The FBI has arrested a New York resident, Idin Dalpour, for masterminding a complex Ponzi scheme that defrauded investors out of at least $43 million. The scheme involved deceptive investment opportunities in a Las Vegas hospitality business and a cryptocurrency trading operation, according to federal authorities.
Details of the Scheme and Arrest
On May 1, Damian Williams, the United States Attorney for the Southern District of New York, alongside James Smith, Assistant Director in Charge of the FBI's New York Field Office, announced charges against Dalpour. He is accused of luring investors with promises of high returns from investments in the hospitality sector and cryptocurrency markets. Investors were reportedly promised annual returns starting at 42%, with the safety of their investments purportedly guaranteed through insurance and escrow arrangements.
The Mechanics of the Fraud
Dalpour allegedly solicited investments through a controlled entity, falsely claiming successful operations in both the hospitality and cryptocurrency sectors. He is said to have misled investors about purchasing crypto at wholesale prices and selling it at a profit to retail buyers. To maintain the illusion of a legitimate business, Dalpour is accused of fabricating contracts, falsifying bank statements, and creating fictitious email correspondence.
Misuse of Investor Funds
According to the FBI, the investor funds were not used as promised but were instead diverted to pay returns to earlier investors, cover Dalpour's personal expenses—including substantial gambling losses—and pay for his children's private school tuition.
Confrontation and Confession
The scheme began to unravel in November 2023 when a group of victims confronted Dalpour. During this confrontation, Dalpour reportedly confessed to the fraudulent nature of his operations, stating, "What you already have, you have, you can put me in jail now. Like right now."
Broader Context of Crypto-Related Fraud
This arrest is part of a series of actions by U.S. officials targeting Ponzi schemes related to cryptocurrencies. Recent cases include the March 15 SEC bust of a $300 million Ponzi scheme operating under the guise of a crypto trading platform called CryptoFX, and the April 4 sentencing of Irina Dilkinska, former head of legal and compliance for the OneCoin fraud scheme, to four years in prison for money laundering.
James Smith of the FBI emphasized the agency's commitment to economic justice, stating, "Today’s arrest illustrates the FBI’s dedication to maintaining economic justice and ensuring the actions of one individual are not at the expense of others."
These ongoing efforts underscore the regulatory challenges and risks associated with investing in the burgeoning cryptocurrency market.
#crypto #fraud

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

The United States Securities and Exchange Commission (SEC) has filed for substantial financial penalties against Terraform Labs and its co-founder, Do Kwon, following a jury's verdict that found them liable for defrauding investors. The SEC's proposal, filed on April 19 in the U.S. District Court of New York, seeks approximately $4.7 billion in disgorgement and prejudgment interest, alongside $520 million in civil penalties. This request includes $520 million from Terraform and $100 million from Kwon.
Disagreements on the Magnitude of Penalties
The disparity between the penalties proposed by the SEC and those suggested by the defendants is stark. Terraform Labs has proposed a maximum civil penalty of $3.5 million, while Do Kwon has advocated for a significantly lower penalty of $800,000. These figures contrast sharply with the SEC's much larger demand, highlighting the ongoing debate over the appropriate consequences for their actions.
In addition to financial penalties, the SEC is pushing for stringent measures to prevent future misconduct. These include barring Do Kwon from serving as an officer or director of any company that issues securities and enforcing a conduct-based injunction on Terraform to ensure there is no repeat of the fraudulent activities. The SEC also seeks full disclosure of Kwon’s banking accounts and assets.
Background of Fraud Allegations
The legal actions stem from accusations that Terraform Labs and Do Kwon misled investors with false statements related to the marketing and sale of digital currencies such as TerraUSD (UST), Luna, and wLUNA. A jury on April 5 confirmed the SEC’s allegations, ruling that the company and its co-founder engaged in deceptive practices designed to mislead investors.
The SEC has emphasized the defendants' lack of remorse and the potential for future violations as critical factors in their demand for substantial penalties. The commission argues that a stern penalty is necessary to deter similar behavior in the future, especially as it pertains to setting precedents within the rapidly evolving cryptocurrency market.
Pending Judicial Review
The proposed financial remedies and additional sanctions are now awaiting judicial approval. In response to the jury's decision, a spokesperson for Terraform stated that the company is "carefully weighing its options and next steps." This case marks a significant development in the SEC's oversight of cryptocurrency practices, potentially setting a precedent for how similar cases are handled in the future.
#SEC #DoKwon #Terraform #fraud

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

According to a recent article in The New York Times, Sam "SBF" Bankman-Fried, the founder of the cryptocurrency exchange FTX, is providing investment advice to prison guards and suggesting investments in the cryptocurrency Solana.
SBF's legal representatives seek a lighter sentence
The legal team of former FTX chief, Sam "SBF" Bankman-Fried, filed a motion in the Federal District Court in Manhattan requesting a sentence ranging from five and a quarter years to six and a half years. Following charges of multiple offenses including fraud and money laundering, which could have led SBF to face up to 110 years in prison, this request emerges as a response to last year's jury verdict.
Details of the charges and expected sentence
SBF faces charges of various financial crimes, including wire fraud, conspiracy to commit securities fraud, and money laundering. The sentence for SBF is scheduled to be handed down by Judge Lewis A. Kaplan on March 28, while federal prosecutors are expected to submit their sentencing recommendation by March 15. A preliminary investigation report suggested a sentence of 100 years.
Defense arguments for a reduced sentence
SBF's lawyers have labeled the proposed century-long sentence as "barbaric," pointing out that SBF is a first-time offender with no prior criminal record and that four co-defendants have confessed to the crimes. Furthermore, they argued that the damages to clients, creditors, and investors are zero, as the bankruptcy process of FTX is expected to enable full reimbursement to clients for their losses.
SBF's life in prison and his advice to prison guards
Since his imprisonment at the Metropolitan Detention Center in Brooklyn last summer, several stories about SBF have emerged from prison, including his offering of trading and investment advice to prison guards, recommending investment in the cryptocurrency Solana. This activity follows the collapse of FTX, one of the largest crypto exchanges, which was valued at $32 billion in January 2022 before collapsing in November of the same year due to mismanagement and fraud involving $8 billion of customer funds.
$SOL
#Solana #SBF #fraud

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

 

Federal indictment does not name FTX or Sam Bankman-Fried as the victimized company, but Bloomberg reports it was indeed them.

The United States federal government has on Wednesday issued charges against three individuals allegedly involved in a long-standing hacking scheme culminating in the infamous theft of $400 million from FTX, a #cryptocurrency exchange owned by Sam Bankman-Fried, which subsequently collapsed.
In an 18-page indictment filed in a federal court in Washington, prosecutors have accused Robert Powell, Carter Rohn, and Emily Hernandez of conspiring to commit wire fraud and identity theft in the operation of a SIM card swap ring targeting fifty victims from March 2021 to April 2023.
Their most significant heist took place on November 11, 2022, when the trio siphoned off $400 million from an unidentified company. Bloomberg, citing sources familiar with the matter, claims that the company in question was FTX.
Through AT&T networks, they gained access to the cryptocurrency exchange's employees and transferred cryptocurrencies worth hundreds of millions of dollars.
This indictment may finally provide an answer to one of the most significant questions surrounding the FTX scandal: Where did the hundreds of millions of dollars in cryptocurrencies disappear to during the darkest hour of the exchange, right after it filed for bankruptcy protection.
#crypto #fraud

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

voted yes!!! huge!!!!

ITEM 1: Prohibition Against Fraud, Manipulation, or Deception in Connection with Security-Based Swaps; Prohibition against Undue Influence over Chief Compliance Officers

The Commission will consider whether to adopt rules under the Securities Exchange Act of 1934 (“Exchange Act”) that are designed to prevent fraud, manipulation, and deception in connection with transactions in security-based swaps as well as to prevent the personnel of a security-based swap dealer or major security-based swap participant from taking actions to coerce, mislead, or otherwise interfere with such entity’s chief compliance officer. 

of course hester voted no.. she even admitted she was on the hill in 2010 to stop Dodd Frank.. unbelievable.

about to vote...

ITEM 2: Removal of References to Credit Ratings from Regulation M

The Commission will consider whether to adopt rule amendments to Regulation M under the Exchange Act that remove certain existing rule exceptions that reference credit ratings and substitute in their place new exceptions that are based on alternative standards of creditworthiness.

#SEC #solana #fraud #crypto2023

In the world of cryptocurrency, the decentralized exchange SushiSwap has recently suffered a significant loss of $3.3 million due to an exploit in the allocation of its tokens. This incident has prompted the exchange to advise its users to revoke their token allowances to prevent further losses.

SushiSwap is a decentralized exchange platform that allows users to trade cryptocurrencies in a decentralized manner. One of its unique features is the ability to earn rewards by staking or providing liquidity to the platform. This incentivizes users to hold and use the platform's native token, SUSHI.

However, on April 4th, an unknown attacker was able to exploit a vulnerability in the SushiSwap platform's token allocation mechanism. The attacker was able to drain $3.3 million worth of SUSHI tokens from the exchange's liquidity pools.

The exploit was carried out by manipulating the platform's token allocation function, allowing the attacker to steal the funds without being detected. This type of exploit, known as a "flash loan attack," is becoming increasingly common in the cryptocurrency world.

Following the incident, SushiSwap quickly took action by urging its users to revoke their token allowances. This means that users can prevent their tokens from being used in any future attacks by revoking access to the exchange's liquidity pools.

SushiSwap also announced that it would be taking steps to prevent similar incidents from occurring in the future. The exchange has deployed additional security measures, including an audit of its codebase and the implementation of a new governance system to improve transparency and accountability.

Despite the incident, SushiSwap's community remains optimistic about the platform's future. Many users have expressed their support for the exchange and its efforts to address the issue. The platform has also seen a surge in activity, with its daily trading volume reaching an all-time high of $2.5 billion just a day after the attack.

In conclusion, the exploit in the allocation of SushiSwap tokens highlights the importance of robust security measures in the cryptocurrency world. SushiSwap's quick response to the incident and its commitment to improving its security measures demonstrate the resilience of the cryptocurrency community in the face of such challenges. As the cryptocurrency world continues to evolve, it is essential for exchanges and platforms to remain vigilant and proactive in safeguarding their users' assets.

#sushiswap #exploit #hackers #fraud #cybersecurity

The Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, recently highlighted the increasing number of frauds in the cryptocurrency space, which is linked to the historic surge in the price of Bitcoin. Gensler emphasized the risks associated with unethical practices in the crypto world and pointed out the volatile nature of Bitcoin, which can attract speculative investors.
Gensler pointed out the issues in the broader context of the crypto industry, including the dangers arising from inadequate information provided by digital asset intermediaries, which could jeopardize investors.
Year 2023: Record Year for Cryptocurrency Frauds
According to analysis by Chainalysis, frauds became a key factor in cryptocurrency-related crime in 2023, with generated revenues exceeding $4.6 billion. The FBI's report on internet crime shows that there was an increase in losses from crypto investment frauds in the USA to $3.94 billion, representing a 53% increase from the previous year. Investment frauds became the most common type of internet crime in 2023.

Reasons for the Increase in Frauds
The rise in frauds is linked to increasing interest in high-yield investment opportunities during strong market sentiment. Chainalysis research suggests that frauds generate smaller revenues during downturns in the crypto market.

Most Common Types of Fraudulent Schemes
The BBB's 2023 fraud report revealed that scammers come up with innovative methods to deceive investors, with approximately 80% of Americans targeted by crypto and investment frauds in 2022 experiencing financial losses. A significant increase was noted in cases of romance scams, which increased 85 times since 2020.

Pump and dump schemes are unpredictable and utilize new tokens to artificially inflate their prices, enabling fraudsters to make money when prices are at their peak. According to Chainalysis, only a small percentage of the more than 370,000 tokens launched on Ethereum in 2023 achieved significant liquidity.

How to Protect Oneself
The key to protecting oneself from frauds is to be vigilant and informed about potential risks. A proactive approach and caution in trading cryptocurrencies can help minimize the possibility of falling victim to frauds.
Conclusion
The risk of frauds is high in the cryptocurrency world, especially at a time when the market is constantly evolving and attracting new investors. It is important to be aware of potential dangers and take measures to protect your investments.
#crypto #fraud

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

A new report issued by debtors of the cryptocurrency exchange FTX has shed light on the reasons behind the company's downfall. The report suggests that FTX's failure was caused by a combination of hubris and greed, which ultimately led to the exchange's demise.

The report, which was compiled by a group of FTX's former clients, highlights several key factors that contributed to the exchange's downfall. One of the main issues identified in the report was FTX's aggressive expansion strategy, which saw the exchange launch several new products and services in a short period of time.

According to the report, FTX's expansion was driven by a desire for rapid growth and a belief that the company could outpace its competitors. However, this approach proved to be unsustainable, and FTX's resources were stretched thin, leading to a decline in the quality of its services and a loss of customer confidence.

The report also suggests that FTX's leadership was driven by hubris, which led to poor decision-making and a failure to listen to feedback from clients and stakeholders. This was particularly evident in FTX's approach to risk management, which the report describes as "reckless" and "overly optimistic."

Finally, the report suggests that FTX's downfall was also driven by greed. According to the report, the exchange's management team was primarily focused on maximizing profits, often at the expense of the company's long-term sustainability. This approach led to a lack of investment in essential infrastructure and risk management systems, ultimately contributing to the exchange's downfall.

The report's findings raise important questions about the cryptocurrency industry's overall approach to risk management and sustainability. As the industry continues to grow and evolve, it is essential that companies prioritize the long-term health of their businesses, rather than simply chasing short-term profits.

In response to the report, FTX has stated that it is committed to addressing the issues raised by its former clients and improving the quality of its services. The exchange has already taken several steps to improve its risk management systems and has announced plans to focus more on the long-term sustainability of its business.

Overall, the report's findings highlight the need for a more thoughtful and measured approach to cryptocurrency trading and investment. As the industry continues to mature, it will be essential for companies to prioritize the long-term health of their businesses, rather than simply chasing short-term gains.

#ftxcollapse #ftx #crypto #investors #fraud

Because of the popularity of cryptocurrencies, many people are looking for ways to get free cryptocurrencies. Here are few ways to earn #cryptocurrencies without investing your own money, including crypto faucets, #airdrops, #staking and bug bounties.

 There are some common risks to consider when earning free cryptocurrency, including security risks and #fraud , limited revenue opportunities, time-consuming activities, and potential legal or tax implications. It is important to do research and approach these methods with caution

FAUCETS

A crypto faucet is a website or application that offers small amounts of cryptocurrency when users solve CAPTCHA puzzles or watch advertisements. An example is Moon Litecoin, which offers free Litecoin

LTC.For users completing tasks such as streaming videos. Moon Litecoin rewards will be credited to Coinpot.co users' microwallets.

Unfortunately, there are many rogue cryptocurrencyfaucets that promise great rewards but do not actually pay off. Some require you to pay a fee or complete a certain number of tasks before you can withdraw your earnings, while others simply disappear without warning. Therefore, it is important to treat cryptofaucets with caution and do thorough research before using them

AIRDROPS

An airdrop is a free distribution of cryptocurrencytokens or coins. Companies and projects distribute a certain number of tokens to people who have registered on the platform, performed certain actions, or met certain requirements

STAKING

Staking is holding a certain number of cryptocurrencytokens in a wallet or exchange to secure the network and earn rewards. Can use cryptocurrencies such as Cardano

Earn staking rewards using ADA, Polkadot DOT and Ethereuem ETH.

However, staking means that funds are locked for a period of time during which they cannot be accessed or traded. So make sure you understand the risks and potential benefits before you start staking.

REFERAL PROGRAMS

Many cryptocurrency exchanges and wallets offer referral programs that pay rewards for consumers who invite friends and family to join their platform. Can be rewarded with free cryptocurrency or a portion of the user's transaction fees. For example #Binance offers this program, when you refer your friends or family, upon completing certain task you get certain amount in BUSDs.

SURVEYS

There are many websites and apps offer users the opportunity to earn cryptocurrency rewards by completing simple surveys or participating in market research. Sites like Swagbucks offer cryptocurrencyrewards for completing tasks such as watching videos, answering surveys, and playing games. However, you should exercise caution when conducting activities on such websites.

BUG BOUNTIES

If you are a developer, this is for you. Crypto projects and exchanges often offer bug bounties to motivate developers and security researchers to identify and report vulnerabilities in their software. These rewards come in the form of cryptocurrency rewards and range from hundreds to tens of thousands of dollars depending on the severity of the bug.

So they are various ways through them you can earn #crypto2023 with 0 investment.

Stay tuned for upcoming articles which will describe about trading strategies and ways to invest and find good projects. #dyor

#BinanceFeed