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BVI crypto firms Tether and Bitfinex fined $42.5M by US regulator

British Virgin Islands-domiciled crypto "stablecoin" group Tether has been fined $41 million for fraud by the US Commodity Futures Trading Commission, which also fined BVI crypto exchange Bitfinex $1.5 million for unlicensed activity and other offenses.

Tether Holdings Ltd. et al: $41M Fine

Administrative Order by the Commodity Futures Trading Commission imposing a fine of $41 million on Tether Holdings Limited, Tether Operations Limited, and Tether International Limited, all of the British Virgin Islands, and Tether Limited, of Hong Kong, for alleged fraud with its "virtual currency stablecoin".
bear-stearns-companies

Bizarre lawsuit by ‘Bear Stearns’ alleges ‘$450M fraud’ by Bahamas-licensed securities broker

A bizarre and seemingly-frivolous lawsuit alleging a $450 million fraud by a Bahamas investment group and related individuals has been filed in New York by four Ukraine citizens and 35 suspiciously-named firms that purport to be domiciled in some of the seediest offshore jurisdictions, including one called "Bear Stearns", which claims to be registered in the Seychelles. UPDATE: On October 17th, 2021 - just four days after filing the complaint, the plaintiffs filed a notice of voluntary dismissal.

Oksana Hryn et al v. Weiser Global Capital Markets Ltd. et al: TRO Motion

Motion for Temporary Restraining Order by entities in Alaska, Anguilla, Bahamas, Belize, Saint Kitts and Nevis, Seychelles and Ukraine alleging a $450 million fraud by entities in or from the Bahamas, Canada, and Hong Kong in Oksana Hryn, Yelyzaveta Lata, a.k.a. Elizaveta Lata; Ihor Ushenko, Volodymyr Hren, Astor Asset Management Ltd., Astor Asset Management 1 Ltd., Astor Asset Management 2 Ltd., Astor Asset Management 3 Ltd., Astor Asset Management 4 Ltd., Astor Asset Management 5 Ltd., Astor Asset Management 6 Ltd., Astor Asset Management 7 Ltd., America 2030 Capital Limited, America 2030 Capital 1 Limited, America 2030 Capital 2 Limited, America 2030 Capital 3 Limited, America 2030 Capital 4 Limited, America 2030 Capital 5 Limited, Astor Capital Fund Ltd., Bentley Rothschild Capital Limited, Bentley Rothschild Capital 1 Limited, Bentley Rothschild Capital 2 Limited, Bentley Rothschild Capital 3 Limited, Bentley Rothschild Capital 4 Limited, Blackrock Capital LLC, SAL Oppenheim Ltd., Bear Stearns Companies, Bentley Bronfman Capital Ltd., Dreyfus Corporation, Lincoln Capital Ltd., Newburgh Capital Ltd., Sovereign Liquidity Fund Ltd., Sovereign Liquidity Fund 1 Ltd., Sovereign Liquidity Fund 2 Ltd., Sovereign Liquidity Fund 3 Ltd., State Street Global Advisors Ltd., Union Pacific Capital Ltd., AC Capital Limited, BSC Capital Ltd., Cornelius Vanderbilt Capital Management Ltd., and Aurelius Capital Management Ltd. v. Weiser Global Capital Markets Ltd., Christos Livadas, a.k.a. Chris Livas; Hong ‘Rainbow’ Yang, Chris Papaioannou, a.k.a. Christos Papaioannou; Courtney Filipenko, Rahul Kirpalani, Selby Brice, Jose Marmolejo, Jamaal Stubbs, Weiser Global Asset Management, and Weiser Asset Management at the U. S. District Court for the Southern District of New York.

Oksana Hryn et al v. Weiser Global Capital Markets Ltd. et al: Complaint

Complaint by entities in Alaska, Anguilla, Bahamas, Belize, Saint Kitts and Nevis, Seychelles and Ukraine alleging a $450 million fraud by entities in or from the Bahamas, Canada, and Hong Kong in Oksana Hryn, Yelyzaveta Lata, a.k.a. Elizaveta Lata; Ihor Ushenko, Volodymyr Hren, Astor Asset Management Ltd., Astor Asset Management 1 Ltd., Astor Asset Management 2 Ltd., Astor Asset Management 3 Ltd., Astor Asset Management 4 Ltd., Astor Asset Management 5 Ltd., Astor Asset Management 6 Ltd., Astor Asset Management 7 Ltd., America 2030 Capital Limited, America 2030 Capital 1 Limited, America 2030 Capital 2 Limited, America 2030 Capital 3 Limited, America 2030 Capital 4 Limited, America 2030 Capital 5 Limited, Astor Capital Fund Ltd., Bentley Rothschild Capital Limited, Bentley Rothschild Capital 1 Limited, Bentley Rothschild Capital 2 Limited, Bentley Rothschild Capital 3 Limited, Bentley Rothschild Capital 4 Limited, Blackrock Capital LLC, SAL Oppenheim Ltd., Bear Stearns Companies, Bentley Bronfman Capital Ltd., Dreyfus Corporation, Lincoln Capital Ltd., Newburgh Capital Ltd., Sovereign Liquidity Fund Ltd., Sovereign Liquidity Fund 1 Ltd., Sovereign Liquidity Fund 2 Ltd., Sovereign Liquidity Fund 3 Ltd., State Street Global Advisors Ltd., Union Pacific Capital Ltd., AC Capital Limited, BSC Capital Ltd., Cornelius Vanderbilt Capital Management Ltd., and Aurelius Capital Management Ltd. v. Weiser Global Capital Markets Ltd., Christos Livadas, a.k.a. Chris Livas; Hong ‘Rainbow’ Yang, Chris Papaioannou, a.k.a. Christos Papaioannou; Courtney Filipenko, Rahul Kirpalani, Selby Brice, Jose Marmolejo, Jamaal Stubbs, Weiser Global Asset Management, and Weiser Asset Management at the U. S. District Court for the Southern District of New York.

Convoy Collateral Ltd. v. Broad Idea International Ltd. et al: UK Privy Council’s ‘Black Swan’ Judgment

Judgment that the British Virgin Islands Court of Appeal was wrong to overturn a decision known as "Black Swan" regarding the jurisdiction’s authority to issue freezing injunctions in support of foreign proceedings in Convoy Collateral Ltd., of Hong Kong (Appellant) v. Broad Idea International Ltd., of the British Virgin Islands, and Cho Kwai Chee, of Hong Kong, (Respondents) at the Privy Council of the United Kingdom.

Mark Rubenstein v. Mary Ho et al: Complaint

Complaint for recovery of "short-swing profits" in Mark Rubenstein v. Union Bridge Holdings Ltd., described as a Nevada company based in Hong Kong; Mary Ho, described as a resident of Canada; Moana Ho, described as a resident of Australia, and Lily Ho, described as a resident of Canada, at the U. S. District Court for the Southern District of New York.

Ryan Birmingham et al v. ROFX.net et al: Class Action Complaint

Class Action Complaint against defendants in or from the British Virgin Islands, Czech Republic, England, Hong Kong, Poland, Scotland, Thailand, Ukraine, and USA alleging "Defendants orchestrated a massive international scheme to defraud Plaintiffs and similarly situated investors by soliciting them to deposit money or cash equivalents with ROFX, a “robotically operated foreign exchange trading” platform that purportedly utilized algorithms to trade on behalf of investors" in Ryan Birmingham, Roman Leonov, Mitchell Parent, Jonathan Zarley, and Steven Hansen v. ROFX.net, described as "an unincorporated entity providing unregulated financial services through its web-based platform to investors around the world" with "registered addresses" in England, Hong Kong, and the USA; Auro Advantages LLC, Aware Choice Ltd., Boonruk Ruamkit Co. Ltd., Brass Marker s.r.o., Easy Com LC, Epayments Systems Ltd., Ester Holdings Inc., Global E-Advantages LLC, Grovee LLC, Igoria Trade S.A., IT Outsourcing Co. Ltd., Notus LLC, Shopostar LLC, VDD-Trading Ltd., Wealthy Developments LP, Andrei Fetin, Anna Shymko, Anton Bilous, Borys Konovalenko, Dmytro Fokin, Jorge Luis Castillo, Manuchar Daraselia, Mikhail Rymanov, Natalia Los, Nattpemol Krinara, PapahraTsor Nrviratporn, Peter Mogilniy, Stanislav Khomenko, and Youras Ziankovich at the U. S. District Court for the Southern District of Florida.

Tether & Bitfinex Crypto Asset Litigation: Opinion & Order on Motions to Dismiss

Opinion and Order Granting in Part and Denying in Part Defendants' motions to dismiss a class action complaint known as "Tether and Bitfinex Crypto Asset Litigation" in which "a group of individual investors who purchased cryptocommodities - a class of crypto-assets that includes bitcoin - detailed a wide-ranging conspiracy to artificially inflate the price of those cryptocommodities" by entities in or from the British Virgin Islands, Hong Kong, Italy, Netherlands, Panama, and USA in Pinchas Goldshtein et al v. iFinex Inc., BFXNA Inc., BFXWW Inc., Tether Holdings Limited, Tether Operations Limited, Tether Limited, Tether International Limited, DigFinex Inc., Giancarlo Devasini, Ludovicus Jan van der Velde, Philip Potter, Reginald Fowler, Crypto Capital Corp., Bittrex, Inc., and Poloniex, LLC at the U. S. District Court for the Southern District of New York.

Intelligent Formations Ltd. et al: Public Statement

Public Statement by the Isle of Man Financial Services Authority that Intelligent Formations Limited and Christopher Stirk conducted regulated activity without a license. Editor's Note: Research by OffshoreAlert at the Isle of Man Companies Registry showed that Intelligent Formations Limited was formed in the Isle of Man on June 12th, 2020 and that its directors are Christopher Stirk, of the Isle of Man, who is also the beneficial owner, and Christian Burton, of York, England, while former directors include Sarah Southgate, of Leeds, England, who resigned effective December 28th, 2020, and Richard Macauley, of York, England, who resigned effective March 3rd, 2021. The group also includes at least two other companies with the same name, one in Britain that was incorporated on February 24th, 2020 and whose directors are identified in corporate filings as Sarah Southgate and Christian Burton, while former directors include Christopher Stirk, who resigned effective February 28th, 2021, and one in Hong Kong that was incorporated on May 25th, 2020 and whose directors are identified in corporate filings as Sarah Southgate and Daniel Burton, of York, England. Intelligent Formations' website at intelligentformations.com identifies the company's "Team" as Christopher Stirk, "Managing Director and Co-Founder"; Sarah Southgate, "Administration Director"; Michael Green, "Finance Manager"; Nick Stokes, "IT Manager and Web Design", and Chris Burton, "Business Consultant".

Chardan Capital Markets LLC v. Diginex Ltd.: Notice of Removal

Notice of Removal, including a copy of the complaint, in Chardan Capital Markets LLC, of New York v. Diginex Limited, a cryptocurrency exchange and trading platform described in the complaint as "a Singapore company whose principal place of business is in Hong Kong, at the U. S. District Court for the Southern District of New York.

Luckin Coffee Inc.: ‘Scheme of Arrangement’ Petition

Petition for the Court's sanction of a Scheme of Arrangement in the matter of Luckin Coffee Inc. (in Provisional Liquidation), described as "an investment holding company with its direct and indirect subsidiaries located in the British Virgin Islands, Hong Kong, the United States and the PRC", at the Grand Court of the Cayman Islands.

USA v. Evo Bechtiger et al: Criminal Indictment

Criminal Indictment alleging "a fraudulent scheme referred to by the conspirators as the 'Singapore Solution'" involving entities in the British Virgin Islands, Hong Kong, Liechtenstein, Singapore, and Switzerland in USA v. Evo Bechtiger, Bernhard Lampert, Peter Rüegg, Roderic Sage, Rolf Schnellmann, Daniel Wächli, and Allied Finance Trust AG, described as "a financial services company in Zurich", at the U. S. District Court for the Southern District of New York.

China Medical Technologies Inc. et al v. KPMG: Discovery Application

Application by China Medical Technologies Inc. (in Liquidation), described as a Cayman Islands-domiciled "holding company of a group of companies incorporated in Hong Kong, Mainland China, the British Virgin Islands and Singapore", and CMED Technologies Ltd., of the British Virgin Islands, to take discovery from KPMG LLP for use in legal prceddings in Hong Kong, filed at the U. S. District Court for the Southern District of New York.

Aspect Properties Japan Godo Kaisha v. Jonathan Cheng et al: Writ of Summons

Writ of Summons seeking "damages for conspiracy" in Aspect Properties Japan Godo Kaisha v. Jonathan Cheng, of Australia; Yicheng Chen, of Hong Kong; LC Capital Limited, of Hong Kong; Infinity Capital Group Limited, of the Cayman Islands; LC Capital Limited, of the Cayman Islands, and ICG I, of the Cayman Islands, at the Grand Court of the Cayman Islands.
satish-kumbhani

SEC sues BitConnect for ‘$2B crypto fraud’

The U.S. SEC has sued individuals and companies based in California, India, and Hong Kong for allegedly perpetrating a $2 billion crypto fraud known as BitConnect.

Alpene Ltd. v. Elizabeth McCaul: Discovery Application

Application by Alpene Ltd., of Hong Kong, described as "the 100% indirect owner of a bank in the Republic of Malta", to take discovery from Elizabeth McCaul, described as a resident of New York, for use in legal proceedings in Malta in which Alpene claimed that "Malta engaged in a series of allegedly retaliatory acts against Alpene's investment, Pilatus Bank", filed at the U. S. District Court for the Eastern District of New York.

Cathay Capital Holdings III LP v. Osiris International Cayman Ltd.: Judgment

Judgment regarding "The legal principles to consider when a court is asked to proceed ex parte without notice to determine an application for Norwich Pharmacal disclosure orders" in connection with legal proceedings in China in Cathay Capital Holdings III, L.P. v. Osiris International Cayman Limited at the Grand Court of the Cayman Islands.

Oak Trust et al v. Jichen Wu: Discovery Application

Application by Oak Trust, Acorn Trust, Eagle Trust, Duffy Trust, Robert J. Parfet Living Trust, Geluk Global Fund Limited SAC, of the Bahamas; Migration Investments, LLC, of Colorado; Boustrophedon International Ltd., of Hong Kong; Michael R. Shea, Erin Shea, Angela Ling, Fuhua Ling, Philip Bullock, Lifang Liu, Justin Payne, Michael Dietzen, Kimberly J. Dietzen, Brian Sly, David K. Sly, Gregory Sly, Karen Sly, Nelson Sly, Helen S. Sly, Sly Family Trust, and Tamara A. Sly Separate Property Trust to take discovery from Jichen Wu, for use in "an anticipated proceeding" in England regarding "a multi-million dollar fraudulent Forex investment and trading scheme" involving Equiti Capital UK Limited, Mediatrix Capital Inc., Blue Isle Markets Inc., and Blue Isle Markets Ltd., filed at the U. S. District Court for the Eastern District of Texas.

Hawksford Trust Company Jersey Ltd.: Public Statement

Public Statement by Jersey Financial Services Commission that it has "concluded" that Hawksford Trust Company Jersey Limited "breached certain principles" of the Financial Services (Trust Company Business (Assets - Customer Money)) (Jersey) Order 2000 and Code of Practice for Trust Company Business. Editor's Note: Research by OffshoreAlert in the Jersey corporate register showed that Hawksford Trust Company Jersey Limited was incorporated in Jersey on August 8th, 1963 and, in its 2020 annual return, signed by director Darren Kelland, its sole shareholder was identified as Hawksford Group Holdings Limited, which was incorporated in Jersey on May 15th, 2017 and, in its 2020 annual return, its sole shareholder was identified as Hawksford Holdings Limited, which was incorporated in Jersey on August 12th, 2008 and, in its 2020 annual return, its shareholders were identified as Dunedin Buyout Fund II LP, a private equity fund in Scotland; Dunedin (SAPE) GP Nominees Limited, acting as nominee for Equity Harvest Fund LP, of Scotland; Michael Edmund Powell, Louis Philip Chetwynd Taylor, James Webster Howe, Boota Singh Kular, Stephen David John Spybey, all of Jersey; Jacqueline Anne Low, of Singapore; Matthew Andrew Wilkinson, Daniel Richard Hainsworth, Gerardus Jan Michel van Leeuwen, Stephen Spybey and Gerardus van Leeuwen, as Trustees of the Hawksford Holdings Limited EBTl Darren Thomas Kelland, all of Jersey; Stefano Passarello, of Hong Kong; Dario Acconci, of Singapore; Marta Giordano, of Hong Kong; Giacomo Stoppa, of Hong Kong; Peter Zhu, of China, and Aldford Street Nominees Limited, of England.

USA v. Shahrukh Razzak: Arrest

Arrest of Shahrukh Razzak regarding an indictment for fraud and money laundering alleging several defendants "exported nearly $100 million worth of Apple and Samsung products into the United Arab Emirates and Hong Kong grey markets" that were obtained "through acts of robbery, fraud, or theft" in USA v. Shahrukh Razzak at the U. S. District Court for the Eastern District of Texas.

Pearl Holding III Ltd.: ‘Scheme of Arrangement’ Petition

Petition for Court Sanction of a Scheme of Arrangement in the matter of Pearl Holding III Limited, which "acts as an intermediate holding company with its direct and indirect subsidiaries being located in Singapore, Hong Kong, the United States, Thailand, Malaysia and the PRC", at the Grand Court of the Cayman Islands.

Victory Sky Holdings Ltd. v. ICG I: Stop Notice

Stop Notice by Victory Sky Holdings Limited, of the British Virgin Islands, regarding one share in ICG I owned by LC Capital Limited, filed at the Grand Court of the Cayman Islands.

Brian Kang et al v. Hybrid Trade Ltd. et al: Complaint

Complaint alleging theft, misappropriation, and securities fraud regarding the raising of $50 million "from investors based around the world, including within the United States" from the sale of "digital tokens" that were "neither registered with the United States Securities and Exchange Commission nor qualified for any exemption from registration with the SEC, thereby depriving investors of the benefit of the disclosures required by the federal securities laws" in Brian Kang, Skyblock LLC, Mid-Wilshire Consulting LLC, Prasad Hurra, David Kim, Blue Rock Group, Artemio Verduzo, David Kwon, and Young Jae Kwon v. Hybrid Trade Limited, described as operating from addresses in Hong Kong, Malta, and Singapore; Asia Digital Asset Exchange, described as operating from an address in Cyprus; Allysian Sciences, Apolo Ohno, a former Olympic speed skating champion; Rod Jao, Eugenio Pugliese, and Henry Liu at the U. S. District Court for the Central District of California.

FinCEN v. BitMEX et al: $100M Fine

Public Notice by FinCEN that it has imposed a fine of $100 million on HDR Global Trading Limited, of the Seychelles; 100x Holdings Limited, ABS Global Trading Limited, of Delaware; Shine Effort Inc. Limited, of Hong Kong, and HDR Global Services (Bermuda) Limited, of Bermuda, d.b.a. BitMEX, described as "a convertible virtual currency derivatives exchange".

BitMEX agrees to pay $100M to settle US regulatory action

Companies in Bermuda, Hong Kong, the Seychelles, and USA have agreed to pay $100 million to settle a complaint by the CFTC alleging they operated an unregistered cryptocurrency trading platform known as BitMEX.

CFTC v. BitMEX et al: $100M Settlement

Consent Order imposing a civil penalty of $100 million against the operators of the BitMEX cryptocurrency trading platform in Commodity Futures Trading Commission v. HDR Global Trading Limited, of the Seychelles; 100x Holdings Limited, of Bermuda; ABS Global Trading Limited, of Delaware; Shine Effort Inc Limited, of Hong Kong, and HDR Global Services (Bermuda) Limited, of Bermuda, at the U. S. District Court for the Southern District of New York.

Oak Trust et al v. Mushegh Tovmasyan: Discovery Application

Application by Oak Trust, Acorn Trust, Eagle Trust, Duffy Trust, Robert J. Parfet Living Trust, Geluk Global Fund Limited SAC, of the Bahamas; Migration Investments, LLC, of Colorado; Boustrophedon International Ltd., of Hong Kong; Michael R. Shea, Erin Shea, Angela Ling, Fuhua Ling, Philip Bullock, Lifang Liu, Justin Payne, Michael Dietzen, Kimberly J. Dietzen, Brian Sly, David K. Sly, Gregory Sly, Karen Sly, Nelson Sly, Helen S. Sly, Sly Family Trust, and Tamara A. Sly Separate Property Trust to take discovery from Mushegh Tovmasyan, described as a resident of Puerto Rico, for use in "an anticipated proceeding" in England against Equity Capital UK Limited regarding "a multi-million dollar fraudulent Forex trading and investment scheme", filed at the U. S. District Court for the District of Puerto Rico.

FourWorld Event Opportunities LP et al v. General Atlantic LLC et al: Discovery Application

Application by FourWorld Event Opportunities LP and Genesis Emerging Markets Investment Company to take discovery from General Atlantic LLC, General Atlantic Service Company, L.P., GASF Interholdco Ltd., General Atlantic Partners (Bermuda) III, LP, General Atlantic Partners (Bermuda) IV LP, Inc., GAP Coinvestments CDA LP, GAP Coinvestments III LLC, GAP Coinvestments IV LLC, GAP Coinvestments V LLC, GAP (Bermuda) Ltd., General Atlantic GenPar (Bermuda) LP, General Atlantic Singapore Fund Pte. Ltd., General Atlantic Singapore 58 Pte. Ltd., and General Atlantic Singapore 58TP Pte. Ltd., Warburg Pincus LLC, Warburg Pincus China-Southeast Asia II (Cayman) LP, Warburg Pincus China-Southeast Asia II-E (Cayman) LP, WP China-Southeast Asia II Partners (Cayman) LP, Warburg Pincus China-Southeast Asia II Partners LP, Warburg Pincus (Callisto) Global Growth (Cayman) LP, Warburg Pincus (Europa) Global Growth (Cayman) LP, Warburg Pincus Global Growth-B (Cayman) LP, Warburg Pincus Global Growth-E (Cayman) LP, WP Global Growth Partners (Cayman) LP, Warburg Pincus Global Growth Partners (Cayman) LP, and Polarite Gem Holdings Group, Ltd. for use in "an appraisal proceeding filed in the Grand Court of the Cayman Islands" at the U. S. District Court for the Southern District of New York.

Junhui Jiang v. BlueCity Holdings Ltd. et al: Class Action Complaint

Class Action Complaint in Junhui Jiang v. BlueCity Holdings Limited, described as a Cayman Islands-domiciled, China-based company that "operates a platform for the LGBTQ - lesbian, gay, bisexual, transgender, and queer (or questioning) - community primarily under the BlueCity brand in China, India, Korea, Thailand, and Vietnam"; Baoli Ma, Zhiyong (Ben) Li, Zhe Wei, Wei Ying, Colleen A. DeVries, AMTD Global Markets Limited, Loop Capital Markets LLC, Tiger Brokers (NZ) Limited, Prime Number Capital LLC, R. F. Lafferty & Co. Inc., and Cogency Global Inc. at the U. S. District Court for the Eastern District of New York.