Crypto fraud – The Shib Daily

Meta Adds WhatsApp and Messenger Warnings to Protect Seniors from Online Scams

Michaela — Thu, 23 Oct 2025 10:21:27 +0000

Meta, the parent company of WhatsApp and Messenger, has rolled out enhanced scam detection features aimed at protecting older users from online fraud.

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Key points:

Meta has introduced new scam detection features on WhatsApp and Messenger, including screen-sharing warnings and AI-assisted chat reviews, targeting older users.
Since early 2025, Meta has disrupted nearly 8 million scam-linked accounts and acted against 21,000+ pages impersonating customer support.
Meta’s efforts aim to safeguard vulnerable users, particularly seniors, by providing clearer context to spot scams and recommended actions like blocking or reporting suspicious accounts.

“Cross-border criminal networks continue to operate at scale globally and use sophisticated schemes to target people — including older adults — across many industries through messaging, dating apps, social media, crypto, and other apps,” Meta wrote in an official announcement.

Meta has introduced new screen-sharing warnings on WhatsApp, alerting users when attempting to share their screen with unknown contacts during video calls. The feature targets a common scam tactic in which fraudsters pressure victims to reveal sensitive information, such as bank details or verification codes. According to Meta, the warnings aim to provide users with clearer context to recognize and avoid potential scams.

On Messenger, Meta is piloting enhanced scam detection within chats. When activated, the system alerts users if a new contact sends a message that appears suspicious and offers the option to submit recent chat activity for AI review. If a potential scam is identified, the platform provides guidance on common scam tactics and recommends steps such as blocking or reporting the account.

Meta reported that since the beginning of 2025, its team has identified and disrupted nearly 8 million accounts linked to scam operations in countries including Myanmar, Laos, Cambodia, the United Arab Emirates, and the Philippines. The company also took action against more than 21,000 Pages and accounts impersonating customer support, which were attempting to deceive users into revealing personal information.

Efforts across the online community are increasingly focused on safeguarding the most vulnerable users, particularly older adults and children, from digital threats. As part of efforts to safeguard children online, Governor Gavin Newsom signed Senate Bill 243 into law on October 13, enhancing California’s digital protections and establishing new regulations for emerging technologies, including artificial intelligence.

The legislation mandates digital platforms implement age verification, protocols for self-harm and suicide, warnings for social media and AI chatbots, and imposes tougher penalties for monetizing illegal deepfakes.

As technology evolves and online scams become more sophisticated, it is increasingly important for capable organizations and individuals to protect less tech-savvy users, educating them about potential threats and helping them navigate digital risks safely.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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Denver Pastor Ordered to Repay $3.39M After Defrauding 600 Church Members

Michaela — Thu, 18 Sep 2025 11:01:40 +0000

Denver pastor Eligio “Eli” Regalado Jr. and his wife, Kaitlyn, have been ordered to repay $3.39 million after a Denver court found their INDXcoin venture defrauded hundreds of church members and Christian investors, violating Colorado securities law.

Key points:

A Denver court ordered Pastor Eli Regalado and his wife Kaitlyn to repay $3.39M after ruling their INDXcoin crypto scheme defrauded church members and Christian investors.
The couple allegedly misled over 300 people between 2022 and 2023, hiding an auditor’s “0/10” security rating while promoting INDXcoin as safe and profitable.
Court filings revealed they used investor funds to finance luxury spending, while their exchange, the Kingdom Wealth Exchange, collapsed after just one day.

In a press release, the Denver District Court confirmed that Judge Heidi Kutcher issued the ruling after a three-day bench trial in May 2025. The court entered a joint and several judgment of $3,339,422.15 against Regalado, his wife Kaitlyn, and other associated defendants.

The case originated in January 2024 when Colorado Securities Commissioner Tung Chan filed civil fraud charges against the defendants. In the complaint, Chan alleged that the Denver pastor and his wife created, promoted, and sold a worthless digital token known as INDXcoin.

Between June 2022 and April 2023, INDXcoin raised nearly $3.4 million from more than 300 investors. According to Commissioner Chan’s complaint, the Regalados allegedly targeted Denver’s Christian communities, using false claims and key omissions to persuade individuals to invest in the scheme.

It was further revealed that the Denver pastor and his wife had no prior experience in cryptocurrency, a fact spotlighted by an auditor’s assessment that gave their token a security code score of zero out of ten.

The Regalados did not disclose this report to investors and instead marketed INDXcoin as a low-risk, high-return opportunity. They also promoted trading on their own platform, the Kingdom Wealth Exchange, which collapsed just one day after launching.

Furthermore, court documents state that the Regalados had no other source of income during the period in question and allegedly diverted investor funds to sustain a lavish lifestyle. The couple is accused of spending the money on jewelry, designer clothing, dental procedures, luxury ski and yachting vacations, and the purchase of a Range Rover.

In April 2025, the Denver District Court issued a summary judgment siding with Commissioner Tung Chan, ruling that the investments sold by the defendants qualified as securities under the Colorado Securities Act. The court’s latest decision, finding that the Denver pastor and his wife fraudulently marketed and sold those investments, resolves all remaining issues in the civil case brought forward by the commissioner.

“The Regalados are 21st century false prophets who leveraged the new and promising technology of cryptocurrencies to run an old-fashioned scam, victimizing their own congregants and others,” Commissioner Chan stated.

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Fenwick & West Denies Role in FTX Fraud — Lawsuit Seeks Dismissal

Michaela — Thu, 28 Aug 2025 09:51:43 +0000

Summary: What is Fenwick & West’s response to the FTX fraud lawsuit?

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U.S. law firm Fenwick & West, known for its work with technology and life sciences companies, has rejected claims in an updated class-action lawsuit alleging it played a key role in the collapse of crypto exchange FTX.

In an August 25 court filing, Fenwick & West formally opposed a motion from FTX users seeking to update their lawsuit against the firm. The plaintiffs argued that new details from ongoing bankruptcy and criminal proceedings indicated Fenwick played a central role in facilitating the fraud behind FTX’s collapse. The law firm rejected these claims, maintaining that the allegations misrepresent its involvement.

In the filing, Fenwick & West urged a Florida federal judge to reject FTX users’ request to amend the lawsuit, contending that the allegations of the firm’s involvement in the FTX fraud “are as simplistic as they are misguided.”

Fenwick & West maintained that it cannot be held responsible for aiding a fraud it had no knowledge of, emphasizing that the claims rely solely on the firm performing standard legal services routinely provided to clients.

In early August, FTX users alleged that Fenwick & West had direct knowledge of the FTX fraud, provided “substantial assistance,” and acted as a key participant in the FTX enterprise, violating federal racketeering laws. The plaintiffs also claimed the firm facilitated the sale of “unregistered securities” in breach of Florida and California state laws.

FTX customers further claimed that Fenwick & West knowingly set up, managed, and represented conflicted entities, including Alameda Research and its subsidiary North Dimension, allegedly without implementing safeguards to prevent the misappropriation of billions of dollars.

The latest claims against Fenwick & West arise from a broad class-action lawsuit filed by FTX users after the exchange’s 2022 collapse. The suit also targeted other firms and celebrities, including Sullivan & Cromwell, which was later dropped for lack of evidence.

Fenwick argued the updated complaint relies on outdated information, mirrors dismissed allegations against Sullivan, and offers no credible basis for holding the firm liable. The law firm emphasized that FTX’s lead engineer, Nishad Singh, only confirmed Fenwick advised on standard founder loans, and dozens of trial witnesses testified that FTX’s fraud occurred without the knowledge of its lawyers, executives, or outside counsel.

The court has yet to rule on Fenwick’s motion, leaving the fate of the updated allegations uncertain and emphasizing the ongoing legal ripple effects from FTX’s collapse.

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FBI Recovers $8M Stolen in Kansas Bank Crypto Fraud

Vanessa — Fri, 04 Apr 2025 10:02:24 +0000

The FBI has recovered $8.2 million stolen in a cryptocurrency scheme that led to the collapse of Heartland Tri-State Bank in Elkhart, Kansas, returning the funds to local shareholders nearly a year after the Kansas bank crypto fraud issue was uncovered.

The bank’s former CEO, Shan Hanes, was sentenced to 24 years in prison in 2024 after siphoning $47 million into a crypto investment scam, as previously reported by The Shib Daily.

While customer deposits were federally insured, about 30 shareholders — many of them farmers and small-business owners — lost their life savings when the bank failed.

Investigators traced the stolen funds to an offshore cryptocurrency wallet and seized them, an uncommon outcome in digital financial crimes. “To be able to give them back their money is extremely powerful,” said Emilee Thompson, a forfeiture specialist with the FBI’s Kansas City office.

The recovery marked an emotional moment for victims, who learned at a federal restitution hearing in November that most of their losses would be restored.

“There was cheering and clapping and crying,” said Special Agent Sage Hemmert, who led the case.

The Kansas bank crypto fraud case highlights the growing threat of cryptocurrency fraud, which resulted in $5.6 billion in reported losses in 2023, according to the FBI in its press release. It also signals law enforcement’s increasing ability to track illicit digital transactions, setting a precedent for future financial crime investigations.

Vanessa has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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Fraud Alert: Fake China Construction Bank Sites Target Hong Kong Users

Vanessa — Thu, 14 Nov 2024 14:40:38 +0000

The Hong Kong Monetary Authority (HKMA) has issued a public warning about fraudulent websites impersonating China Construction Bank (Asia) Corporation Limited, urging residents to exercise caution and report suspicious activities.

In a recent press release, the HKMA highlighted a surge in fake websites mimicking the bank’s official online platform. These fraudulent sites aim to deceive users into providing sensitive personal or financial information. The HKMA advised against engaging with any platform that requests personal details, particularly through emails, SMS, or phone calls containing suspicious hyperlinks. The authority emphasized that legitimate banks do not request passwords, One-Time Passwords, or other sensitive data via these methods.

For those who may have inadvertently interacted with these sites, the HKMA advises contacting China Construction Bank using verified contact details and reporting any suspected fraud to the Hong Kong Police Force’s Crime Wing Information Centre.

The warning comes as Hong Kong faces a growing wave of sophisticated cyber scams. Recently, the Hong Kong Police Force (HKPF) dismantled a massive fraud center in Hung Hom, where perpetrators used advanced “deepfake” technology to orchestrate romance scams via a fake cryptocurrency investment platform. That operation defrauded victims worldwide of HK$360 million (about $45.93 million USD), underscoring the scale of cross-border fraud in the region.

The HKMA’s advisory is part of broader efforts to combat online scams and enhance public awareness. The authority regularly updates a dedicated section on its website with information on phishing, fraudulent bank websites, and other cyber threats. The HKMA encourages residents to remain vigilant, verify the authenticity of communications from banks, and stay informed to mitigate the risks associated with online fraud.

Vanessa has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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The Shib Crypto Recap: Wednesday

Malaya Ruiz — Wed, 23 Oct 2024 21:00:00 +0000

As Wednesday unfolds, the top news headlines are dominated by the latest developments in global cryptocurrency trends, alongside legal and financial consequences stemming from incidents of fraud and corruption in the industry. With mounting pressure on lawmakers and regulators, the discourse surrounding crypto regulations is heating up, which reflects broader concerns about accountability and transparency in the digital asset space.

Banning Private Cryptos? India Explores Safer Alternatives with CBDCs

The Indian government is considering banning private cryptocurrencies, including Bitcoin and Ether. Key experts argue that the risks of these assets far exceed their benefits. They argue that Central Bank Digital Currencies (CBDCs) can provide similar functionalities with reduced risks. Officials are also optimistic about using blockchain technology for positive social applications like tokenizing government securities. They see great potential for CBDCs in both domestic and international transactions.

The government plans to expand CBDC use after studying data from pilot projects. The final stance on private cryptocurrencies will be decided after extensive discussions with stakeholders.

France’s Red Card Scandal Exposes €28 Million Crypto and Diamond Fraud

A French conference center will host a trial with over 20 defendants accused of defrauding 1,300 victims of €28 million (about $30.52 million). Dubbed the Red Card Scandal, the fraud involved fake cryptocurrency investments and diamond savings schemes. The defendants have reportedly scammed people for more than two decades, including football clubs. Many investors suffered major losses, with some even taking out loans to invest based on false promises of high returns. Twelve accused face charges of “criminal conspiracy,” while others are charged with gang fraud, which includes creating fake websites and selling counterfeit diamonds.

A Chainalysis report highlights that France is a leader in the growth of decentralized finance (DeFi) transaction volumes, especially during volatile market conditions.

Russia’s Rosfinmonitoring Launches Stricter Crypto Regulations

In Russia, Rosfinmonitoring has launched an initiative to improve financial intelligence. All trading platforms must register, obtain licenses, and collect client data, retaining transaction records for five years. They need to share this information with the government as well.

Lawyers are analyzing the probable effects of these regulations on the market. Dmitry Kirillov points out that this is consistent with a global trend to tighten control over cryptocurrencies, in line with FATF guidelines. Yuri Brisov warns that excessive regulation could split the market into legal and illegal parts. Kristina Mkrtchyan stresses the importance of balancing security with user data privacy.

Tether’s CEO Sounds Alarm: US Falling Behind in Crypto Regulation

At the DC Fintech Week conference, Tether CEO Paul Ardoino criticized the U.S. for its slow progress in cryptocurrency regulations. He expressed worry about the current regulatory framework, saying that the U.S. has always been a technology leader. However, he feels the country is “dropping the ball” on crypto policies for the first time ever. Some industry experts argue that unclear rules are pushing crypto firms out of the U.S. Ardoino also emphasized Tether’s dedication to transparency, stating the company will intensify its efforts because of past regulatory challenges.

Shibarium’s Resurgence: From Low Activity to 1.7 Million Transactions in Days

Meanwhile, in Shib news and updates, Shibarium has seen a significant increase in transactions, nearly hitting two million. On Tuesday, a sharp increase was noted following a period of low activity. Data from Shibariumscan showed that after negligible transactions from late September to mid-October, numbers jumped abruptly on Monday to about 400,000. This climbing trend continued, reaching a peak of 1.766 million transactions on Tuesday.

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Red Card Scandal: Trial Begins for 20 Defendants in €28 Million Scam

Gairika Mitra — Wed, 23 Oct 2024 15:20:44 +0000

A French conference center will host a high-profile trial where over 20 defendants face charges for allegedly defrauding more than 1,300 individuals out of €28 million (approximately $30.52 USD). The schemes in the so-called Red Card Scandal included fake cryptocurrency investments and deceptive diamond savings plans.

The defendants, who have reportedly been scamming people for more than two decades, are accused of orchestrating a wide-reaching international financial fraud. Among the victims are football clubs, which led to the case getting its name. The magnitude and complexity of the investment schemes have drawn global attention.

The trial’s move to a conference center was said to be necessary due to an overwhelming number of plaintiffs and witnesses. According to Colman, the law firm representing around 100 plaintiffs, some investors lost big chunks of their savings. They even contracted loans to invest in these schemes, drawn by promises of large annual returns.

The defendants’ strategy was multifaceted, with investigators revealing that they opened over 199 bank accounts across 19 countries to receive and transfer funds. Moreover, a side business for the accused involved swindling money out of French football clubs. Some who were based in Marseille and Israel posed as agents acting on behalf of professional players. This caused several top clubs to fall victim to the scam and hand over around €60,000.

Criminal Conspiracy in Fraud as France Leads in DeFi Growth

Twelve defendants are said to be charged with “criminal conspiracy,” mainly for allowing their names to be used in opening bank accounts that facilitated funds transfers. Others face charges of “fraud committed in a gang,” including those accused of creating fake websites or ordering counterfeit diamonds.

Colman’s firm said it is confident about the trial’s outcome, asserting that this will mark “a strong signal in the fight against international financial fraud.” A significant portion of the recovered funds, €2.8 million, is expected to be used to compensate victims for their losses.

As per a recent report by Chainalysis, France is a frontrunner in terms of the growth of decentralized finance (DeFi) transaction volumes. Notable spikes observed in November 2022 and May 2023 were largely influenced by market volatility linked to events such as the FTX collapse and the drop in value of Silicon Valley Bank and USDC, rather than by regulatory changes in Europe. Nevertheless, France’s growth during these times outpaced that of other countries, highlighting its robust presence in the DeFi sector.

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Leader of Massive Credit Card Fraud in Japan Arrested With Help of Crypto

Gairika Mitra — Tue, 22 Oct 2024 13:30:26 +0000

Japan’s National Police Agency, along with a joint investigation team from nine prefectural police forces, has arrested 26-year-old Yuta Kobayashi on suspicion of orchestrating a large-scale credit card fraud scheme. Kobayashi, believed to be the mastermind, allegedly used stolen credit card information to gain steal over 100 million yen.

This is the first time Japanese authorities identified a suspect through cryptocurrency analysis, specifically involving the high-confidentiality cryptocurrency Monero.

The Investigation and Arrest

Between June and July 2021, Kobayashi allegedly listed fictitious items for sale on the popular flea market app Mercari. He completed 42 fraudulent transactions totaling 2.75 million yen using stolen credit card information.

The operation reportedly extended far beyond, with investigators believing that Kobayashi’s group made approximately 900 fraudulent transactions using stolen credit cards between June 2021 and January 2022. The credit card information was likely acquired through phishing attacks, in which fake websites tricked users into sharing information.

Money Laundering and Credit Card Fraud Using Crypto

The group attempted to launder their illegal earnings through Monero, the cryptocurrency known for its strong privacy protections. However, authorities were able to trace the flow of the asset, ultimately leading to Kobayashi’s identification.

Kobayashi’s group allegedly recruited members for the operation through “illegal part-time jobs” advertised on social media platforms. The group maintained secrecy by using encrypted communication apps to plan and execute their crimes, making them part of what authorities describe as a “mobile crime group,” or criminals who gather and disband on social media.

The Joint Investigation Headquarters has so far arrested 18 individuals connected to Kobayashi’s operation. These are believed to have played various roles in executing the fraudulent transactions and laundering the stolen money. The Cyber Special Investigation Unit of the National Police Agency, which joined the investigation in August, played a key role in linking Kobayashi to the crimes through the analysis of communication records and virtual currency flows.

Rising Credit Card Fraud in Japan

This arrest comes at a time Japan is experiencing a sharp rise in credit card fraud. In 2021, the Japan Credit Association reported a record 54.09 billion yen in damages from credit card fraud, with over 90% of cases involving the theft of credit card numbers. In the first half of 2022, the amount of damage reached 26.82 billion yen, surpassing figures from 2021.

Authorities believe that tackling the use of cryptocurrencies in fraud cases is crucial to curbing the growing wave of financial crimes, especially as criminals turn to sophisticated methods to avoid detection.

Spot trading has also been popular in Japan. According to Statista, in August 2024, XRP led cryptocurrency spot trading volume in Japan with approximately 837.1 million units traded. Bitcoin, despite having the highest trading value for the month, saw a trading volume of about 130.6 thousand units.

Data until August 2024

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Indian National Faces Five Years in Jail for $20M Crypto Fraud

Gairika Mitra — Mon, 21 Oct 2024 15:36:04 +0000

A citizen of India has been sentenced to five years in prison for orchestrating a crypto fraud that stole over $20 million from hundreds of victims worldwide, including those in the United States.

U.S. District Judge Kenneth D. Bell handed down the decision to Chirag Tomar, 31, who also received two years of supervised release following his prison term. This was announced by Dena J. King, U.S. Attorney for the Western District of North Carolina.

The sentencing follows Tomar’s involvement in a sophisticated scheme where he and his co-conspirators created fake websites. They mimicked Coinbase, one of the largest cryptocurrency exchange platforms, to deceive victims into revealing their account details. “This sentencing demonstrates our commitment to bringing cybercriminals to justice, no matter where they operate,” said U.S. Attorney King.

Jason Byrnes, Special Agent in Charge of the U.S. Secret Service’s Charlotte Field Office, joined U.S. Attorney King in announcing the sentencing.

Crypto Fraud Scheme Targeted Global Investors

According to court documents, Tomar and his team began their fraudulent activities in June 2021, using a technique known as “spoofing.” Spoofing involves tricking victims by disguising malicious websites or emails to look like trusted sources. In this case, the group set up a fraudulent version of Coinbase’s “Pro” exchange platform. They used a similar web address, CoinbasePro.com, instead of the legitimate URL, Pro.Coinbase.com.

Victims who tried to access their accounts on the spoofed website received prompts to enter their login details, including two-factor authentication codes.

In many cases, the fraudsters also impersonated Coinbase customer service representatives to further manipulate victims into giving remote access to their computers or providing sensitive information over the phone. Once inside, the criminals swiftly transferred cryptocurrency from the victims’ legitimate Coinbase wallets to accounts they controlled.

Western North Carolina Victim Lost Over $240,000

In one incident in February 2022, a victim from North Carolina tried logging into his Coinbase account through the fraudulent website, then later found out that his account was locked. The fake website directed him to contact a so-called Coinbase representative, who tricked him into revealing his authentication codes. The scammers then accessed his account, stealing crypto valued at over $240,000.

In this case, once the stolen cryptocurrency was in their possession, Tomar and his associates converted it into other digital currencies and moved the funds between various wallets they controlled. Tomar eventually converted the stolen cryptocurrency into cash and used the funds to support his extravagant lifestyle, purchasing luxury watches, high-end vehicles like Lamborghinis and Porsches, and traveling to destinations such as Dubai and Thailand.

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NH Nonghyup Bank Manager Embezzles 12.1 Billion Won Using Fake Real Estate Loans

Gairika Mitra — Fri, 18 Oct 2024 15:09:52 +0000

An internal audit at NH Nonghyup Bank in Seoul has revealed that a branch manager embezzled 12.1 billion won (approx. $876,000) through fraudulent loans. The manager, identified as Kim, used fake real estate as collateral, exploiting weaknesses in the bank’s internal control system for over four years.

The bank’s headquarters detected the fraudulent activity in late August when they noticed suspicious loan activity at the Seoul branch.

The investigation found that Manager Kim secured a total of 17.1 billion won in loans over 106 occasions from June 2020 to August 2024. Kim used the names of acquaintances and created false documents, including forged copies of real estate registers.

Probe Reveals Systemic Weaknesses in NH Nonghyup Bank Security

Kim reportedly admitted to using non-existent real estate as collateral and confessed that he had lost all the money by investing in virtual currency.

“I received a loan using non-existent real estate as collateral,” Kim conceded during the investigation. “I invested in virtual currency but lost everything, so I have no money left.”

Of the 17.1 billion won in total loans, the bank confirmed that 12.1 billion won were illegal. NH Nonghyup Bank is now expanding the investigation to determine if other employees were involved.

“We will improve all the problematic areas,” a bank official stated. “We will continue to strengthen our system to prevent this from happening again.”

Ten years ago, the bank introduced a “roving auditor” system to prevent internal fraud. The bank designed the system to create a “dual internal control” structure by incorporating third-party auditors alongside regular audits.

However, the audit revealed that the roving auditors failed to detect Kim’s fraudulent activities, despite their responsibility to monitor such transactions daily. Nonghyup Bank’s roving auditors are all former employees of the bank, a fact that has drawn criticism from industry experts. Many believe this contributed to their inability to detect internal fraud.

Crypto Craze in South Korea Fuels Massive Market Growth

Cryptocurrency fever has taken hold of South Korea, with around 10 percent of the population investing in digital assets during Bitcoin’s record-breaking surge in early 2021. This marks a significant increase from 2017, when the crypto boom first hit the country.

South Korea now ranks as the third-largest cryptocurrency market globally, with much of its growth driven by cryptocurrency trading. This surge largely results from the ban on domestic Initial Coin Offerings (ICOs) and the small size of the country’s crypto asset management market.

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Ledger Wallet Users Targeted in Phishing Scheme to Activate Fake ‘Clear Signing’ Feature

Gairika Mitra — Wed, 16 Oct 2024 14:06:56 +0000

A new phishing campaign is targeting Ledger wallet users to trick them into activating a fraudulent security feature called “Ledger Clear Signing” and steal their cryptocurrency.

The deceptive emails, which do not originate from official Ledger addresses, claim that doing so is essential for the continued secure use of Ledger devices.

The emails contain a malicious link that directs recipients to a fake website, where they are prompted to enter sensitive information. One email states, “To continue using your Ledger device securely, activating Clear Signing is mandatory starting November 1, 2024. This feature is essential in protecting your assets from phishing attacks and fraudulent activities that are becoming more sophisticated.”

Thomas Roccia, a senior threat researcher at Microsoft, characterized the ongoing email campaign as a “very clean Ledger scam.”

Over $2.7 Billion Lost to Approval Phishing

Analytics platform Chainalysis highlighted the increase in phishing scams recently.

“Earlier this year, we reported that approximately USD $1 billion has been lost to scams leveraging approval phishing since May 2021. After identifying further illicit addresses, our data now reveals that over USD $2.7 billion has been lost to approval phishing – demonstrating that approval phishing is a much bigger problem than previously known. However, the inherent transparency of the blockchain paired with advanced blockchain analytics offers a range of opportunities for investigation, asset recovery and crime prevention,” it said.

In another report, Chainalysis identified a network of 1,013 addresses linked to targeted approval phishing, starting with a smaller list of known approval phishing addresses associated with romance scam tactics.

The firm estimates that victims connected to the initial list, along with those identified through their unique transaction patterns, have lost around $1 billion to approval phishing scams since the dataset began in May 2021. While this $1 billion figure is based on observed on-chain patterns and may include funds already controlled by the scammers, it represents just the tip of a much larger problem. Romance scams are notoriously underreported.

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Hong Kong Police Uncover $360M Global Crypto Fraud Ring

Gairika Mitra — Wed, 16 Oct 2024 13:45:08 +0000

In the heart of Hung Hom neighborhood in Hong Kong, police uncovered a massive cross-border fraud center responsible for defrauding victims worldwide of over HK$360 million (approximately $45.93 million USD).

The Hong Kong Police Force (HKPF) dismantled the operation, arresting 27 individuals aged between 21 and 34 years, for conspiracy to defraud and possession of offensive weapons. Described as unusually large and meticulously organized, the operation involved local university graduates, overseas fraudsters, and IT experts. They allegedly collaborated to create a fake cryptocurrency investment platform.

The scam employed a sophisticated “romance scam” strategy, using artificial intelligence-based “deepfake” technology to initiate virtual romantic relationships with victims online. The perpetrators produced training manuals in both Chinese and English. They even instructed recruits on how to engage potential investors through fake profiles, video chats, and convincing stories.

Sophisticated Scammers Target Victims Across Asia

The scam artists reportedly created a convincing digital facade with a website, social media accounts, and phone numbers, all designed to lure unsuspecting victims into investment scams. The criminals equipped their operation with sophisticated computer hardware and software, enabling them to create and manipulate virtual currency transactions.

The HKPF investigation revealed that the perpetrators were primarily male, with numerous victim profiles from mainland China, Taiwan, India, and Singapore. Scammers reportedly targeted victims through social media platforms and online ads claiming to be women seeking companionship or romantic relationships. Once established, the scam artists would convince victims to invest in cryptocurrencies through a fake platform, promising high returns with little risk.

The HKPF’s investigation found that the perpetrators were well-versed in IT and social engineering tactics. This is what made it difficult for law enforcement agencies to detect their activities. For this reason, the police is working closely with international authorities to dismantle this fraud center and bring the culprits to justice.

Hong Kong’s Thriving OTC Crypto Market Drives Institutional Activity

Hong Kong has been known for its industry-friendly regulations in relation to cryptocurrencies.

A Chainalysis report reveals that the OTC market has a major role to play in this regard. “Much of this is driven by Hong Kong’s highly active OTC market. OTCs, or “over-the-counter” trade desks, typically facilitate large transfers for institutional investors and high net worth individuals, which are conducted privately so as to not affect asset prices or broadcast traders’ activity.

Hong Kong’s skew toward OTC activity manifests in the city’s breakdown of transaction volume by transaction size, which we show on the chart below alongside that of its regional neighbors and the overall global average,” said the report.

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Ground Zero: Southeast Asia’s Dark Underbelly of Virtual Asset-Related Crimes

Malaya Ruiz — Fri, 11 Oct 2024 19:08:22 +0000

The United Nations Office on Drugs and Crime (UNODC) recently highlighted the increasing use of cryptocurrency and similar high-risk virtual assets in facilitating criminal activities across Southeast Asia.

In its latest report, the UNODC detailed how various criminal organizations are using virtual asset service providers for money laundering, drug trafficking, and other illicit activities. This scenario underscores the urgent need for regulatory frameworks to mitigate such risks.

Southeast Asia: The Emerging Epicenter of Virtual Asset-Driven Crime Amid Technological Gaps

The report makes it clear that the use of virtual assets is becoming widespread in Southeast Asia. However, it is not always for good reason. Top-secret criminals are capitalizing on an underground network that includes unregulated casinos and illegal gambling platforms that use cryptocurrency. This growth enables criminal activities without any oversight.

Furthermore, the anonymity of cryptocurrencies and the rapid growth of digital finance have created a conducive environment for crime. Southeast Asia is particularly vulnerable because regulations often lag behind in technological advancements. The report points out that criminals take advantage of these gaps. They make use of high-risk virtual asset providers (VASPs) to hide the sources of their illegal gains.

The pandemic has led to a significant rise in illegal cyber activities. Countries in the Mekong region—Myanmar, Cambodia, and Laos—are now prime locations for crime syndicates. They engage in romance investment schemes, cryptocurrency fraud, money laundering, and illicit gambling activities.

The Human Cost of Crime: Forced Labor and Exploitation in Southeast Asia’s Criminal Landscape

Those are not the only countries connected to the criminal underworld of Southeast Asia. Devastatingly, in some parts of the region, these criminal financial groups carry a significant human toll. The best example is the case of Philippine Offshore Gaming Operations (POGOs). Some of these establishments, while licensed by the government, mask love and cryptocurrency scams that exploit workers.

In July, Benedikt Hofmann, the UNODC Deputy Regional Representative for Southeast Asia and the Pacific, revealed the presence of a scam farm north of Manila, the capital of the Philippines. One of the buildings houses the gambling operations. While officially registered and monitored by regulators, the intermediary structures—invisible on official records—are where much of the exploitation occurs.

“The scale and sophistication of the compound is surprising. This does not look very different from a well-established tech company. Some 700 people were discovered on this compound when it was raided in March…,” Hofmann said. He remarked on a striking contrast. Many people were compelled to live and work there, while those in charge of the compound possess great wealth.

Former Bybit manager Abhyudoy Das shared a report on X, which revealed that thousands of Indian nationals fall for fake job offers. They end up trapped within cyber slavery and cryptocurrency fraud schemes in Southeast Asia. These individuals frequently face pressure to engage in scams such as crypto fraud, phishing, and pig butchering. Many of these scams specifically target victims in their home country of India. They find themselves forced to impersonate law enforcement to extort money from drug parcel scams. An estimated 45% of cybercrimes against Indians reportedly originate from Southeast Asia.

Southeast Asia’s Battle Against the Escalating Threat of Virtual Asset-Related Crimes

Reflecting on this grim situation, UNODC Regional Representative Masood Karimipour offered insights into the intensifying risks of Southeast Asia being the ground zero for scams related to virtual assets. He emphasized how vital it is to understand the magnitude and global implications of this threat.

Southeast Asian criminal organizations are increasingly involved in virtual asset activities. This poses a major threat to stability and security in the region, according to the UNODC. As money laundering, drug trafficking, and illegal gambling flourish within an environment of inadequate regulation, the exploitation of individuals caught in these operations has reached alarming levels.

Countries like the Philippines exemplify the dark side of this trend, where licensed gambling operations often serve as fronts for more sinister activities. In light of these findings, there is a need for urgent action to curb the crime wave involving virtual assets and protect those affected by these ruthless syndicates.

ShibaCon, a vision of Shiba Inu creator Ryoshi, is set to make history in Thailand. Join the movement and be part of this landmark event in November. Tickets are available now at shibacon.shib.io.

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The Shib Crypto Recap: Thursday

Malaya Ruiz — Thu, 10 Oct 2024 20:41:01 +0000

The Shib Daily’s crypto news this Thursday is rife with discussions about security risks, regulatory and law enforcement challenges, and the ongoing saga of exchange-traded fund (ETF) applications. This intricate mosaic of challenges serves to illuminate the unpredictable nature of cryptocurrencies and captures the essence of a market that is as volatile as it is revolutionary.

Feds Strike Back: 15 Charged in $25 Million Crypto Fraud Operation Using Fake Token

On Wednesday, federal prosecutors charged several cryptocurrency companies and 15 individuals in a $25 million fraud scheme. The charges were the result of an FBI operation in which a fake digital token was created to track illegal activities in the crypto space. Multiple top executives were arrested, and $25 million worth of cryptocurrency was seized. They were implicated in “pump and dump” tactics, artificially increasing prices through wash trading before selling to naive investors.

The operation was named “Operation Token Mirrors” and targeted companies like Gotbit, ZM Quant, and CLS Global for manipulating trading volumes. The token, called NexFundAI, was used to entice suspects into fraudulent actions. According to officials, the aforementioned entities collaborated to manipulate this token on the Ethereum blockchain. Acting U.S. Attorney Joshua Levy said this situation represents the convergence of innovative technology, including cryptocurrency, with classic fraud schemes, pointing out that the defendants’ primary goal was to con investors.

SEC Chair Gensler Doubts Long-term Viability of Digital Currencies

SEC Chair Gary Gensler recently expressed concerns about the future of cryptocurrencies as global currencies. He questioned the long-term viability of Bitcoin and other digital currencies for payments and value storage. The SEC encourages public evaluation via disclosures to assess practical utility. However, Gensler indicated that cryptocurrencies are unlikely to replace traditional currency anytime soon. He said their value must be demonstrated through real-world use and transparent practices like stock evaluations. He also acknowledged the issue of fraud in the crypto industry but refrained from discussing the potential impact of the presidential election on the SEC or his position if Trump is re-elected.

Irish Drug Dealer’s $380 Million Bitcoin Fortune Locked Away—Authorities Stymied

Over $380 million in Bitcoin seized from Irish cannabis dealer Clifton Collins is still out of reach for authorities. The Criminal Assets Bureau (CAB) holds the digital assets in 12 wallets but cannot access them. Since 2019, they have struggled to trace and recover the Bitcoin. Collins bought it years ago when it was worth very little, unknowingly making a great investment. He distributed his Bitcoin across various wallets and stored the access codes in a document he later lost during a break-in. Recently, the CAB reported recovering $1.3 million worth of assets from him, including 89 Bitcoin. The situation is ironic, as Collins forfeited some Bitcoin, yet a much larger amount remains inaccessible.

Beware: $2.23 Million Vanishes in Ethereum Phishing Attack

An Ethereum phishing attack has led to a loss of about $2,230,000. The victim signed a malicious transaction after connecting with a fake address. As a result, a large amount of Ethereum-based assets was sent to an address known as Fake_Phishing504944. Such phishing attacks take advantage of users by creating deceptive smart contracts or addresses, resulting in devastating financial losses.

Canary Capital Files for Spot XRP ETF Amid SEC Uncertainty

Canary Capital has joined the race for cryptocurrency ETFs by filing for a spot XRP ETF. The ET F intends to offer investors XRP exposure without direct holdings. Nevertheless, approval is uncertain due to the SEC’s ongoing legal challenges regarding XRP. Experts like Alex Thorn express doubts about the ETF’s success if the SEC continues its appeal against Ripple. Bloomberg analyst Eric Balchunas highlights that political factors, like the 2024 elections, could influence decisions on XRP ETFs. In contrast, Nate Geraci from the ETF Store is optimistic, believing approval is inevitable, though regulatory clarity might be slow. The resolution of the SEC’s case against Ripple is viewed as essential for moving forward with XRP ETFs.

The post The Shib Crypto Recap: Thursday first appeared on The Shib Daily.

The Shib Crypto Recap: Wednesday

Malaya Ruiz — Wed, 09 Oct 2024 19:44:06 +0000

We have arrived at the mid-week analysis of the cryptocurrency sector. Today, The Shib’s news roundup highlights corruption within law enforcement, high-profile crypto schemes, personal and community impact of crypto scams, and shifting trends in the global crypto landscape.

Bitcoin Bribe Exposed: Former Chief Investigator Sentenced to 16 Years

A former chief investigator in Russia, Marat Tambiyev, has been sentenced to 16 years in prison for accepting a Bitcoin bribe worth $65 million from hackers. His case is part of a major corruption scandal within the Investigative Committee of Russia. Investigations into Tambiyev began last year and uncovered his acceptance of bribes from the Infraud Organization. This issue highlights the ongoing corruption in Russian law enforcement agencies that struggle against cybercrime. A colleague of Tambiyev’s was also arrested.

The bribe, conducted via anonymous Bitcoin transactions, marks one of the largest ever for a Russian official. The hackers sought to pay Tambiyev to prevent the confiscation of their illegal assets, with evidence of his corruption dating back several years.

‘Crypto Queen’ in Russia Faces Allegations of Crypto Fraud and $1 Million Cash Transfers

Valeria Fedyakina, known as the “Crypto Queen” or “Bitmama,” is being investigated for cryptocurrency fraud in Russia. She allegedly handled large cash transfers via Bitcoin, taking money from clients and transferring it primarily to Dubai. An exposé by Russian TV channel Vesti showed videos of her with suitcases full of cash related to her schemes. Authorities allege she provided crypto exchange services, with one victim stating she assured them of secure cash transfers to her Dubai office. Reports indicate that suitcases could carry as much as $1 million for these exchanges. Fedyakina also allegedly persuaded affluent clients to invest in non-existent projects, including Dubai hotels and oil businesses. She faces a potential 10-year prison sentence if found guilty.

Fraudulent Crypto Schemes on the Rise: KOK Token and La China Leave Thousands of Investors Reeling

Chosun Ilbo, the largest newspaper in South Korea, is accused of promoting a cryptocurrency scheme that resulted in nearly $3 billion in losses. A post from IBC Group on X claimed that subsidiaries of the paper gave the KOK token positive reviews and accolades, misleading many investors into thinking it was a safe option.

A disgruntled investor who lost $100,000 in the KOK token coverage by the newspaper gave them the false impression that it was a credible investment. The KOK token has dropped from a high of 6.83 to just 0.0003, and investors are now demanding answers. The newspaper has not yet commented on the situation.

Meanwhile, in San Pedro, Buenos Aires, approximately 20,000 residents became victims of a pyramid scheme called La China, which is reportedly associated with the Knight Consortium Foundation. This scheme promised quick high returns through fake cryptocurrency investments, which turned out to be a classic pyramid selling model. At least 50 victims have asked for legal assistance due to potential losses. The scam began with a viral ad that claimed returns of up to 2% daily in U.S. dollars. The community is left dealing with the aftermath and questioning the legitimacy of the foundation.

Canine Craze: SHIB and BONE Lead “Dog Week” Hype as Analyst Predicts Major SHIB Price Breakthrough

Shiba Inu (SHIB) and Bone ShibaSwap (BONE) are gaining popularity among crypto enthusiasts as leading “Hype Tokens” during a week of canine-themed assets. Cryptocurrency exchange ChangeNOW announced the trending tokens on X, referring to the event as “Dog Week.” In this spotlight, SHIB ranked first while BONE, the governance token for ShibaSwap and the gas fee token of Shibarium, scored the third place.

More positive news sees SHIB possibly sitting on the brink of a major price breakout, according to well-known crypto analyst Crypto Sheriff. In a recent post, they claimed, “SHIB breakout loading,” and included a supporting chart. Their analysis referenced SHIB’s recent interactions with a declining trendline. The Binance exchange chart showed that SHIB’s price tested and eventually broke above this trendline. Such a pattern is often regarded by traders as a sign of bullish momentum, which suggests that SHIB has overcome recent selling pressure and could see a notable price increase. The chart’s indication of a rise in trading volume during the breakout adds further weight to this optimistic prediction for SHIB.

The post The Shib Crypto Recap: Wednesday first appeared on The Shib Daily.

Crypto Pyramid Scam Dupes Thousands of San Pedro Residents

Gairika Mitra — Wed, 09 Oct 2024 10:50:25 +0000

As many as 20,000 San Pedro residents have fallen victim to a crypto pyramid scheme called La China, which promised significant short-term returns from what are now known as fake cryptocurrency investments.

Lawyer Adolfo Erdaire noted on Tuesday that the first complaints will be filed soon. “La China” — which has ties to the Knight Consortium Foundation — has left many San Pedro residents in a financial tailspin. They invested all their savings into what seemed like an opportunity of a lifetime.

However, it soon became clear that this scheme was merely a classic pyramid. Here, the scammers collected from new investors and paid out to early adopters. At least 50 victims have already sought legal advice, as the pyramid’s collapse threatens to wipe out their hard-earned assets.

Crypto Pyramid Scheme Leaves Residents in Financial Turmoil

The scam reportedly began with a viral online ad, where the Knight Consortium promised returns of up to 2% per day in U.S. dollars. As it gained popularity on the Internet, many residents joined on their own accord, lured by the promise of easy money.

Its collapse left San Pedro in chaos. “There are people who have not been able to withdraw money for three weeks, and because they have not been able to do so, they are worried and that worry has turned into fear,” Erdaire said.

Erdaire’s team will be filing a complaint citing alleged fraud under 171 and 173 of the criminal code. They will investigate whether there are any criminal offenses related to biometric data collection. They will also strive to determine who is responsible for the audio recording, in which an individual claims they cannot withdraw funds because of the chaos.

Residents Divided Over Knight Consortium Amid Fallout from Crypto Scandal

San Pedro is wrestling the fallout from this scandal, and residents are still to decide on the legitimacy of the Knight Consortium Foundation. While some have been victims of the crypto pyramid scheme, others support the organization’s mission to promote cryptocurrency investment.

Additionally, Canadian crypto trading platform ezBtc recently disclosed that it misappropriated over $9.5 million in user funds, mainly in Bitcoin and Ether. The British Columbia Securities Commission (BCSC) stated that ezBtc’s founder, David Smillie, diverted these assets for personal use, including expenditures on online gaming sites and personal accounts, from 2016 to 2019.

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Elderly US Resident Recovers $275K Stolen by Coinbase Posers

Gairika Mitra — Tue, 08 Oct 2024 13:42:22 +0000

An elderly resident of the United States has successfully recovered the $275,000 in crypto stolen by Indian fraudsters posing as Coinbase support.

Law enforcement and blockchain investigator ZachXBT, who posted the news on Monday, helped with the retrieval.

The elderly victim became a target in April 2024 after receiving a series of emails from “Coinbase Support,” claiming that their account had been compromised by malware. The scammers employed an array of psychological manipulation tactics to gain the victim’s trust and extract sensitive financial information.

The fraudsters gained access to the victim’s digital wallet, allowing them to execute unauthorized transactions and drain a large amount from the account. After which, they laundered the funds by converting Ethereum and Bitcoin into Tron via centralized exchanges and transferred stablecoins to over-the-counter (OTC) platforms.

Courtesy: ZachXBT

Fortunately, ZachXBT’s blockchain research and cooperation with authorities enabled the recovery of the stolen cryptocurrency. Using the transaction hash 30125031d32a3a2ec9a6963d218bf2494d4392d9444586061a97d84511479346, investigators traced the stolen assets and located the seized funds.

ZachXBT Exposes Scam Tactics

Earlier, ZachXBT revealed details about an audacious and intricate scam. An X user with the handle @ape_31 reportedly defrauded more than 250 users, stealing over $650,000 in the past year.

The scammer’s strategy included sharing fake profit and loss (PNL) screenshots from a Bybit demo account, along with using a new account to entice victims into purchasing paid services. The victims were subsequently blocked.

The investigator also mentioned another attack that resulted in the theft of roughly $3.89 million in Truflation’s native token (TRUF), $1.07 million in Ether, and $236,000 in DAI stablecoin from the project’s treasury multi-signature and personal wallets on Ethereum. Additionally, seven other blockchains lost a a cumulative $100,000.

The post Elderly US Resident Recovers $275K Stolen by Coinbase Posers first appeared on The Shib Daily.

ICHCoin Scam: FBI Urges More Victims to Speak Out

Gairika Mitra — Mon, 07 Oct 2024 13:53:10 +0000

The FBI is urging more victims of the fraudulent cryptocurrency platform, ICHCoin, to come forward. This is after the scam platform reportedly siphoned millions of dollars from unsuspecting individuals across the United States.

Assistant Special Agent in Charge Amanda Culver labeled ICHCoin as both a “scheme” and a “scam.” The scheme typically begins with fake social media profiles reaching out to potential victims on platforms like Instagram and Facebook. These accounts lure users with promises of lucrative investment opportunities in cryptocurrency. Once the initial contact is made, victims are redirected to WhatsApp, where they communicate with individuals posing as experts eager to teach them about cryptocurrency investments.

ICHCoin Victims Lose Millions in Fraudulent Crypto Scheme

Culver revealed that victims are often pressured to deceive their banks regarding large wire transfers to ICHCoin, which are marketed as investment opportunities. “The average person could certainly be fooled by this scam,” she warned.

Victims are then led to believe they can track their supposed returns through an ICHCoin app, but in reality, no returns exist. When individuals attempt to withdraw their money, they are ghosted by the platform, leaving them with no recourse to recover their funds. The FBI has already uncovered heartbreaking stories of individuals who have lost their entire life savings to it.

Since December 2023, the FBI estimates that approximately $30 million has been lost to ICHCoin in the U.S. alone. “It’s extremely easy to use these platforms to bamboozle people,” Culver stated. “People recognize that there can be a return on investment, but the concern is that proper research needs to be done.”

Courtesy: Internet Crime Complaint Center

In a similar case, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Cambodian businessman and ruling party senator Ly Yong Phat, along with his conglomerate, L.Y.P. Group Co., Ltd., and several associated businesses, including O-Smach Resort. These measures were taken due to their involvement in human rights abuses and financial misconduct related to online scam operations.

The post ICHCoin Scam: FBI Urges More Victims to Speak Out first appeared on The Shib Daily.

Teen Sued for $24M Theft in SIM Swap Scam

Gairika Mitra — Fri, 04 Oct 2024 12:43:30 +0000

Cryptocurrency investor Michael Terpin sued a recent high school graduate for allegedly stealing $24 million worth of his digital assets in a sophisticated SIM swap scam.

Terpin claimed that the thief exploited a vulnerability in the two-factor authentication (2FA) system protecting his cryptocurrency wallet. The lawsuit also sees Terpin seeking an additional $45 million in damages from telecommunications giant AT&T, accusing the company of negligence in failing to prevent the attack.

Terpin, a prominent figure in the cryptocurrency world, alleged that the teenager successfully bypassed his 2FA protections by taking control of his SIM card.

Blockchain investigator ZachXBT expressed his views about the Terpin incident as well.

What is a SIM Swap?

A SIM swap is a type of identity theft where an attacker gains control of a person’s mobile phone number by transferring it to a SIM card they control. This allows them to intercept calls and messages intended for them, often bypassing security measures like two-factor authentication (2FA) and two-step verification, especially those relying on SMS or phone calls for verification.

SIM swaps are typically carried out remotely. Attackers contact the mobile service provider, either by phone or in person, and impersonate a person to convince the provider to switch their number to their SIM card. They may have gathered personal information through previous hacks or, in some cases, may have inside help from an employee within the company.

Once they have control of the number, attackers can access sensitive information, including passwords, bank accounts, and cryptocurrency wallets. They can also hijack apps on phone, such as social media and financial apps. If you have a popular social media account, the attacker might use it to post malicious links, such as fake cryptocurrency or NFT airdrop scams, targeting unsuspecting followers.

SIM swap attacks often exploit publicly available information or social engineering tactics, as seen in high-profile cases like that of Ethereum co-founder Vitalik Buterin.

Apart from this, prominent crypto enthusiast and NFT creator Cole (@ColeTherium) fell victim to a SIM swap attack last year, resulting in the loss of his X account.

After the breach, his X account was hacked, prompting a warning from users: “Be careful not to click on any links; there is NO $IGLOO! #scam.”

The post Teen Sued for $24M Theft in SIM Swap Scam first appeared on The Shib Daily.

India Battling Cyber Slavery and Human Trafficking in Southeast Asia

Gairika Mitra — Thu, 03 Oct 2024 12:56:27 +0000

Cyber slavery has reportedly entrapped tens of thousands of Indians across several countries in Southeast Asia. They are forced to work for online scammers targeting Indians at home and defrauding millions of dollars from them. Now the Indian government is cracking down on this crime.

According to a report from WION, India’s telecom ministry disconnected 21.7 million mobile phone connections and blocked some 226,000 handsets in a bid to handle the issue. It also set up an inter-ministerial panel which includes the Home Ministry, Immigration Bureau, Financial Intelligence Unit, Reserve Bank of India, Information Technology Ministry, and National Investigation Agency (NIA).

Government data shows that 29,466 of the 73,138 Indians who travelled to Cambodia, Thailand, Myanmar, and Vietnam on visitor visas from January 2022 to May 2024 are yet to return. Nearly 70% of those who “disappeared” were said to have gone to Thailand.

According to earlier local media reports, the said nations trapped at least 5,000 Indians, with Cambodia as purportedly the main center of cyber slavery in the region. Many had gone to the country thinking they were joining legitimate firms. However, these jobs allegedly forced people to engage in various cyber crimes.

Indian Cyber Crime Coordination Centre data shows that 45% of crimes targeting Indians originate from Southeast Asia, and around 100,000 complaints have been registered with the National Cyber Crime Reporting Portal since January 2023.

In 2024, multiple reports surfaced about Indians still being trapped in the said countries. Many reportedly faced unlawful detention, while government agencies and NGOs intervened to rescue them. In May, the Indian government confirmed the repatriation of 360 individuals who had worked as cyber slaves in Cambodia over the last five months.

Courtesy: U.N. Office of the High Commissioner for Human Rights

Global Crackdown on Financial Crimes Intensifies

The Shib Daily earlier reported that The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Cambodian businessman and ruling party senator Ly Yong Phat, along with his conglomerate L.Y.P. Group Co., Ltd., and several affiliated businesses, including O-Smach Resort. These sanctions stem from their involvement in human rights abuses and financial misconduct linked to online scam operations.

The FBI’s Internet Crime Complaint Center also (IC3) recently reported a sharp rise in cryptocurrency investment fraud. Losses from investment fraud increased from $3.31 billion in 2022 to $4.57 billion in 2023. Of these, cryptocurrency-related fraud saw a significant surge, with losses climbing from $2.57 billion in 2022 to $3.96 billion in 2023, reflecting a 53% increase.

ShibaCon, a vision of Shiba Inu creator Ryoshi, is set to make history in Thailand. Join the movement and be part of this landmark event in November! Tickets are available now at shibacon.shib.io.

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The Shib Crypto Recap: Wednesday

Malaya Ruiz — Wed, 02 Oct 2024 20:07:26 +0000

In today’s cryptocurrency news, the focus predominantly lies on regulatory measures affecting the crypto market and high-profile crypto theft cases. These highlight the growing concerns and complexities that plague this industry.

Meanwhile, optimistic signals are gaining traction in the Shiba Inu universe as of late. September saw promising gains for the dog-themed altcoin.

Uruguay Joins LATAM Crypto Movement: New Law Empowers Central Bank to Oversee Digital Assets

Uruguay has introduced a law to regulate cryptocurrency. It is now among the few nations within Latin America with a legal framework for crypto trading. The law empowers the Central Bank of Uruguay to oversee local crypto exchanges and operators. It also gives the Central Bank authority to oversee crypto activities, including the registration of exchanges, fund managers, and wallet providers. Companies must comply with anti-money laundering and counter-financing of terrorism regulations and meet certain criteria to obtain permits.

Industry leaders see this as a significant advancement, and it marks the first formal recognition of crypto assets in the country. Before this move, other LATAM nations like Brazil, Venezuela, and Argentina have also implemented crypto regulations.

Cyber Intrusions and Crypto Scams: How One Young Hacker and a South Korean Fraud Ring Racked Up Millions

A 21-year-old from Lebanon, Indiana, named Evan Frederick Light has pleaded guilty to cyber intrusion and theft of over $37 million in cryptocurrency from nearly 600 people. He admitted to conspiracy charges related to wire fraud and money laundering, according to the U.S. Attorney’s Office for the District of South Dakota. In February 2022, Light reportedly targeted an investment company in Sioux Falls, South Dakota. He accessed personal identifiable information (PII) of hundreds of clients, which he used to steal cryptocurrency. Light, along with unidentified accomplices, hacked into the company’s computer servers and extracted data. The stolen cryptocurrency was then moved to various locations.

Meanwhile, prosecutors in South Korea have charged a group of suspected fraudsters for scamming victims out of $22.7 million. The group, led by four men in their 40s, allegedly convinced users to pay $5,000 in Tether (USDT). They created fake trading platforms, such as BISSNEX and BDCDP, to pose as legitimate crypto exchanges. They used YouTube and the Naver Band app to lure in investors. Once victims engaged with these platforms, they received counterfeit letters from the Financial Supervisory Service and the Korean National Police Agency. The group also pretended to represent well-known firms like Shinyoung Securities, using forged documents to deceive more investors. Many victims faced heavy losses, with one reporting a loss of over $1.5 million.

Criminal Intent Unmasked: Australian Federal Police Seize $6.4 Million from Ghost App Mastermind

The Australian Federal Police (AFP) confiscated $6.4 million in cryptocurrency from Jay Je Yoon Jung, who created the encrypted Ghost network. Officials said the app was used by organized crime groups for illegal activities, including drug trafficking and money laundering. The AFP accessed the cryptocurrency through the account’s seed phrase, which they found during a raid at Jung’s residence.

Jung was arrested on September 17 and faces five charges, including supporting a criminal organization. He could receive a sentence of up to 26 years. The AFP claims Jung intended Ghost for criminal activities, with users engaging in money laundering and even contract killings.

As SHIB Burns Billions, Green Vertical Candles Signal a Bullish Shift Ahead

Shiba Inu is ramping up its token-burning efforts to drive up its price, having burned nearly 2.4 billion SHIB tokens in September alone. This significant increase involved 2,378,422,108 SHIB being incinerated across 131 transactions, marking a 7650.63% rise in the burn rate over the past week, with more than 2 billion tokens removed from circulation. Additionally, the launch of ShibTorch, a community-focused burn portal within the Shibarium Layer-2 network, encourages active participation from the Shiba Inu community in the token-burning process.

In a series of “Uptober” gains for SHIB, crypto analyst Crypto Sheriff shared on social media platform X that the SHIB chart hit a pre-identified support zone, suggesting that the correction phase is over. This announcement brought hope to the Shiba Inu community, yearning for the kind of upward movement seen throughout September. Just a day before, Crypto Sheriff had mentioned that the price correction was underway, promising more pronounced upward movement, or “harder green candles,” in October.

The term “green vertical candles” represents rapid buying pressure that could overwhelm sellers and indicate a positive shift in market sentiment.

The post The Shib Crypto Recap: Wednesday first appeared on The Shib Daily.

Prosecutors Charge South Korean Group in $22.7M Crypto Fraud

Lawrence Damilola — Wed, 02 Oct 2024 16:12:01 +0000

Prosecutors in South Korea have charged a group of suspected fraudsters accused of impersonating regulators to scam victims out of $22.7 million.

According to local media reports, the group was led by four men in their 40s who allegedly tricked users into paying $5,000 in Tether (USDT).

Fake Exchanges and Crypto Fraud in South Korea

Authorities allege that the group created fraudulent trading platforms, including BISSNEX and BDCDP, which pretended to be legitimate crypto exchanges. They reportedly used YouTube channels and the Naver Band chat app to attract investors. Prosecutors say that once victims were on these platforms, the group sent out letters that appeared to be from the Financial Supervisory Service (FSS) and the Korean National Police Agency.

One such letter, dated April 16, 2024, was published by local media and bore the official-looking seals of both the FSS and the police. The letter claimed to address users of BISSNEX and stated that the FSS and police were investigating a 41-year-old man accused of defrauding the platform’s customers. It read, “Since November last year, [the man] has been inviting thousands of BISSNEX investors to create cryptoasset trading accounts.”

BISSNEX allegedly informed its users that the man had illegally conducted financial transactions on the platform and warned that the police and FSS were investigating. It asked clients to pay a refundable $5,000 USDT deposit to assist with the probe, promising to refund the money once the investigation was complete.

South Korean police noted that these tactics resemble those used in other crypto-related fraud cases. Prosecutors said the indicted group also impersonated major firms like Shinyoung Securities and DB Financial Investment, using fake bankbooks and photos of cash in their chat groups to mislead more investors. Authorities added that the group had “distributed more fake official documents impersonating the police and the Financial Supervisory Service.”

Victims of this scheme suffered significant financial losses, with one unnamed victim telling local media, “Some victims lost 2 billion won [over $1.5 million] in investments.” Prosecutors have indicated that the investigation is ongoing.

The post Prosecutors Charge South Korean Group in $22.7M Crypto Fraud first appeared on The Shib Daily.

Trading Scam Wipes Out Over $650K from X Users

Gairika Mitra — Tue, 01 Oct 2024 09:49:44 +0000

An individual known as @ape_31 on the social media platform X has allegedly swindled more than $650,000 from over 250 users within the past year.

Blockchain investigator ZachXBT posted about this brazen and sophisticated operation on X Monday.

The scammer’s modus operandi involved posting fake profit and loss (PNL) screenshots from a Bybit demo account and leveraging a news account to lure victims into paid services before blocking them once payment was received.

1/ The UK scammer @ape_31 @60711 has stolen more than $650K from 250+ X users in the past year by posting fake PNL screenshots from a Bybit demo account and running a news account to funnel unsuspecting victims into paid services before blocking them upon receiving payment. pic.twitter.com/rWTRPbTiym
— ZachXBT (@zachxbt) September 30, 2024

The scammer, who operated under the handle @ape_31, had been meticulously baiting potential victims with carefully crafted posts featuring demo account screenshots and replies to large accounts to boost engagement. Once hooked, victims were lured into paying between $250 and $500 for copy trading services. The scammer then employed social engineering tactics to persuade individuals to send more funds under the guise of managing their investments.

One victim reported sending $500 to @ape31 for copy trading. The scammer further asked for $20,000 with claims of having “zero liquidation price.” Another individual shared a similar experience where they were promised risk-free gains and the potential to grow their balance from $10,000 to $100,000 in just a few days. However, after sending funds, the scammer ignored the victim.

Sophisticated Trading Scam Exploits API Keys and Fake Profits

The elaborate scheme also involved providing victims with API keys to supposedly watch trades and showing them fake PNL screenshots to create the illusion of significant profits. The scammer then blackmailed victims into sending more money by asserting that additional funds were needed to claim the alleged profits, ultimately blocking them after payments.

Investigations have uncovered 16 exchange deposit addresses linked to wallets shared by victims, which collectively received $650,000 over the past year from more than 250 individuals. The scammer reportedly frequently changed deposit addresses to evade detection, suggesting that even more funds may have been stolen.

A key piece of evidence included a recorded video call where @ape_31 attempted to defraud another victim using similar tactics.

“It is sad to watch this scammer take advantage of so many desperate people and newbies looking for a win. Hopefully, this info will assist law enforcement in further identifying the scammer,” said the analyst.

Authorities are urged to investigate these allegations thoroughly to bring the perpetrator to justice and safeguard potential future victims from falling prey to such deceptive practices.

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CFTC Orders William Koo Ichioka to Pay $31M to Fraud Victims, $5M Fine

Gairika Mitra — Tue, 24 Sep 2024 14:01:02 +0000

The Commodity Futures Trading Commission (CFTC) last week announced significant monetary relief against William Koo Ichioka for acts of fraud.

Judge Vince Chhabria of the U.S. District Court for the Northern District of California issued the order mandating Ichioka to pay $31 million in restitution to victims of fraud. Along with this, he faces an additional $5 million civil monetary penalty.

The decision follows an initial consent order entered by the court on Aug. 14, 2023. That order prohibited Ichioka from committing future violations of the Commodity Exchange Act (CEA) and CFTC regulations. It also banned him from trading in any CFTC-regulated markets and from registering with the CFTC.

Ichioka’s fraudulent scheme began in 2018 when he accepted investment funds by falsely promising participants a 10% return every 30 business days. “Although Ichioka invested some funds in forex and digital asset commodities, he commingled participant money with his own funds and used participant funds for his own personal expenses, including, among other things, rent for his personal residence, jewelry, including watches, and luxury vehicles,” the CFTC said.

To further deceive his investors, Ichioka generated false financial documents and provided them with misleading account statements, which overstated the value of the assets he managed.

Legal Consequences Mount Amid Broader Crackdown on Crypto Fraud

William Koo Ichioka’s legal troubles extend beyond the CFTC’s actions. On June 22, 2023, the Department of Justice charged him with multiple counts, including wire fraud and securities fraud, all stemming from the same fraudulent activity outlined in the CFTC complaint.

He pled guilty to these charges on the same day and was sentenced to 48 months in prison. He was also given an additional five years of supervised release. The court ordered him to pay $5 million in fines and $31,330,715.86 in restitution to his victims.

This isn’t the first time an incident of this sort happened in the crypto world. The Shib Daily reported previously that Federal prosecutors officially charged two individuals in connection with a cryptocurrency theft exceeding $230 million. A related coverage showed the OFAC imposing sanctions on Ly Yong Phat, a Cambodian businessman and ruling party senator.

In order to help safeguard investors from similar schemes, the CFTC released several Fraud Advisories, including specific advisories on Commodity Pool Fraud and Forex Fraud. The agency strongly advises individuals to verify the registration of any individual or company with is listings before investing funds.

The post CFTC Orders William Koo Ichioka to Pay $31M to Fraud Victims, $5M Fine first appeared on The Shib Daily.

3 Most Common Crypto Scams in 2024 and How to Spot Them

Malaya Ruiz — Thu, 19 Sep 2024 20:23:56 +0000

As the number of individuals adopting cryptocurrency grows, so does the number of malicious actors with ulterior motives. The Crypto Scam Tracker of the Department of Financial Protection & Information (DFPI) in California shares current information on scams as they emerge, including detailed descriptions and the names of the fraudulent websites involved.

The tracker contains information on scams derived from consumer complaints. It reflects accounts of financial losses that complainants have attributed to fraudulent or misleading activities. The DFPI, however, clarifies that it has not confirmed the loss claims made by these individuals.

Here are three of the most common crypto scams in 2024, in no particular order, according to data from the DFPI.

Fraudulent Trading Platform

This is when a scammer creates a fake website or app, luring victims into depositing money by falsely presenting it as a chance to invest in a convincing revenue-generating opportunity. Such sham platforms look legitimate, even mimicking price action and generating fake profits. The FBI‘s Internet Crime Complaint Center’s (IC3) “Cryptocurrency Fraud Report 2023” lists this as the most prominent confidence-enabled type of crypto investment scheme last year. Similarly, the DFPI tracker shows that the use of fraudulent websites is still at large this year and continues to target potential investors.

As reported by the DFPI, one such scam targeted a victim who met a stranger online through the platform sparkrlv.com. This individual guided them on how to send cryptocurrency to the site for trading. The victim transferred $110, expecting to earn back $117, but has not been able to get their money back, and the website has ceased operations.

How to spot this type of scam: These fake platforms likely will not have adequate documentation, such as white papers and comprehensive roadmaps. If they do, they are typically of subpar quality. They frequently employ aggressive marketing tactics and promises of quick wealth.

Pig Butchering Scams

This type of scam primarily involves various tactics to build relationships with victims, whether for social, romantic, or business purposes, eventually leading them to a phony investment scheme. Typically, the scammer connects via social media or dating apps, directing the victim to move conversations to private channels like WhatsApp to build trust. When they feel confident in their connection with the victim, they introduce purportedly lucrative crypto investments and urge the victim to create an account on a fake exchange. The scammer creates a facade of realistic gains to continue engaging the victim. However, after depositing funds, the victim usually finds they can’t withdraw their money. The scammer then pressures them to invest even more under various pretexts.

For example, the DFPI has documented a pig butchering scam where a victim was approached by an “analyst” on WhatsApp and was lured into a group chat that offered stock and crypto trading advice. The self-proclaimed analyst guided the victim to crypto contract trading on the Volcanic Exchange app, leading them to invest $500. Believing their account had reached $30,477, the victim was unable to withdraw their funds due to fictitious initial public offering (IPO) delays. In total, they transferred $43,000, but the website has since shut down, leaving them without any recovery of their investment.

How to spot this type of scam: These scammers often use WhatsApp and texting, sometimes pretending to be someone you know. Things to look out for are unknown contacts and unverifiable identities. If someone avoids meeting or talking on the phone, it’s a strong sign they may not be who they claim to be.

Imposter Scams

In this type of fraudulent activity, a scammer masquerades as a credible business, a government official, or a celebrity to gain illicit access to a person’s systems and private data. Their intent is typically to profit financially by stealing the victim’s personal belongings or assets.

An incident reported to the DFPI detailed the account of two victims who were deceived by a YouTube video promoting an XRP “airdrop,” allegedly featuring Ripple CEO Brad Garlinghouse. The video encouraged viewers to send between 1,000 and 500,000 XRP to a displayed QR code, promising to return double the amount. The XRP wallet they were asked to send funds to turned out to be a counterfeit.

How to spot this type of scam: The names of the companies or websites that scammers use can often mimic those of legitimate entities in the market, which creates a risk of confusion for consumers. To avoid becoming a victim of fake companies or websites, especially those that are seemingly being endorsed by well-known figures, conduct thorough research before making any investments.

(Source: @jayjit.biswas, Medium)

Other common crypto scams include asset recovery, advance payment, hacking, blackmail, and romance scams. The DFPI constantly warns against uninformed investment decisions and communicating with strangers online. The department operates a crypto unit, led by its commissioner, which specializes in monitoring, examining, and enforcing laws concerning crypto assets and institutional investments.

The post 3 Most Common Crypto Scams in 2024 and How to Spot Them first appeared on The Shib Daily.

FCA Charges London Man for Running Illegal Crypto ATMs

Gairika Mitra — Wed, 11 Sep 2024 13:37:37 +0000

The Financial Conduct Authority (FCA) in the United Kingdom on Tuesday charged 45-year-old Olumide Osunkoya for running multiple crypto ATMs without a proper FCA registration.

“Mr Osunkoya is accused of running crypto ATMs, which processed £2.6m (approx. $3.4 million) in crypto transactions across multiple locations between 29 December 2021 and 8 September 2023 without the required registration,” the agency said in a press release.

This is reportedly the first time an individual is being charged in relation to illegal crypto ATMs. Osunkoya is scheduled to appear at Westminster magistrates court at the end of this month.

Crypto ATMs operate by allowing people to buy or convert traditional currency into crypto assets like Bitcoin or Ethereum. Unregulated, illegal crypto ATMs can become vehicles for money laundering and other illicit activities.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, highlighted the risk associated with crypto ATMs. “If you’re illegally operating a crypto ATM, we will stop you. If you’re using a crypto ATM, you are handing your money directly to criminals. Criminals can exploit crypto ATMs to launder money globally. There are no legal crypto ATM operators in the UK,” she said.

The FCA is responsible for overseeing anti-money laundering (AML) activities. The agency has also been tracking counter-terrorist financing (CTF) measures for UK crypto asset businesses since 2020. With that being said, any firm offering cryptocurrency services must be registered with the FCA.

Crypto ATMs Present in Other Parts of the Globe

Other countries have also seen a rise legal and illegal crypto ATMs.

The Australian Federal Police (AFP) even issued an alert noting that Australians have lost a minimum of $180 million to cryptocurrency investment scams over the past year. The AFP said that the most common investment frauds are the pig butchering scams and deep fakes. In August, The Shib Daily reported on the increased presence of crypto ATMs in Australia, rising to 17% in the past two years, making the country the third-largest market for such machines. The Australian authorities called it a “money laundering vulnerability.”

To date, Australia has around 1,162 machines, from just 67 the year before. Australia reportedly added around 1,000 ATMs in the months of April to May 2024. Crypto ATMs have also become a common spectacle in New Zealand, which saw machine numbers soar from zero to 157 kiosks over the past year.

Source: Coin ATM Radar

The post FCA Charges London Man for Running Illegal Crypto ATMs first appeared on The Shib Daily.

Bitcoin ATMs Emerge as Key Tools for Scammers in Growing Fraud Cases

Lawrence Damilola — Tue, 27 Aug 2024 17:53:29 +0000

Scammers are increasingly exploiting cryptocurrency ATMs and kiosks to swindle unsuspecting victims. In a recent case in Troy, Michigan, a woman who fell victim to a scam was directed to a Bitcoin kiosk at a local gas station.

The fraudulent scheme began with an email requesting a refund for an alleged accidental overpayment of $3,966. Believing she owed the amount, the woman followed instructions to withdraw cash and deposit it into a Bitcoin ATM. After complying, the scammer claimed that not all the funds were received and demanded an additional $1,000. To resolve this, the woman was instructed to purchase two $500 gift cards and provide the serial numbers to the scammers. The total loss amounted to $4,966.

Once cash is deposited into a cryptocurrency ATM, it is immediately converted into digital currency, making it difficult to trace as scammers transfer the funds to accounts, often overseas. In 2023, the FBI’s Internet Crime Complaint Center received over 2,000 complaints involving cryptocurrency ATMs from victims aged 60 and above.

https://twitter.com/brian_laverdure/status/1818290492255158334?s=61&t=DIQZUGxUT58xpyvrDKxwZQ

In addition to cryptocurrency schemes, the FBI has noted a surge in “phantom hacker” scams that emerged in 2023. In these cases, scammers send couriers to collect cash or precious metals from victims as part of call center schemes, often involving impersonation of tech support or government officials. Federal agencies, including the FBI and the Department of Justice, targeted nearly 3,000 “money mules” earlier this year. These individuals collect and transfer money for international fraud rings, with some even recruiting college students to open fraudulent accounts to funnel illicit proceeds.

Crypto romance scams have also become prevalent, resulting in significant financial losses. Recently, a Philadelphia tech professional lost $450,000 in a cryptocurrency romance scam. Erin West, a Deputy District Attorney in Santa Clara, California, reports receiving five to six emails daily from individuals affected by “pig butchering” scams. “We are receiving 5-6 emails a day from people who are victims of pig butchering. The most recent victim lost $5 million dollars and that’s not even the biggest amount one victim has lost to this scam,” West stated.

Stolen funds are often funneled overseas to transnational criminal organizations in countries like Myanmar and Cambodia. These organizations utilize trafficked individuals as virtual slaves to execute the pig butchering scams, exacerbating the global impact of these fraudulent operations.

The post Bitcoin ATMs Emerge as Key Tools for Scammers in Growing Fraud Cases first appeared on The Shib Daily.

Chinese Authorities Crack Down on $300 Million Crypto Fraud Ring

Saha Swatilakha — Mon, 13 May 2024 16:13:17 +0000

Chinese authorities have apprehended six suspects involved in a sophisticated cryptocurrency fraud operation amounting to 2.94 billion yuan, equivalent to approximately $300 million. The suspects were arrested by The Public Security Bureau of Panshi in Jilin province, Northeast China, following an intensive investigation into their illicit activities.

The suspects allegedly operated an underground bank that exploited the anonymity and decentralized nature of cryptocurrencies to conduct illegal foreign exchange operations between the Chinese yuan and the South Korean won. This illicit scheme targeted unsuspecting investors, deceiving them during the exchange process and subsequently absconding with their funds.

Law enforcement became aware of the suspicious transaction patterns linked to the suspects’ accounts, triggering a thorough investigation that led to the apprehension of the individuals. During the operation, authorities seized a significant amount of bank cards and related equipment crucial to the fraudulent activities.

The use of cryptocurrencies in illegal financial activities has been a growing concern globally, with similar cases reported in South Korea and other countries. In March, fraudsters in South Korea swindled $4.1 million from a citizen through a crypto investment scheme, highlighting the urgent need for increased vigilance and regulation within the digital asset industry.

The suspects leveraged domestic accounts to receive and transfer funds, exploiting the features of cryptocurrencies to conduct over-the-counter transactions for currency exchange purposes. Their clientele reportedly included South Korean purchasing agents, cross-border e-commerce platforms, and import-export trade firms seeking to circumvent capital controls.

China’s robust efforts to crack down on illegal cryptocurrency activities underscore the government’s commitment to maintaining financial stability and regulatory integrity. Despite the decentralized nature of cryptocurrencies, authorities are employing innovative strategies to identify and dismantle illicit operations that undermine investor confidence and pose systemic risks.

The post Chinese Authorities Crack Down on $300 Million Crypto Fraud Ring first appeared on The Shib Daily.

SBF’s Extensive Requests: Appeals Sentence, Demands California Jail Near Family

Gushiken Yona — Fri, 12 Apr 2024 14:06:32 +0000

In a legal saga that continues to stun the cryptocurrency industry, the financial realm, and even the world, Sam Bankman-Fried, the founder and former CEO of the then-crypto behemoth FTX, once again filed an appeal for the court’s earlier sentence. Amid the appeal of a stringent 25-year sentence, the demands of the once dubbed “golden boy of crypto” extend beyond the courtroom, advocating for a specific placement in a California jail, strategically chosen to maintain proximity to cherished family ties.

During Bankman-Fried’s sentencing hearing on March 28, defense lawyer Marc Mukasey revealed plans for an appeal to the US Court of Appeals for the Second Circuit. Facing the potential of a lengthy prison term and spending it with other convicted individuals, the 32-year-old former billionaire lodged appeals against both his conviction and the 25-year sentence.

Aside from that, his lawyers also highlighted on the appeal that Bankman-Fried should serve his sentence near his family’s home in California. SBF, as he is more popularly known in the crypto space, is the firstborn son of renowned Stanford scholars Barbara Fried and Joseph Bankman. His parents pledged their California home as security for their son’s release in December after a New York judge decided to set his bail at a staggering quarter billion dollars.

“Defendant Sam Bankman-Fried was sentenced on March 28, 2024, primarily to 25 years imprisonment, to be served, if possible, near his family’s home in California. (ECF 424),” the appeal read.

In addition to these requests, Bankman-Fried’s defense team also petitioned the court to permit him to stay at his current detention facility, the Metropolitan Detention Center in Brooklyn, to facilitate his access to his legal representatives while waiting to submit their legal arguments and pending the court of appeal’s decision.

“Мг. Bankman-Fried respectfully requests, pursuant to Rule 38(b)(2) of the Federal Rules of Criminal Procedure, that the Court supplement its recommendation to the Bureau of Prisons (‘BOP’) by issuing the attached proposed order recommending that the BOP allow him to remain at the Metropolitan Detention Center in Brooklyn to facilitate access to his appellate counsel pending the filing of the briefs in his anticipated appeal,” Bankman-Fried’s lawyers said in the appeal.

Furthermore, Bankman-Fried’s appeal disclosed that the government has chosen to maintain a neutral position regarding SBF’s request. SBF’s lawyers shared that the government has informed them that they take no position on the request, refraining from expressing either support or opposition.

Adrian Mendoza, Managing Partner at Lillig & Thorsness, Ltd. expressed his opinion on Bankman-Fried’s 25-year prison sentence. “Twenty-five years is a long time as SBF is going to learn. He is about to lose the prime years of his life. I followed the trial closely, and when I hear people say that he made mistakes in his altruistic investing strategies I disagree. This was outright fraud; deliberate and intentional.”

The lawyer who specializes in the areas of complex civil and commercial litigation added, “For such an intelligent and well-educated young man he seemingly lacked a vital characteristic – integrity. For him, the end justified the means.” He further noted, “Young entrepreneurs and professionals need to understand that a career is a marathon, not a sprint. Don’t cut corners and jeopardize your livelihood and potentially your freedom.”

The post SBF’s Extensive Requests: Appeals Sentence, Demands California Jail Near Family first appeared on The Shib Daily.

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