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Crime 3 charged with running $722M cryptocurrency scam

05:05  11 december  2019
05:05  11 december  2019 Source:   msn.com

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  A US citizen is accused of trying to help North Korea evade sanctions A US computer researcher appeared in federal court in Los Angeles on Monday, accused of advising North Korea how to use cryptocurrency to avoid sanctions, according to the United States Attorney's Office.A US computer researcher appeared in federal court in Los Angeles on Monday, accused of advising North Korea how to use cryptocurrency to avoid sanctions, according to the United States Attorney's Office.

US authorities arrested three men in an alleged fraud that raised $ 722 million from investors lured by fake bitcoin mining earnings, the Justice Department announced Tuesday. Prosecutors described the scam as a "high-tech Ponzi scheme" run by the "BitClub Network," which took money from investors

New Jersey authorities announce the arrest of three founders of alleged $ 722 million crypto Ponzi Abel, who was apparently less central to the scheme, has only been charged with conspiracy to offer and Arguably the most famous crypto exit scam in history, the case of OneCoin has seen notable

NEWARK (AP) — Three men were charged with running a cryptocurrency mining operation that officials labeled a “high-tech Ponzi scheme" that bilked investors out of $722 million, federal officials announced Tuesday.

Matthew Goettsche, 37, was arrested Tuesday in Colorado, while Jobadiah Weeks, 38, was taken into custody in Florida and Joseph Abel, 49, was arrested in California, according to the U.S. attorney's office.

It wasn't immediately clear whether they had attorneys who could speak for them.

According to federal prosecutors, the men ran a business called BitClub Network from April 2014 through this month that promised earnings to investors who bought shares in its supposed cyrptocurrency mining pool.

A US citizen is accused of trying to help North Korea evade sanctions

  A US citizen is accused of trying to help North Korea evade sanctions Seattle Seahawks wide receiver David Moore talks the Seahawks TD celebration on his TD.

Three men were charged with helping run a $ 722 million cryptocurrency fraud that amounted to a “high-tech Ponzi scheme,” U.S. Attorney Craig Carpenito in New Jersey said in a statement. Prosecutors said that from 2014 until this month, the defendants operated BitClub Network, which

NEWARK, N.J. – Three men were arrested today in connection with a cryptocurrency mining scheme that defrauded investors of $ 722 million, U.S All three are scheduled to have their initial appearances in the districts of their arrests. Two defendants remain at large and their identities remain under seal.

Mining involves using computers to solve mathematical problems in order to record virtual currency transactions. Miners receive cryptocurrency for their work.

But the earnings reported by the network were false, authorities contend.

The operation also rewarded investors for recruiting new investors, according to prosecutors.

“Goettsche discussed with his conspirators that their target audience would be ‘dumb' investors, referred to them as ‘sheep,' and said he was ‘building this whole model on the backs of idiots,'” a statement from the U.S. attorney's office said.

In 2015, Goettsche told another conspirator to increase the daily earnings by 60% and was told it was unsustainable and “Ponzi territory,” the office said. A Ponzi scheme involves paying early investors with money obtained from later investors rather than from actual profits.

For bitcoin, boring is the new normal

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The scammers are also charged with defrauding citizens of neighbouring China. Their Ponzi scheme promised returns of up to 355 percent after just one year of Bitcoin It’s hard to say whether these scams are becoming more prevalent or cops are just getting better at catching those behind the fraud.

Crater was one of three separate cryptocurrency operators the CFTC charged last year with fraud and misappropriation, alleging that they also ‎had broken other commodity trading rules. The suspects were charged as part of an extensive investigation into different cryptocurrency investment schemes.

Goettsche and the others obtained the equivalent of at least $722 million from investors around the world and spent it on lavish lifestyles, authorities alleged.

They also conspired to sell shares that weren't registered with the U.S. Securities and Exchange Commission, according to prosecutors.

“The indictment describes the defendants’ use of the complex world of cryptocurrency to take advantage of unsuspecting investors,” U.S. Attorney Craig Carpenito said in a statement. “What they allegedly did amounts to little more than a modern, high-tech Ponzi scheme that defrauded victims of hundreds of millions of dollars."

Goettsche, of Lafayette, Colorado, Weeks, of Avada, Colorado, and Abel, of Camarillo, California, were indicted in New Jersey on conspiracy to offer and sell unregistered securities. Goettsche and Weeks also were charged with conspiracy to commit wire fraud.

If convicted, they could face up to five years in federal prison on the securities conspiracy charge and up to 20 years on the fraud conspiracy charge.

Two other people also were indicted but they haven't been arrested and their names haven't been released, the U.S. attorney's office said.

Man Convicted of Swindling $3 Million Through Online Romances .
A jury in Kansas City has convicted Henry Asomani of facilitating a wire fraud scheme in which he aided a group of co-conspirators in bilking lonely people out of their money using a variety of scams. The United States Attorney's Office in the Western District of Missouri issued a release summarizing the case.© Alexandria Sheriff's Office Henry Asomani mugshot Asomani, a naturalized American citizen who was born in Ghana, served as the middleman in the operation. His cohorts would connect with single people on dating services and gain their trust before convincing them to invest in a variety of fraudulent business opportunities.

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