The president and head of Crypto Capital, the controversial Panama-based payments processor tied to Bitfinex and other major crypto exchanges named Ivan Manuel Molina Lee was arrested by Polish authorities. As the local news outlet wPolityce and their report published on October 24 outlined, Lee is suspected of money laundering and his involvement in an international drug cartel.
According to the article, Molina Lee was detained on the basis of the European Arrest Warrant issued by the prosecutor’s office in Wroclaw, Poland. His arrest is reportedly connected to the $350 million that were seized by the Polish Ministry of Justice before that.
Notably, the seized funds were held by Crypto SP. Z O.O. which is a local firm allegedly affiliated with Crypto Capital and Molina Lee’s arrest “was about money laundering [for] Colombian drug cartels through the cryptocurrency exchange,” the report said.
As the industry news outlet Decrypt also published, several other large crypto businesses and exchanges such as Binance, Kraken and BitMEX have also used the services of Crypto Capital in the past. The head of Crypto Capital is in the news now for being arrested.
The parent company of the major crypto exchange Bitfinex filed a discovery application to regain access to over $850 million in funds tied to Crypto Capital. This request is related to the purportedly inaccessible funds which were kept in bank accounts in Poland, Portugal, the UK and the United States.
The chief financial officer Giancarlo Devasini who explained that Ravid Yosef, a man involved with the exchange’s former payment processor Crypto Capital, provided him with various documents revealing that the firm transferred the Bitfinex client funds between different banks around Europe and the US.
Meanwhile, the previous cryptocurrency news showed that on April 25, the New York Attorney General’s office has alleged that Bitfinex lost $850 million and subsequently used funds from Tether – which is its affiliated stablecoin operator – to secretly cover this shortfall.
The Bitfinex shareholder Zhao Dong also said that the exchange has sealed $1 billion in both hard and soft commitments for its initial native exchange token offering. Now that the head of Crypto Capital is arrested, authorities are looking to investigate the case further.
Chinese Exchange Fcoin Closes, Still Owes Users $125 Million
“This is a problem that is a little too complicated to be explained in a single sentence, the time span is also large, and the two story development lines are advancing and affecting each other at the same time, leading to the final outcome.”The Chinese exchange Fcoin is now in the cryptonews. After its launch in May, the reported trading volumes became some of the biggest in the world overnight thanks to a new business model called "transaction mining." Later on, one Reddit user reported that this volume was actually fake - which is when the problems started. The exchange was later on described as a scam by many and the suspicions about its business model turned out true. There was no airdrop nor ICO at launch and the Chinese exchange Fcoin distributed 51% of its native tokens to users for reimbursing transaction fees. The CEO of Binance, Changpeng Zhao, has publicly called FCoin a Ponzi scheme since the middle of 2018, commenting on Zhang's post in a tweet which read:
“I rarely called out anyone, with exceptions. On Chinese social media, I called FCoin a pyramid scheme in mid-2018. Their founder calls his own plan a "better invention than #Bitcoin". That did it for me. Who would say such a thing? About themselves? Except scammers.”https://twitter.com/cz_binance/status/1229446449152348161 To this, Zhang replied saying that there have been some errors which the Chinese exchange FCoin detected - but did not explain why it failed to address such problems before it is too late.
‘With the deepening of the investigation, we found a large number of existing data problems of dividends and mining returns, and these problems have existed for many days. As a result, a large number of users have already been through operations such as buying and selling various currencies and withdrawing cash, causing the pollution of assets.”The platform was suspended a few days ago by its own account for risk control, which caused a lot of speculation that the project was shutting down and the operators are vanishing. In the last few sentences on his blog post, however, Zhang said that he will do everything to give back the money to users via email personally - and compensate FCoin user losses with the profits he would make from other projects.
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Altsbit Crypto Exchange Suffers Hack Attack, Lost 95% Of Funds
‘’Unfortunately, we have to notify you with the fact that our exchange was hacked during the night and almost all funds from BTC, ETH, ARRR and VRSC were stolen. A small part of the funds are safe on cold wallets.’’From the announcement, it seems that Altbits had almost all of the funds on the hot wallets despite their major vulnerability to malicious cyber intrusions. The Italian crypto exchange will provide a full report on the lost funds soon and we will be able to see exactly how big of damage the theft made. In the follow-up tweets of the exchange, however, can be seen that the hackers stole 1,066 Komodo tokens and 283,375 Verus coins. This combined the value of both stolen cryptos stands at about $27,000. At press time, Altsbit had a 24-hour trading volume of $14.8 million with 98% of its trading activity coming from the ARRR/BTC pair which is the native token of the pirate Chain. Reacting to the news of the hack, some of the supporters of decentralized exchanges noted the vulnerabilities of the platforms that are centralized. However, centralized platforms still command the grater trading volume as the DEX services have a notoriously hard way of navigating the user interfaces. As for the security situation with centralized crypto exchange platforms, the 2020 crypto crime reports by Chainlink show that the exchanges seem to be better equipped to deal with the hackers. Despite the increase in the number of hack attacks, the blockchain analysis firm explained that the total amount of stolen funds in the hacks declined dramatically from the previous year. One of the important strategies that exchanges use is to limit their hot wallet holdings and this will show any inside involvement since the hackers are less sable to drain the vast crypto sums from vulnerable hot wallets. The North Korean hack group Lazarus, is suspected of being behind most of the crypto exchanges in the Asian Pacific and now it seems that it is changing its attack vectors. The group utilizes phishing malware on popular messaging platforms such as Telegram.
Adobe Flash Malware Posing As ‘New Update’ Found In 1 In 10 Macs
“These links were not added by the cybercriminals themselves: we found that all those malicious domains had recently expired, and, judging by the WHOIS data, they now belong to a single individual. On the websites, the newly minted owner posted a malicious script that redirects users to Shlayer download landing pages. There are already over 700 such domains in total," the report by Kaspersky read.We advise all Mac users to run an up-to-date anti-virus program and detect for viruses such as the Adobe Flash malware before it is too late.
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