PANews reported on August 7 that according to Bitcoin.com, the U.S. Homeland Security Investigations (HSI) announced that Michael Lauchlan was arrested and charged with defrauding customers of Ethereum (ETH) for operating a fake cryptocurrency recovery service company, Coin Dispute Network (CDN). Lauchlan claimed to be able to recover lost cryptocurrency, but actually took the fees and additional Ethereum for himself. He used false blockchain tracking reports to support his fraud, causing customers to lose thousands of dollars. Lauchlan was arrested in Las Vegas, and the investigation found that about $14,000 in cryptocurrency was transferred to Coinex.