US Appeals Court Upholds Fraud Conviction of ‘My Big Coin’ Founder
A US appeals court has upheld the prior sentencing of Russell Crater, the founder of the cryptocurrency fraud scheme “My Big Coin.” Crater will serve over 8 years in prison and pay $7.6 million for orchestrating a fraud that took place from 2013 to 2017. The charges against him include wire fraud, unlawful transactions, and running an unlicensed money business. Despite his claims that his Sixth Amendment rights were violated, the court found Crater’s appeals insufficient to alter his sentence.
Another High-Profile Crypto Coin Fraud
In another case of cryptocurrency fraud, a Chinese woman named Yadi Zhang is wanted in both China and Britain for her involvement in laundering money stolen from investment fraud schemes between 2014 and 2017. Chinese authorities allege that Zhang stole $6.3 billion at the time. Similar to Crater’s case, Zhang was able to commit multiple counts of fraud without much scrutiny due to the lack of regulation in the crypto industry before Bitcoin’s recent bull run.
After arriving in London, Zhang hired an assistant named Wen to help her launder the stolen money. Wen claims she believed Zhang was running a prestigious jewelry and antiques business. Wen is currently on trial in the UK on money laundering charges.
In 2017 and 2018, Zhang and Wen converted the stolen Bitcoin into fiat currency, jewelry, and property. However, when Wen attempted to purchase a $12.5 million home in Zhang’s name through a law firm, the transaction failed because the law firm could not verify the source of the Bitcoin. In October 2018, the Metropolitan Police froze Zhang’s account at Mishcon de Reya, the law firm involved.
During the same year, the police raided Zhang and Wen’s Hampstead mansion and seized over 61,000 Bitcoin, which was valued at $1.7 billion at the time ($2.5 billion today). The cryptocurrency was stored in a safe deposit box containing four hardware wallets. The police successfully recovered the cryptocurrency from the devices in 2021 and announced it last month.
Conclusion: Crypto Fraud Continues to Be a Concern
These cases highlight the ongoing issue of fraud within the cryptocurrency industry. While there have been significant advancements in regulation and security measures, criminals continue to find ways to exploit vulnerabilities.
If you are involved in the crypto space, it is crucial to stay vigilant and take precautions to protect yourself from fraud. Here are some key takeaways:
1. Conduct Thorough Research
Before investing in any cryptocurrency or participating in a project, make sure to research and gather as much information as possible. Look for reputable sources, read whitepapers, and understand the technology behind the project.
2. Be Skeptical of High Returns
If an investment opportunity promises unusually high returns with little risk, be cautious. Remember the saying, “If it sounds too good to be true, it probably is.” Scammers often use this tactic to lure unsuspecting individuals into fraudulent schemes.
3. Use Secure Wallets and Exchanges
When storing your cryptocurrencies or conducting transactions, use secure wallets and reputable exchanges. Choose wallets that offer strong security features, such as multi-factor authentication and cold storage options. Similarly, opt for exchanges that have a track record of security and reliability.
4. Verify the Legitimacy of Projects and Individuals
Before getting involved with a cryptocurrency project or working with individuals in the industry, verify their legitimacy. Check for proper licensing and registration, read reviews and testimonials, and ask for references if necessary. Be cautious of anonymous or unverified individuals.
5. Report Suspicious Activity
If you come across any suspicious activity or believe you have been a victim of fraud, report it to the appropriate authorities. By reporting such incidents, you not only protect yourself but also contribute to the overall safety and integrity of the crypto community.
By following these precautions and staying informed about the latest developments in the crypto industry, you can reduce the risk of falling victim to fraud. Remember, it is your responsibility to safeguard your investments and ensure a secure crypto experience.
Hot Take: Stay Alert in the Crypto Space 🚨
The cases of Russell Crater and Yadi Zhang serve as reminders that fraud continues to be a concern in the cryptocurrency industry. As cryptocurrencies gain more mainstream adoption and attention, it is crucial for individuals to stay alert and take necessary precautions.
As a crypto enthusiast, you have the power to protect yourself and contribute to a safer crypto environment. By staying informed, conducting thorough research, and using secure wallets and exchanges, you can minimize the risk of falling victim to fraudulent schemes.
Remember, vigilance is key in this ever-evolving landscape. Stay alert, trust your instincts, and don’t hesitate to report any suspicious activity. Together, we can create a more secure and trustworthy crypto ecosystem.
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