The United States has seized $7.1 million in cryptocurrency linked to a fraud probe involving Nigerian and Russian nationals who allegedly laundered money on the Binance platform. This development is part of a broader crackdown on cryptocurrency-related crimes.
International Operation
Eighteen individuals and entities have been charged in connection with widespread fraud and manipulation in the cryptocurrency markets. The charges were unsealed in Boston, highlighting the international scope of the investigation. Authorities have apprehended three defendants in Texas, the United Kingdom, and Portugal, with more than $25 million in cryptocurrency seized.
Charges and Allegations
The defendants are accused of creating cryptocurrency companies, making false statements about their tokens, and executing sham trades to artificially inflate trading prices. This deceitful tactic, known as a “pump and dump” scheme, allegedly bilked honest investors out of millions of dollars. The charges include wire fraud, market manipulation, and conspiracy.
Regulatory Action
The Securities and Exchange Commission has filed civil complaints alleging violations of securities laws. Acting United States Attorney Joshua Levy emphasized the importance of aggressively pursuing fraud in the cryptocurrency industry. The FBI’s innovative approach, including creating a cryptocurrency token and company, helped identify and disrupt these alleged fraudsters.