According to TechFlow, the U.S. Homeland Security Investigations (HSI) New York Task Force said on August 5 that Las Vegas resident Michael Lauchlan was suspected of operating a fake crypto asset recovery business through the Coin Dispute Network (CDN).
Lauchlan claimed to provide blockchain analysis and cryptocurrency recovery services, but in reality retained client fees and obtained additional Ethereum through false promises.
The investigation revealed that more than 175 CDN customers were unable to recover any cryptocurrency, and about $14,000 in user funds were traced to the CoinEx exchange.
Lauchlan is currently facing charges of grand larceny and two counts of racketeering in Manhattan Criminal Court. This is the first time the Manhattan District Attorney’s Office has taken down a cryptocurrency recovery website.
