Founder and Executives of Collapsed Turkish Crypto Exchange Thodex Sentenced to Over 11,000 Years in Prison
Faruk Fatih Özer, along with his sister and brother, have been sentenced to over 11,000 years in prison and a fine of $5 million for their involvement in the collapse of Thodex, one of Turkey's largest crypto exchanges. The exchange suddenly went offline in April 2021, leaving over 400,000 members without access to $2 billion in cryptocurrencies.
FTX Founder's Proposed Witnesses Disqualified, DOJ Seeks to Discount Expert Witnesses in Fraud Trial
Prosecutors are seeking to disqualify all of the proposed witnesses for FTX founder Sam Bankman-Fried due to issues with their disclosures, experience, or testimony. Bankman-Fried's team is also seeking to exclude a financial analysis expert proposed by the Department of Justice.
The Hong Kong Police Smashed a Triad Criminal Group, Involving More Than 100 Million Yuan in Cryptocurrency Laundering
Hong Kong police have arrested 11 people in the past few days for money laundering and fraud. They have used at least 52 bank accounts to launder criminal proceeds in the past six months, involving more than HKD 124 million. They have successfully dismantled a criminal group controlled by the triad.
Bitsonic CEO Arrested and Indicted for Inflating Coin Prices Through False Trades
The CEO of Bitsonic, a virtual currency exchange, has been arrested and charged with fraud, forgery, and other crimes related to allegedly inflating the market price and trading volume of its own issued currency and stealing customer deposits. The Seoul Eastern District Prosecutors' Office Cyber Crime Investigation Department (led by Prosecutor Lee Hee-chan) announced on the 8th that they have arrested and charged Bitsonic's CEO, Shin Woo, with specific economic crimes punishable by law.
SEC Freezes Assets of Crypto Mining Firm Involved in $50M Fraud Scheme
The U.S. Securities and Exchange Commission has taken emergency action against Digital Licensing Inc., a crypto mining firm accused of fraud. The SEC has frozen the company's assets and obtained a restraining order against it, as well as taking action against its four principals and 13 other defendants. The regulator alleges that the defendants raised $50m and unspecified amounts of Bitcoin and Ethereum through a fraudulent scheme, misappropriating the funds to buy luxury items and taking lavish vacations. The SEC has charged a total of 18 defendants for selling unregistered securities offerings and seeks permanent injunctive relief, the return of alleged ill-gotten gains, and civil penalties.
The U.S. Department of Justice (DOJ) ponders fraud charges against Binance, the world's biggest cryptocurrency exchange
The US Department of Justice (DOJ) is considering fraud charges against Binance, the world's largest cryptocurrency exchange. There are concerns about potential consumer fallout and market instability if an indictment is made, similar to what happened with platform FTX. The DOJ is exploring alternatives such as fines or non-prosecution agreements. This situation highlights the complex nature of crypto enforcement and regulation in the US, which currently exists in a legal gray area. Binance and its founder have already faced charges from the SEC and CFTC for operating an unregistered exchange and manipulating trades.
SEC Chair Raises Concerns About Fraud and Manipulation in Crypto Industry Amid Pending Bitcoin ETF Applications
Gary Gensler, the Chair of the Securities and Exchange Commission, expressed doubts about the crypto market and raised concerns about fraud and manipulation when asked about pending applications for spot bitcoin exchange-traded fund applications. Gensler stated that there is a lot of noncompliance in the crypto industry and that the platforms where trading occurs are not necessarily compliant with time-tested protections against fraud and manipulation.
Former FTX CEO Sam Bankman-Fried Issued Gag Order by Federal Judge in Media Leak Case
Former FTX CEO Sam Bankman-Fried has been issued with a gag order by a federal judge, preventing him from speaking publicly about his case to the media. The order does not apply to "assertions of innocence". Bankman-Fried is accused by the US Department of Justice of leaking the private diary of a former colleague to the media. Prosecutors are seeking jail time for Bankman-Fried, who faces over 100 years in prison if convicted of fraud and other charges.
CFTC Files Complaint Against Tennessee Couple for Multi-Million Dollar Commodity Pool Scheme Defrauding Over 100 Individuals
The Commodity Futures Trading Commission (CFTC) has filed a complaint against Michael and Amanda Griffis, residents of Clarksville, Tennessee, for allegedly defrauding over 100 individuals throughout the United States. The couple is accused of running a multi-million dollar commodity pool scheme called "Blessings of God Thru Crypto" from July 2022 to January 2023, promising high returns and minimized risks.
South Korean Crypto Finance Company Delio Will Suspend Some Services and Stop Paying Interest on Virtual Assets
South Korean encrypted financial company Delio announced that it will suspend some services and stop paying interest on virtual assets. During the July 18 seizure, all assets owned by the client and the company were confiscated by prosecutors, Delio said.
