United States: No Mercy for Cryptocurrency Fraud?

American Justice will no longer want to let crypto crime and fraud go unpunished. Four dubious ICO projects, blanket pull NFT and Ponzi scheme led to him indicting up to 6 people lately.

4 cases of crypto fraud

According to US DOJ officials:

These cases are a crucial reminder that some scammers hide behind sweet talk, but in the end they are just trying to take people’s money.

Even local elected officials like Kevin Thomas disagree. This prompted the DOJ to address the following cases:

1- Baller Ape Club

Initiated by a Vietnamese named Anh Tuan, the Baller Ape Club collection is said to be pure conspiracy behind which a cryto-fraud hides. This project may be related to an international money laundering attempt.

The DOJ accuses Tuan of conducting a ” blanket pull NFT by disintegrating his project’s website after filling their briefcases with investor money. The total amount stolen is $2.6 million.

The 26-year-old and his cronies face up to 40 years in prison if convicted.

2- EmpiresX

EmpiresX would be a ” worldwide Ponzi scheme based on cryptocurrencies A federal grand jury in South Florida has indicted 3 people behind this cryptocurrency fraud: Emerson Pires, David Nicholas and Flavio Gonclaves.

At the origin of their charge; securities fraud activity that raised $100 million. There is also the fact that they laundered investors’ money through a foreign crypto exchange. Occasionally they paid the last investors with the money of the first victims. Moreover, the proprietary trading bot “EX BOT” which they praised was only fictitious.

3- Titanium Blockchain Infrastructure

It is about a First Coin Offer (ICO) that enabled the sale of tokens and the accumulation of $21 million in revenue initiated by Michael Stollery, CEO and founder of the company. The US Department of Justice believes that white paper has been tampered with. In addition, highlighting false testimonials on the Titanium website to lure investors.


[Ils ont] made up alleged business relationships [avec des entreprises comme Apple, Pfizer et The Walt Disney Company] to create a minimum of legitimacy

Unfortunately, this dodgy ICO has the Security Exchange Commission† On May 22, 2018, a complaint was filed against the initiators.

4- Circle Society

David Saffron, founder of this company, is said to have asked investors to participate in an unregistered commodities pool. To convince them, he had to:

  • using a trading robot to achieve cryptocurrency fraud;
  • allow investors to trade their money for profit with the support of the same robot;
  • dream with returns of up to 500% and 600%.

To entice investors, Saffron allegedly held investor meetings at luxury homes in the Hollywood Hills, and in fact traveled with a team of armed guards to create a false semblance of wealth and success. says the DOJ.

This allowed him to collect the sum of 12 million dollars, and unfortunately 115 years in prison. Toughest Penalty for Cryptocurrency Fraud in History?

Anyway, if the crypto queen Ruja Ignatova gets caught, she gets a much tougher sentence than Saffron. Knowing that she hit and run and stole over $4 billion from investors on ApeCoin. Didn’t she just get on the list of people”most wanted from the FBI?

Otherwise, the victims of these crypto frauds are currently being invited to come forward to learn more about their rights. But given the cases mentioned above, it is better to double vigilance. Because there is no shortage of talkers and masquerade specialists in the world of cryptocurrencies.

Source: CoinMarketCap; TCPalm

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