The founders of the international digital currency pyramid scheme OneCoin were charged with fraud after taking part in marketing the coin. The announcement was published by the US Attorney Office today and it reached our crypto news so let’s read more about the decision.
OneCoin founders Konstantin Ignatov and his sister Ruja Ignatova were arrested in Los Angeles and were charged with wire fraud, money laundering, and securities fraud by making investors contribute billions of dollars in the cryptocurrency.
The fraudulent cryptocurrency was established back in 2014 in Sofia, Bulgaria. The project works as a marketing network where members receive commissions for attracting other investors that are likely to invest in the currency packages. OneCoin at one point had over three million members across the world.
When Konstantin was asked how the members can cash out their coins, he told everyone who is interested in cashing out to leave the room because that is not the point of the project. After the charges, the US Attorney of Manhattan said:
“As alleged, these defendants created a multibillion-dollar ‘cryptocurrency’ company based completely on lies and deceit. They promised big returns and minimal risk, but, as alleged, this business was a pyramid scheme based on smoke and mirrors more than zeroes and ones. Investors were victimized while the defendants got rich. Our Office has a history of successfully targeting, arresting, and convicting financial fraudsters, and this case is no different.”
The New York County District Attorney Cyrus R. Vance Jr. claimed that the defendants created an old-school pyramid scheme compromising the integrity of the entire financial system in New York by defrauding investors for billions of dollars.
Ex-CEO Of Crypto Startup AriseBank Pleaded Guilty Of Defrauding Investors For $4.2 Million
“We will not tolerate flagrant deception of investors – virtual or otherwise.”This kind of a plea deal Rice agreed to with Cox is one of the first of its kinds in the US Federal Court that includes crypto companies. Rice pleaded guilty on security fraud charges after he admitted that he lied potential investors into investing hundreds of dollars. Rice was found guilty of scamming investors into buying his AriseCoin cryptocurrency which claimed to bring ‘’no-risk returns.’’ Investors placed their money right into Rice’s scam net and invested more than $4,250,000 in BTC, ETH, and LTC, into the ICO that was supposed to provide them with the AriseCoin. He also claimed that he raised $600 million in an ICO which later turned out to be false. The US Attorney’s Office stated:
“Mr. Rice quietly converted investor funds for his own personal use, spending the money on hotels, food, transportation, a family law attorney, and even a guardian ad litem – facts he failed to disclose to investors.’’AriseBank was named as the best-decentralized bank by Rice and he claimed that the crypto bank will provide the customers ‘’FDIC-insured accounts and transactions’’ which the United States Securities and Exchange Commission turned out to be false. He also claimed that his bank supports Visa card payments and that the platform supports hundreds of virtual currencies. AriseBank was not authorized for providing banking services in the state of Texas. Rice is now obliged to repay the investors who lost their money and he is also facing twenty years in prison if he gets sentenced in July. Initially, he was facing up to 120 years in federal prison.
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Boston Legal System Damaged After BTC Ransomware Attack
“CPCS’s computer systems have been attacked and are not working properly. We are still representing clients. In addition, there is no evidence that confidential information from clients has been released as a result of these attacks.”Initially, the attack happened on February 27. The organization believed that paying the ransom means a waste of money so they decided to restore the systems manually. Two weeks after, the entire justice system in Boston can feel the damaging effects. The agency cannot really say how long the delay will last or when they will get back online. In the meantime, people working in the agency cannot use their email or enter the agency’s website. Ransomware attacks became popular in 2015. The attackers mainly targeted police agencies that end up paying the ransom. The public infrastructure is always a target of ransomware attackers since the offer public services and cannot end up being crippled because the people are the ones who pay the higher price. The public defenders didn’t say how much money the attackers demanded. However, the cost to unlock a computer could start from $100 up to thousands of dollars. The attackers usually target victims individually but law enforcement agencies or other government agencies are not excluded. Last year, a couple of Dutch hackers were sentenced to community service after attacking more than 1,000 computer systems and gathering over $11,000.
Thieves Steal $200k Worth Of Bitcoin (BTC) Across 7 Canadian Cities
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