Israeli crypto entrepreneur Moshe Hogeg and his blockchain firm Stox (STX) are facing a lawsuit from a disgruntled investor in the United States. A Vancouver-based investor has accused Hogeg of major breaches of contract and alleged fraud that caused him losses of at least $430,000, according to a lawsuit filed Nov. 25. The complaint is filed with the United States District Court for the Western District of Washington. In the 43-page lawsuit, the plaintiff Sean Snyder claims that the company failed to perform its obligations under its whitepaper by issuing a larger amount of tokens than originally announced and eventually …

In 2019, the total volume of cryptocurrency-related fraud and theft resulted in losses worth $4.4 billion, according to CipherTrace’s report for the third quarter of 2019. In its “Cryptocurrency Anti-Money Laundering Report, 2019 Q3,” security research firm CipherTrace delved into the 120 most popular cryptocurrency exchanges’ compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements and analyzed patterns in crypto-related crimes. Decline in crypto crime volume and weak KYC standards Per the report, Q3 2019 saw a notable reduction in total cryptocurrency crimes as compared with previous quarters, and thus the lowest quarterly thefts and scams in two …

89% of China’s blockchain firms have allegedly tried to create their own cryptocurrency, according to a senior exec at a local blockchain association. According to the state-run CCTV on Nov. 21, Yedong Zhu, the president of the Beijing Blockchain Technology Application Association (BBAA), revealed that the vast majority of blockchain industry in China is focused on tokens, not blockchain. In addition to Zhu’s remarks, the report by CCTV covered a new study led by the People’s Bank of China (PBoC). Co-authored by five local financial and technology authorities, the “Bluebook on Blockchain” report reveals that there are 28,000 blockchain enterprises …

The New York Southern District Court has ruled in favor of the United States government to intervene in a civil case against Jon Barry Thompson, who is alleged of a $7 million Bitcoin (BTC)-related fraud. With Judge Loretta A. Preska’s ruling on Nov. 19, the U.S. government — in this case, represented by the Commodity Futures Trading Commission (CFTC) — now has the right to intervene in civil proceedings that are running parallel to a criminal multimillion Bitcoin scam case. Thompson, a resident of Easton, Pennsylvania, is charged with “knowingly or recklessly making false representations to customers in connection with …

The Royal Dutch Football Association (KNVB) trialed a new blockchain-based ticketing app during yesterday’s Netherlands-Estonia European Championship qualifying match. The news was reported by Ajax Life, a fanzine associated with the top tier Dutch football club AFC Ajax, on Nov. 19. Replacing tickets with an app Yesterday’s match was hosted at the Johan Cruijff Arena in Amsterdam, which the Netherlands won 5-0, as the BBC has reported. According to Ajax Life, the KNVB used the event as an opportunity to trial its new blockchain-based app, designed to combat ticket counterfeiting and black market sales. The solution dispenses with ticket PDFs, …

The United States has extradited a Swedish national from Thailand for allegedly selling fraudulent securities to investors online, garnering over $11 million worth of Bitcoin (BTC). Per a press release from the U.S. Department of Justice (DoJ) published on Nov. 18, Roger Nils-Jonas Karlsson is on his way to the U.S. to stand trial on behalf of himself and his company, Eastern Metal Securities. The indictment According to the DoJ, Karlsson was arrested on June 17. On July 25, a U.S. federal grand jury indicted Karlsson on charges of alleged securities fraud, wire fraud and money laundering. Karlsson allegedly used …

The United States Department of Justice has arrested and charged two Massachusetts men for allegedly taking over victims’ social media accounts and stealing cryptocurrency. According to the announcement on Nov. 14, the two — Eric Meiggs and Declan Harrington — were charged with one count of conspiracy, eight counts of wire fraud, one count of computer fraud and abuse and one count of aggravated identity theft. Attempt to steal over $550,000 in crypto The Massachusetts residents were allegedly targeting executives of cryptocurrency companies thought to own significant amounts of cryptocurrency and have high-value social media accounts. Meiggs and Harrington allegedly …

Konstantin Ignatov, co-founder of alleged crypto scam OneCoin, has pleaded guilty to participation in the multi-billion dollar fraud. According to a BBC report on Nov. 14, Ignatov signed a plea on Oct. 4 and now faces up to 90 years in prison. The news was made public on Nov. 12, the BBC says. After being arrested at Los Angeles International Airport in March 2019, Ignatov pleaded guilty to several charges, including money laundering and fraud. While facing up to 90 years behind bars, he has yet to be sentenced and will reportedly not face further criminal charges for his role …

Dutch police have arrested the founder of blockchain game development startup Komodore64 that allegedly raised 78 million euros ($86 million) from investors, business-focused news outlet Sprout reported on Nov. Komodore64 — which launched in June with the objective to create a game platform where transactions are tracked on blockchain — appeared to be a fraudulent scheme that deceived both investors and its own employees. The project and its native crypto coin K64, which have reportedly secured roughly $86 million in investments, have declared bankruptcy. Involvement of a “well-known investment company” Komodore64’s founder Sam N. allegedly lured investors claiming that the …

Experts allege the biggest hurdle facing the blockchain systems being adopted by food retail giants such as Walmart and Nestlé has nothing to do with the technology itself. In an interview with Tech Wire Asia, published on Nov. 7, Craig Heraghty — Agribusiness Leader at “Big Four” auditor PwC — reflected on the rising trend of blockchain among major retailers globally. He argued that: “The weakest link in the chain is not blockchain or any technology, the weakest link is the piece of sticky tape that puts the label on the package. You have to think like a fraudster and …

The Office of United States Immigration and Customs Enforcement’s Homeland Security Investigations and prosecutors for the Southern District of New York have indicted a man for allegedly participating in a cryptocurrency scheme dubbed Igobit. According to an announcement on Nov. 6, Asa Saint Clair was charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison if convicted. Used clients funds for dinners at Manhattan restaurants The document states that, from 2017 through September 2019, Saint Clair solicited investors to be part of Igobit by World Sports Alliance, a purported intergovernmental organization focused on …

Belgium’s Financial Services and Markets Authority (FSMA) has made an additional update to its blacklist of cryptocurrency-related websites associated with fraud. On Oct. 29, Belgium’s financial watchdog updated its list of cryptocurrency trading platforms for which it has detected indications of fraud, by adding nine new suspect sites, bringing the total of suspected crypto scams to 131. The financial authority said that it continued to receive new complaints from consumers who made crypto investments on those trading platforms, adding that cryptocurrency fraud continues to find new victims in Belgium, despite prior warnings. The FSMA has issued previous warnings to Belgian …