Crypto

SEC v. Jeremy Rounsville: Complaint (‘Arbitraging.co Crypto Fraud’)

Complaint alleging an investment fraud based around "a crypto asset trading program" called Arbitraging.co that, inter alia, involved "a forged British Virgin Islands business license" in U.S. Securities and Exchange Commission v. Jeremy K. Rounsville at the U.S. District Court for the Northern District of Texas.

Kraken v. AvaTrade Ltd.: Petition to Confirm Arbitration Award (‘Crypto Dispute’)

Petition to Confirm Arbitration Award of $355,552 in Payward Inc., d.b.a. Kraken, described as "one of the world's largest cryptocurrency exchanges" v. AvaTrade Limited, described as "a multi-national brokerage firm" that is based in Ireland and "does business on six continents" and which claims on its website to be "regulated" in Australia, British Virgin Islands, Canada, Cyprus, Ireland, Israel, Japan, South Africa, and United Arab Emirates, at the Superior Court of California, County of San Francisco.

FXCH Ltd. v. Centre Consortium LLC: Complaint (‘$6M Crypto Dispute’)

Complaint involving "a so-called 'stablecoin' that is pegged 1-to-1 to the U.S. Dollar, called USD Coin and denominated as USDC" in FXCH Ltd., a.k.a. Foreign Exchange Clearing House, described as an Ireland-based "member-based financial utility for Institutional Spot-FX Clearing" v. Centre Consortium LLC at the U.S. District Court for the District of Massachusetts.

Brian Kang et al v. Hybrid Trade Ltd. et al: Complaint (‘$50M Crypto Fraud’)

Complaint in Brian Kang, individually and on behalf of SkyBlock LLC and Mid-Wilshire Consulting LLC; Prasad Hurra, David Kim, individually and on behalf of Blue Block Group; Artemo Verduzco, David Kwon, and Young Jae Kwon v. Hybrid Trade Limited, Asia Digital Asset Exchange, Allysian Sciences, Apolo Ohno, Rod Jao, and Eugenio Pugliese at the Superior Court of the State of California, County of Los Angeles.

Tether: The Coin That Could Wreck Crypto

This video will look at several red flags concerning the $60 billion 'stablecoin' known as Tether and the potentially devastating impact its collapse - which many consider to be inevitable - is likely to have on the entire crypto industry and the wider financial markets.

Alejandro Canto v. BKCoin Management LLC et al: Complaint (‘Improper Crypto Margin Calls’)

Complaint alleging "Defendants violated the most exacting loyalties and strictest of confidences to hide massive losses in Plaintiff Alejandro Canto's investment portfolio while illegally raiding that portfolio of millions of dollars" in Alejandro Canto, described as "a young entrepreneur who earned millions of dollars in emerging industries, such as cannabis and, as relevant here, cryptocurrency" v. BKCoin Management LLC, described as a crypto investment manager; Carlos Betancourt, and Kevin Kang at the U.S. District Court for the Southern District of New York.

Three Arrows Capital Ltd.: Discovery Motion

Motion by Russell Crumpler and Christopher Farmer, as the Foreign Representatives of Three Arrows Capital Ltd., described as "an investment firm incorporated in the BVI with a focus on trading cryptocurrency and other digital assets that was reported to have over $3 billion of assets under management as of April 2022", to take discovery from Three Arrows Capital's Founders, Su Zhu and Kyle Davies, for use in legal proceedings in the British Virgin Islands, filed at the U.S. Bankruptcy Court for the Southern District of New York.

Tether & Bitfinex Litigation: Decision Transcript (‘Removal of Roche Freedman Law Firm’)

Transcript of Decision in which U.S. District Judge Katherine Polk Failla granted crypto lawyer Kyle Roche's motion to withdraw and removed Roche Freedman law firm as interim class counsel in litigation styled as ‘In Re. Tether and Bitfinex Crypto Asset Litigation’ in David Leibowitz et al v. iFinex Inc., a.k.a. Bitfinex; DigFinex Inc., BFXNA Inc., BFXWW Inc., Tether International Limited, Tether Operations Limited, Tether Holdings Limited, all of the British Virgin Islands; Tether Limited, of Hong Kong; Ludovicus Jan van der Velde, a citizen of the Netherlands, and Giancarlo Devasini, a citizen of Italy, at the U. S. District Court for the Southern District of New York.

USA v. David Carmona et al: Criminal Indictment (‘IcomTech Crypto Fraud’)

Criminal Indictment alleging fraud involving IcomTech, described as "a purported cryptocurrency mining and trading company that promised to earn its victim-investors profits in exchange for their purchase of purported cryptocurrency-related investment products" in USA v. David Carmona, Marco Ruiz Ochoa, Moses Valdez, Juan Arellano, David Brend, and Gustavo Rodriguez at the U.S. District Court for the Southern District of New York.

Datachain Labs LLC v. Roger Quijano et al: Complaint (‘Crypto Fraud’)

Complaint in Datachain Labs LLC v. Roger Gabriel Benites Quijano, a.k.a. Roger Benites; Bitinka Limited, of Hong Kong; Inka Ventures Ltd., of Guam; Chasqui Tech AB, of Sweden; Blockzy OU, Blockzy Technologies Srl, of Estonia; Blockzy Technologies SL, of Estonia, and Roger M. Benites at the Superior Court of Connecticut, Stamford/Norwalk.

Bittrex Inc.: $24M Fine (OFAC)

Public Notice by the U.S. Department of the Treasury's Office of Foreign Assets Control that Bittrex Inc., which operates a crypto exchange, has agreed to pay $24.2 million to settle an investigation into "violations of multiple sanctions programs".

Bittrex Inc.: $5M Fine (FinCEN)

Consent Order imposing a penalty of $29 million, of which $5 million will be paid after a $24 million credit to OFAC is taken into account, for violations of the Bank Secrecy Act in Financial Crimes Enforcement Network v. Bittrex Inc., a crypto exchange.

Nathan Christian v. Loyakk Ltd. et al: Complaint (‘Crypto Promotion Dispute’)

Complaint alleging breach of contract, unjust enrichment, and negligence regarding the promotion of an Initial Coin Offering in Nathan Christian, described as "a heralded and respected advisor in the blockchain technology sector" v. Loyakk Inc., Loyakk Ltd., of England; Salim Ali, and Sadiq Quasim, of England, at the U.S. District Court for the District of Wyoming.

Axtra LLC et al v. AXIA Issuer Inc. et al: Defendants’ Motion to Dismiss (Crypto Dispute)

Defendants' Motion to Dismiss regarding a dispute involving digital assets in Axtra LLC, of Wyoming, and The AXIA-Axtra Trust, described as “a unit trust formed under the laws of the Cayman Islands” v. AXIA Issuer Inc., described as "a for-profit corporation incorporated in the British Virgin Islands" whose "sole director ... is a corporation domiciled in Nevis", and AXIA Foundation Inc., described as “a non-profit corporation incorporated in the Commonwealth of Dominica” whose directors reside in Canada and Dominica, at the U.S. District Court for the District of Wyoming.

Sprume.IO Ltd. v. Digital Assets Group: Complaint (‘Crypto Banking Contract Dispute’)

Complaint alleging breach of contract in Sprume.IO Ltd., described as a British Virgin Islands-domiciled "software development company that offers various blockchain-based services" v. Atlantic International Capital LLC, d.b.a. Digital Assets Group, described as a Florida-domiciled company "that marketed itself to Sprume as an experienced global team of financial experts" that "represented that it had a special relationship with key people at" Deltec Bank and Trust and Delchain Limited, both of the Bahamas, "that would enable it to onboard Spume to these platforms in a much shorter period of time than if Spume sought to obtain Deltec and Delchain services by itself", at the U.S. District Court for the Southern District of Florida.

Kim Kardashian: $1.26M Penalties (‘Crypto Promotion-Undisclosed Compensation’)

Administrative Order by the U.S. Securities and Exchange Commission imposing penalties totaling $1.26 million on Kimberly Kardashian, described as "a well-known media personality and businesswoman" for promoting "a crypto asset security" known as EthereumMax (EMAX) without disclosing that she received compensation of "approximately $250,000".

CFTC v. Adam Todd et al: Complaint (‘Crypto Fraud’)

Complaint alleging fraud involving "an illegal digital asset derivatives trading platform" in Commodity Futures Trading Commission v. Adam Todd, Digitex LLC, of Saint Vincent and the Grenadines; Digitex Limited, of the Seychelles; Digitex Software Limited, of Ireland, and Blockster Holdings Limited, of Gibraltar, at the U.S. District Court for the Southern District of Florida.

SEC v. Arbitrade Ltd. et al: Complaint (‘$37M Crypto Fraud’)

Complaint alleging "a crypto asset pump-and-dump scheme" in U.S. Securities and Exchange Commission v. Arbitrade Ltd., of Bermuda; Cryptobontix Inc., of Canada; Troy R.J. Hogg, of Canada; James L. Goldberg, Stephen L. Braverman, and Max W. Barber, as Defendants, and SION Trading FZE, of the United Arab Emirates, as Relief Defendant, at the U.S. District Court for the Southern District of Florida.

SEC v. The Hydrogen Technology Corporation et al: Complaint (‘$2.2M Crypto Fraud’)

Complaint alleging a scheme "to fraudulently manipulate the price and volume of Hydro tokens traded on crypto asset trading platforms so that Hydrogen could sell its own Hydro tokens at a greater profit" involving, inter alia, Moonwalkers Trading Limited, of South Africa, in U.S. Securities and Exchange Commission v. The Hydrogen Technology Corporation, Michael Ross Kane, and Tyler Ostern at the U.S. District Court for the Southern District of New York.

Voyager Digital Holdings Inc. v. Adam Lavine et al: Complaint & TRO Motion

Complaint and Emergency Motion for a Temporary Restraining Order alleging "threats and actions carried out by two disgruntled former employees of the Debtors" in Voyager Digital Holdings Inc., Voyager Digital Ltd., and Voyager Digital LLC v. Adam Lavine and Shingo Lavine at the U.S. Bankruptcy Court for the Southern District of New York.

Nexo Capital Fund SPC: Directors

Director Details for Nexo Capital Fund SPC, obtained from the Cayman Islands General Registry on September 27th, 2022.

Nexo Capital SEZC: Directors

Director Details for Nexo Capital SEZC, obtained from the Cayman Islands General Registry on September 27th, 2022.

Nexo Capital Inc.: Directors

Director Details for Nexo Capital Inc., obtained from the Cayman Islands General Registry on September 27th, 2022.

Nexo Inc.: Directors

Director Details for Nexo Inc., obtained from the Cayman Islands General Registry on September 27th, 2022.
OffshoreAlert Conference London

‘Investigating Crypto’ a major theme at OffshoreAlert London

"Whatever you think of the underlying technology, there's no denying that the crypto industry is rife with fraud," said OffshoreAlert's founder and editor, David Marchant. "It has created an abundance of opportunities for investigators and asset recovery specialists."

USA v. 0.24247794 Bitcoin et al: Forfeiture Complaint (Avinash Pal)

Forfeiture Complaint regarding the proceeds of "a transnational criminal organization running an exploitation of elderly and social engineering scam" that were seized from a wallet at Binance crypto exchange in the name of Avinash Pal in USA v. 0.24247794 Bitcoin and 38,616.40303284 Tether at the U.S. District Court for the District of South Carolina.

Nexo Inc. et al: Cease and Desist Order (Oklahoma)

Cease and Desist Order by the Oklahoma Department of Securities against Nexo Financial LLC, of Delaware; Nexo Inc., of the Cayman Islands, and Nexo Capital Inc., of the Cayman Islands, which collectively operate a crypto lending platform.

New York AG v. Nexo Inc. et al: Complaint

Complaint for "acting as unregistered securities brokers or dealers and/or commodities broker-dealers" in New York Attorney General v. Nexo Inc. and Nexo Capital Inc., both of the Cayman Islands, which operate a crypto lending platform, at the Supreme Court of the State of New York, County of New York.

Nexo Inc. et al: Cease and Refrain Oder (California)

Cease and Refrain Order by the California Department of Financial Protection and Innovation against Nexo Group, which "comprises business entities organized primarily in European countries and territories"; Nexo Inc., of the Cayman Islands, and Nexo Capital Inc., of the Cayman Islands, which collectively "a crypto platform that offers crypto interest accounts, self-directed and over-the-counter trade execution, and lending, borrowing, and exchange services".

USA v. 726,602.61971034 Tether: Forfeiture Complaint (Manprett Singh)

Forfeiture Complaint regarding the proceeds of "a transnational criminal organization running an exploitation of elderly and social engineering scam" that were seized from a wallet in the name of Manprett Singh at Binance crypto exchange "by agents with the United States Secret Service during an investigation into in USA v. 726,602.61971034 Tether at the U.S. District Court for the District of South Carolina.

Nexo Inc. et al: Cease and Desist Order (Vermont)

Ex Parte Order to Cease and Desist by the State of Vermont Department of Financial Regulation in re. Nexo Inc., of the Cayman Islands; Nexo Capital Inc., of the Cayman Islands, and Nexo Financial LLC, a Delaware entity based in London, England, collectively described as "a financial services company that generates revenue by providing, deploying, and investing digital assets and virtual currencies".
Yorgen Fenech-Aaron Mifsud Bonnici

Malta police investigate lawyer Aron Mifsud Bonnici & businessman Yorgen Fenech for ‘Dark Web weapons purchase using crypto’

Police in Malta are investigating lawyer Aron Mifsud Bonnici and businessman Yorgen Fenech regarding "the unlawful acquisition of firearms" on the "Dark Web" using Bitcoin. Details are contained in an application to collect evidence from crypto exchanges Poloniex and Coinbase that was filed at federal court in Delaware by the USA after receiving a request for judicial assistance from Malta.

Ethereum Name Service et al v. GoDaddy Inc. et al: Amended Complaint

Amended Complaint that "arises from GoDaddy’s breach of its agreement to respect, acknowledge, and protect the duly registered and extremely valuable eth.link domain name" in True Names Ltd., d.b.a. Ethereum Name Service, of Singapore, and Virgil Griffith v. GoDaddy Inc., GoDaddy.com LLC, Dynadot LLC, and Manifold Finance Inc. at the U.S. District Court for the District of Arizona.

Malta: Yorgen Fenech et al (‘Dark Web Firearms Purchase’)

Application for the appointment of a Commissioner to collect evidence from crypto exchanges Poloniex and Coinbase - pursuant to a request for judicial assistance from Malta - for a criminal investigation into Maltese businessman Yorgen Fenech and Maltese lawyer Aron Mifsud Bonnici for "the unlawful acquisition of firearms".

USA v. 14.77997889 Ethereum: Forfeiture Complaint (‘Crypto Fraud Involving Efeoghene Oboghenemiepha’)

Forfeiture Complaint regarding the proceeds of an alleged crypto fraud in USA v. 14.77997889 Ethereum seized from an account at Binance crypto exchange in the name of Efeoghene Greatnes Oboghenemiepha, described as the holder of a Nigerian driver's license who appears to operate from Nigeria and South Africa, filed at the U.S. District Court for the Southern District of Illinois.

Aaron Leibowitz et al v. Tether et al: Disclosure Order

Order that the Bitfinex/Tether defendants produce financial records that "relate to the backing of USDT" in Aaron Leibowitz et al et al v. BFXNA Inc., BFXWW Inc., Bittrex, Inc., Crypto Capital Corp., Giancarlo Devasini, DigFinex Inc., Reginald Fowler, Global Trade Solutions AG, Poloniex, LLC, Philip G. Potter, Tether Holdings Limited, Tether International Limited, Tether Limited, Tether Operations Limited, iFinex Inc., and Ludovicus Jan van der Velde at the U.S. District Court for the Southern District of New York.
Happening NowOffshoreAlert vGlobal

The platform for this week's OffshoreAlert vGlobal FREE virtual conference is now open, and it's not too late to register to watch sessions and participate in networking. vGlobal is a neutral platform where participants in high-value international finance around the world can learn, meet, and conduct business.

If you haven't done so already, register now - for FREE - at www.vglobal.io.