SEC Charges Brothers in $60M Crypto Ponzi Scheme
The Adam brothers allegedly diverted investor funds into personal projects, mostly using them to fund their luxury lifestyle.
Former Chinese Tycoon Sentenced to Six Years for $5M Crypto Fraud in Singapore
Yang’s entire business turned out to be nothing more than a front for a scam.
Google Lawsuit Says Platform Took 3 Months to Remove Crypto Scam App
Google’s reputation continues to hang in the balance with the rising cases of crypto scam apps on its app store.
Hackers use Metallica’s Account to Promote Shady Crypto Token METAL
The incident has once again shown the need for crypto enthusiasts to always exercise patience and conduct thorough research before investing in any cryptocurrency.
Meta Platforms Suffers Blow in Crypto Scam Ad Lawsuit: Billionaire Can Pursue Claims
The judge ruled that Meta has failed to “prove beyond reasonable doubt” that Section 230 applied in this particular case.
Former Investment Banker Gets 41-Month Prison Term for Crypto-Related Crime
By the account of the Department of Justice (DoJ), Russell ran the fraudulent R3 Crypto Fund for nearly two years.
Pump Fun Hacker Arrested in London, Shares Shocking Revelations About the Platform
Dunn’s claims remain largely unverified, yet they highlight the complexities that surround cryptocurrency exploits.
Feds Crack $73 Million Crypto Heist, Nab Two Masterminds
United States authorities have arrested two individuals in connection with a crypto heist that saw over $73 million siphoned. The duo, of Chinese extract, allegedly masterminded the scheme and funnelled the stolen funds through financial institutions in the U.S. before finally converting into Tether USDT. According to a recent announcement by the Department of Justice (DoJ), one Daren Li (41 years) and 3-years younger Yicheng Zhang are now in police custody and have been charged. Meanwhile, an indictment had already been submitted at a California court on Thursday, which details the roles that the duo played in the scheme. Per the announcement, Li and Zhang ran an international criminal ring that laundered millions from ‘pig butchering’ crypto scams. For clarity, pig butchering is a kind of crypto scam where fraudsters take their time to gain the trust of potential victims. After this, they then convince them to invest huge sums before making off with the same. $73 Million Crypto Heist Masterminds Arrested Prosecutors claim that the defendants had conspired with other ring members to open U.S. bank accounts in the name of shell companies. That was before convincing anyone to invest. The scammers then waited for the right time to ask their victims to transfer millions of dollars into these U.S. bank accounts from where they laundered the ill-gotten funds. The DoJ also claims that the bad actors dispersed the stolen funds to various domestic and international bank accounts. A statement from the Justice Department reads partly: “The fraud scheme involved more than $73 million laundered through U.S. financial institutions to bank accounts in the Bahamas and converted to the virtual asset USDT, or Tether.” Li and Zhang are faced with charges of conspiring to launder money and six counts of international money laundering. If found guilty, they could be seeing a maximum sentence of 20 years imprisonment for each of those charges. This means that they could each be looking at prison terms of around 140 years behind bars. Growing Menace of Pig Butchering Scams Pig butchering scams are getting increasingly popular as online criminals have recently turned to it for their lucrative tendencies. In November 2023, a similar scheme occurred that took advantage of over 70 United States citizens. The U.S. Justice Department did seize $9 million from the scheme at the time. However, the alarming rate at which similar cases are springing up is now a cause of concern for lawmakers and regulators. It might also be noteworthy that regulators and global authorities have been working tirelessly to protect investors and sanitize the crypto space. While regulators are proposing new rules that meet up with the reality of today’s digital asset space, authorities are also effecting arrests, even as the judiciary continues to pass sentences to those found on the wrong side of the law. Hopefully, these concerted efforts will serve as a warning to other bad actors that illicit acts will not be tolerated in the crypro space.
Crypto Con Artist Pleads Guilty to Creating Fake Coinbase Website, Awaits Sentencing
Court documents also reveal that Tomar and his co-conspirators enjoyed the business until they made a mistake.
Hedgey Finance Loses Over $44M in Fresh Hack
In two hours, a token infrastructure platform Hedgey Finance has lost at least $44.7 million worth of digital assets to a security breach. According to an April 19 X post by blockchain security firm Cyvers, the attack happened across two networks; the Ethereum layer 2 Arbitrum (ARB) and Binance Smart Chain. For the first attack, the malicious attacker took advantage of the Hedgey Token Claim Contract by using a flash loan technique to steal $1.9 million worth of crypto. The unidentified hacker quickly swapped the stolen funds to the DAI stablecoin and then transferred to an external address, according to Cyvers. Shortly after, they repeated the same exploit on the Arbitrum chain, making away with $42.8 million in the process. Hedgey Finance Responds After Cyvers had raised the alarm, Hedgey later confirmed the incident in an X post from the firm’s official account. The post reads partly: “We are actively working with our auditors and team to understand the attack and stop any ongoing attack. We will share more information as we learn more.” Despite Hedgey’s response, numerous scam accounts impersonating Hedgey Finance have suddenly sprung up on X. They are attempting to defraud unsuspecting users into thinking that they are the real deal while asking users to request funds through malicious links. Notably, the hack took place only a few hours before the widely-anticipated Bitcoin halving, which is set to slash block rewards by half. Crypto Thefts Still Thriving Meanwhile, on-chain security firm CertiK has noted that crypto thefts are still very much rampant. In its Hack3d report, the firm confirmed that at least 223 crypto hacks happened in the first quarter (Q1) of 2024. Those hacks also resulted in the loss of over $502 million worth, per CertiK. In comparison, Q1 2024 saw a 54% rise in the total amount lost to crypto theft, considering that only $326 million was reportedly lost in Q1 2023. The report also noted that January was the most active month for the hackers who stole over $193 million worth of crypto in that month alone. Interestingly, there might be just one positive to the hack report. More than $77.9 million worth of stolen funds were ultimately recovered in Q1 2024.