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As regulatory scrutiny intensifies, crypto industry executives are increasingly finding themselves entangled in legal battles. The recent case involving prominent crypto entrepreneur Sam Bankman-Fried (SBF) has further highlighted the challenges faced by individuals at the forefront of the digital asset revolution. Let’s take a deep dive into the top 10 high-profile crypto fraud cases so far. Do Kwon and the collapse of Terra In March 2023, Do Kwon, the co-founder of Terraform Labs, a Singapore-based blockchain platform, was arrested in Montenegro. Kwon, a South Korean national, was charged with fraud in the United States and indicted on eight charges, including securities fraud, wire fraud, commodities fraud, and conspiracy.  He had been a fugitive for several months, and South Korean authorities issued an arrest warrant for him in September 2022. Kwon was detained by Montenegro police at Podgorica airport while trying to board a flight to Dubai with another South Korean cit...

In 2023, the majority of CFTC’s whistleblower awards involved crypto fraud schemes, said Christy Goldsmith Romero, a commissioner of the regulator. As the crypto market remains the top spot for malicious actors and hackers, the U.S. Commodity Futures Trading Commission (CFTC) continues to double down on the area with its whistleblower program. In a statement on Oct. 31, CFTC Commissioner Christy Goldsmith Romero said most of the agency’s $16 million awards this year involved crypto . She particularly noted the $15 million the agency awarded to “two whistleblower s who provided significant information and assistance that led the CFTC to bring separate successful enforcement cases.” It is unclear if those cases had anything to do with crypto , though. “With the rise of crypto , more retail customers have come under the CFTC’s jurisdiction, making even more critical the efforts of the CFTC’s Whistleblower Program and the Office of Customer Education and...

Lawyers representing Sam Bankman-Fried have rejected a request from prosecutors to let a Ukrainian client of FTX testify via video link in a trial set to commence today, on Oct. 3. On Sep. 30, prosecutors filed an appeal with Judge Lewis A. Kaplan, seeking to overturn the opposition and enable two-way video conferencing for testimony , given that the majority of FTX’s customers and victims are located outside the U.S. One client from Ukraine, known as “FTX Customer-1,” is unable to travel due to the country’s wartime laws. Prosecutors argue that even if the client were permitted to travel, the journey to the United States would be perilous and time-consuming, taking at least three days each way through a war-ravaged country. You might also like: SBF’s father was unhappy with $200k salary at FTX Bankman-Fried’s lawyers are wary of the potential impact of the testimony on the jury, given the ongoing Russian invasion of Ukraine. They argue that ...

Vermont issued the investor alert after a 74-year-old man lost his life savings of over $340,000 in a crypto fraud orchestrated over Instagram and Telegram. The Vermont Department of Financial Regulation (DFR) — the United States state of Vermont’s financial regulatory agency — warned citizens against rising crypto investment frauds perpetrated over popular social media sites. On June 25, 74-year-old Naum Lantsman lost his life savings of $340,000 to a crypto scam orchestrated over Instagram and Telegram. The DFR referenced the incident as it emphasized “the need for Vermonters to exercise extreme caution and vigilance when using or investing in cryptocurrency.” A snippet of Vermont’s investor alert against crypto scams. Source: dfr.vermont.gov Instagram has been rated as the top platform connected to crypto fraud by the Federal Trade Commission (FTC), which is also true for Lantsman. His initial contact with the crypto scammer happened over Instagram, wherein he came across a post fr...

Sam Bankman-Fried’s FTX exchange appeared to be functioning normally from the outside. However, when the exchange started to have liquidity problems, Sam Bankman-Fried’s empire fell. The fall of FTX affected numerous companies and sent shockwaves through the cryptocurrency community. After that, FTX declared bankruptcy, and SBF resigned as CEO. According to the latest report from Reuters, Sam Bankman-Fried ’s lawyers requested that a US judge not ban SBF from communicating with his ex-colleagues. The request stated that “the prosecutors tried to sandbag him.” Read more: Is Bitcoin Likely to Close at Its Highest Price Since August 2022? Source: Timesnext Sam Bankman-Fried’s lawyer’s response is regarding prosecutor’s request The request by SBF’s lawyers was in response to the federal prosecutor’s request to not allow SBF to communicate with the employees of Alameda or FTX. The request also urged the necessi...