FTX Report Reveals Use of Customer Funds for Political Donations and Venture Capital Investments, CEO Implicated in Fraud Conspiracy
June 27 (Cointime) - The FTX restructuring team, led by John J. Ray III, has released their second report which alleges that FTX executives were aware of missing customer funds as early as August 2022. The report also claims that FTX CEO Sam Bankman-Fried was involved in the fraud and that customer funds were used for political donations and venture capital investments.
Hedge Fund Arm of Bankrupt FTX Empire Seeks Return of $700M Paid for Access to Celebrities and Politicians
June 23 (Cointime) - Alameda Research, the hedge fund division of FTX, which filed for bankruptcy in November, is seeking the return of $700 million that founder Sam Bankman-Fried allegedly paid to "super networkers" Michael Kives and Bryan Baum for access to celebrities and politicians.
CFTC Charges California Man for Running Romance Scam That Swindled Crypto Investors Out of $1.3 Million
June 23 (Cointime) - The Commodity Futures Trading Commission (CFTC) has taken legal action against a California man and his company for allegedly running a romance scam that defrauded at least 29 investors out of over $1.3 million in digital asset commodity and forex trading between April 2021 and March 2022.
Two Men Charged in Sydney Cryptocurrency Scam, Millions in Luxury Cars and Watches Seized
June 22 (Cointime) - Two men have been charged in Sydney after allegedly defrauding two companies of more than $5.5 million since 2021. Police raided a warehouse and seized six luxury cars, 11 motorcycles, seven designer watches, cryptocurrency wallets, nun chucks, and relevant documents.
Haru Invest CEO Hugo Lee Apologizes for Delayed Response to Recent Incident
June 21 (Cointime) - In a letter addressed to Haru Invest members, CEO Hugo Lee apologized for causing concerns in the wake of a recent incident and for the delayed explanation of the situation. Lee stated that the company's focus was initially on assessing the scale of damage and developing recovery plans.
Haru Invest and Delio Investors Prepare for Class Action Lawsuits Over Frozen Crypto Worth Billions
June 16 (Cointime) - Haru Invest and Delio, two South Korean crypto firms, have suspended customer deposits and withdrawals, leading to over 400 investors of Haru Invest and 150 investors of Delio preparing for class-action lawsuits. The investors are likely to sue the crypto platforms for charges including fraud. Haru Invest has filed a criminal lawsuit against its consignment operator B&S Holdings, while Delio has reportedly deposited a certain amount of crypto assets in Haru Invest. There are also concerns that Haru Invest may have exposure to beleaguered crypto exchange FTX.
Chinese Police Warn of Increase in Digital Yuan Scams as CBDC Rollout Accelerates
Chinese police have issued a warning about an increase in scams related to the digital yuan, as the country's central bank digital currency (CBDC) is being rolled out. According to state-run news outlet CCTV, police in Shandong Province have reported a rise in digital yuan-themed fraud, with one recent scam having ensnared tens of thousands of people.
John Reed Stark, Former Director of the SEC Internet Enforcement Office: The US Department of Justice Will File or Has Filed Criminal Charges Related to Binance
John Reed Stark, former director of the U.S. Securities and Exchange Commission’s (SEC) Office of Internet Enforcement, tweeted that he believes the U.S. Department of Justice will or has filed a sealed criminal indictment related to Binance. The CFTC and SEC complaints, which are more like criminal indictments, include allegations of fraud, deception, obstruction of justice, and money laundering.
Binance and CEO File Rebuttal Against SEC’s Request for Restraining Order
Binance and its CEO Changpeng Zhao have filed a rebuttal against the SEC's request for a temporary restraining order that would freeze the assets of Binance.US. The filing argues that the SEC's motion should be denied, as there is no risk to BAM's customer assets and no emergency.
Former SEC Official Predicts Possible Criminal Indictment Against Binance for Money Laundering
Former SEC official John Reed Stark has suggested that Binance, a cryptocurrency exchange, may face criminal charges for alleged money laundering, fraud, deception, and obstruction of justice. The charges could be related to disguising financial assets to avoid detection of illegal activity.
