack is likely a “state-level hacker operation” led by the US, according to the Chinese National Computer Virus Emergency Response Center, which said the quiet and delayed movement of the stolen Bitcoin suggests a government-level action rather than typical criminal behavior.
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Federal prosecutors of the Chen case declined to comment on how or when they obtained control of the Bitcoin. The Department of Justice filed a related civil forfeiture complaint seizing the 127,271 Bitcoin, making it the largest forfeiture action by the US.
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If it was indeed hacked versus merely being compromised, that could cause BTC to implode.
 
None of this paints a good picture for Crypto-currency. It's all Hacking, Theft, Tracking, Forgotten passwords. Although, in that article I think they were calling the hacking in order to compromise the BTC somehow. Not the BTC algo.
 

Crypto millionaire 'fraudster' and his wife kidnapped and murdered in UAE​

A Russian cryptocurrency con artist and his wife were kidnapped and murdered overseas after a reported ransom demand went unmet.

Roman Novak and his wife Anna vanished in early October, sparking concern among family members who hadn't heard from them for several days. The couple was reportedly kidnapped by individuals demanding a ransom, but when the money wasn't delivered, they were killed in the United Arab Emirates, according to local media reports on Nov. 7.

More:

https://www.msn.com/en-us/news/crim...-murdered-in-uae/ar-AA1QuXA4?ocid=socialshare
 
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