Man from Nevada Accused in CoinDeal Scam, Faces Imprisonment

Man from Nevada Accused in CoinDeal Scam, Faces Imprisonment

The US Department of Justice charges a Nevada man for his role in a multi-million-dollar CoinDeal investment scheme that defrauded 10,000 investors out of $45 million.

The United States Department of Justice (DOJ) has charged a Nevada man for his role in the multi-million-dollar CoinDeal financing scheme.

In a recent press release, the DOJ stated Bryan Lee conspired with CoinDeal leader Neil Chandran to defraud 10,000 investors out of $45 million.

The Nevada resident reportedly misled customers to invest in corporations controlled by Chandran by claiming that they were about to be acquired by buyers with deep pockets.

“Chandran allegedly misled investors by falsely promising incredibly high returns on the premise that his corporations were about to be acquired by a consortium of wealthy buyers,” the notice said. 

Furthermore, the DOJ alleged that Lee was the nominee owner and director of ViMarket, which claimed to be developing VR and “metaverse” technologies and an associated cryptocurrency. 

Although while Chandran promised “ incredibly high returns” to investors, Lee followed Chandran’s instructions and put investor funds into ViMarket’s bank accounts, the federal agency said. 

“Lee and Chandran allegedly misappropriated millions of dollars of investor funds and spent it on high-end cars and real estate.”

Lee is charged with one count of conspiracy, two counts of mail fraud, one count of wire fraud, and 3 counts of engaging in monetary transactions in the criminally derived property. 

He faces up to 110 years in prison if convicted on all charges. 

It’s worth noting that, Lee has not is still been found guilty and will make his 1st appearance in court immediately.

Earlier in the year, the Securities and Exchange Commission (SEC) also charged  5 individuals and 3 corporations tied to CoinDeal. 

Cryptocurrency Scams Increase as Market Grows

As the digital currency market persists to grow, so does the prevalence of scams and hacks targeting unsuspecting victims.

Only a few weeks ago, it was revealed that a scam-as-a-service company dubbed “Inferno Drainer” has siphoned off approximately $6 Million worth of cryptocurrency assets from users since the start of the year. 

Similarly, a recent report showed that betwixt August 2022 and May, cryptocurrency scammers made around 3,234 Ethereum (ETH), worth over $6 Million, from fake airdrops.

A year ago, the cryptocurrency industry lost  approximately $4 Billion worth of digital assets to hacks, fraud, scams, and rug pulls, with 5 major exploits totaling $2,361,000,000 alone, accounting for 59.8 percent of all losses in the year.  

Although while hacks accounted for the bulk bulk of cryptocurrency losses in 2022, other forms of illegal activities, including scams and frauds, continued to evolve and claim more victims. 

For example, some scams capitalized on the World Cup Qatar 2022 program to launch phishing websites from around the world designed to steal users’ identifying and banking data. 


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