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Crypto mixer founder argues 30-year prison sentence is ‘unwarranted’

In March, a jury convicted Bitcoin Fog founder Roman Sterlingov of four counts related to money laundering through the operations of the crypto mixing service.

Lawyers representing Roman Sterlingov, the founder of cryptocurrency mixer Bitcoin Fog, have argued against a “lengthy” sentence following his conviction on money laundering charges.

In an Aug. 15 filing in the United States District Court for the District of Columbia, Sterlingov’s legal team did not seem to make a specific sentencing recommendation in response to prosecutors’ petition he should serve between 20 and 30 years in prison. Lawyers for the Bitcoin Fog founder claimed that the government’s recommendations were “unwarranted” based on sentencing in comparable cases.

In March, a jury convicted Sterlingov of money laundering, conspiracy to money launder, operating an unlicensed money transmitting business, and money transmission without a license in DC. Prosecutors alleged he operated the crypto mixer from 2011 to 2021, acting as a money laundering service for “criminals seeking to hide their illicit proceeds from law enforcement.”

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Chainalysis alerts rise in crypto hacks and ransom in 2024

Cryptocurrency hackers have been returning to their roots to targeting centralized exchanges amid a spike in the Bitcoin price in 2024.

A new report indicates that while overall illicit transactions in cryptocurrency markets declined in 2024, certain types of crypto-related criminal activity rose.

Aggregate illicit activity in crypto has dropped 19.6% year-to-date (YTD), falling from $20.9 billion to $16.7 billion by July 2024, according to the first part of the mid-year crypto crime update by Chainalysis released on Aug. 15.

Chainalysis found that legitimate crypto activity has been growing faster than illicit activity onchain in 2024, particularly due to positive industry events like the adoption of spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) in the US.

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China Unearths Massive Gold Veins That Could Reshape Global Markets

Missing ‘Cryptoqueen’ Ruja Ignatova has assets frozen by UK court

The “Cryptoqueen” has not been seen since 2017, as investigative authorities worldwide continue to seek information on her whereabouts.

In an Aug. 7 ruling, the United Kingdom’s High Court of Justice issued a Worldwide Freezing Order against Ruja Ignatova, popularly known as the “Cryptoqueen,” and several of her alleged accomplices in the OneCoin scheme.

More than 400 victims of the OneCoin collapse came together to petition the court to freeze the assets of Ignatova, OneCoin co-founder Sebastian Greenwood, Christopher Hamilton, and Robert MacDonald, who are alleged to have helped launder funds on behalf of OneCoin, and four influencers who advertised OneCoin to the public.

Additionally, business entities Ignatova allegedly used to launder funds from OneCoin and purchase assets have also been subjected to the worldwide asset freeze.

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China Unearths Massive Gold Veins That Could Reshape Global Markets

Judge grants ex-FTX exec’s request to postpone reporting to prison

Ryan Salame will have an additional 45 days of freedom after his lawyers said there were medical complications due to a dog bite.

A federal judge has granted a motion filed by lawyers representing former FTX Digital Markets co-CEO Ryan Salame to delay reporting to prison until Oct. 13.

In a July 30 filing by the United States District Court for the Southern District of New York, Judge Lewis Kaplan approved a motion allowing Salame to push his self-surrender date by 45 days as part of his sentence to 7.5 years in prison. Salame’s legal team requested the delay due to medical complications from a dog biting the former FTX executive’s face on June 29 while he was visiting a friend’s home.

The July 26 motion by Salame’s legal team redacted medical information related to his injuries but claimed that a German Shepherd “mauled” him, and he would require treatment and surgery before reporting to prison. He was initially going to report to prison on Aug. 29, roughly three months after being sentenced.

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China Unearths Massive Gold Veins That Could Reshape Global Markets

Bitfinex hacker Heather Morgan spotted at Bitcoin Conference 2024

Heather Morgan, aka Razzlekhan, has been spotted in several Bitcoin events, the latest being the Bitcoin Conference 2024.

Heather Morgan, sometimes known by her alter ego “Razzlekhan” — a self-styled social engineer and flamboyant rapper — made headlines after being arrested for and subsequently pleading guilty to one of the most audacious cyber heists in history, the 2016 Bitfinex hack of 120,000 Bitcoin, worth $4.5 billion at the time of her arrest.

Contrary to popular belief that she was behind bars, Morgan reportedly appeared at the Bitcoin Conference 2024 in Nashville, sparking curiosity and controversy among attendees. Her presence at several crypto conferences has left the crypto community buzzing with speculation.

When Morgan pleaded guilty on Aug. 3, 2023, she knew she could face up to five years in prison and receive a fine of $250.000. Since then, she’s been awaiting sentencing, scheduled for Nov. 8, 2024.

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China Unearths Massive Gold Veins That Could Reshape Global Markets

Ex-FTX exec asks for delay reporting to prison after dog attack

Ryan Salame was scheduled to report to prison on Aug. 29 after being sentenced to 90 months for charges related to the misuse of FTX user funds.

Lawyers representing former FTX Digital Markets co-CEO Ryan Salame have requested a 45-day delay before his prison reporting date due to medical complications from a dog biting his face. 

In a July 26 filing in the United States District Court for the Southern District of New York, Salame’s legal team requested his self-surrender date to serve a 7.5-year sentence be moved from Aug. 29 to Oct. 13 “so that he may undergo urgent and necessary medical treatment and surgery.” The former FTX executive pleaded guilty to conspiracy to operate an unlicensed money-transmitting business and engaging in campaign finance fraud.

According to the filing, a German Shepherd “mauled” Salame” on June 29 while he was visiting a friend’s home. Portions of the request were redacted, but they included a physician’s visit on July 3 and recommendations for treatment on July 24 “after sustaining a dog-bite injury to the face.”

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China Unearths Massive Gold Veins That Could Reshape Global Markets

Forcount crypto scheme promoters plead guilty to wire fraud conspiracy

On July 22, two of the five individuals who allegedly stole $8.4 million from investors between 2017 and 2021 by promoting Forcount pleaded guilty.

Two individuals indicted for their involvement in the Forcount cryptocurrency Ponzi scheme have pleaded guilty to charges in a New York courtroom.

In a July 22 hearing at the United States District Court for the Southern District of New York, Antonia Perez Hernandez and Nestor Nunez pleaded guilty to conspiracy to commit wire fraud related to the Forcount scheme. Hernandez, Nunez and others allegedly pilfered $8.4 million from mostly Spanish-speaking investors between 2017 and 2021 by promoting crypto trading and mining on Forcount, promising significant returns.

Of the five defendants in the case charged in 2022, Juan Tacuri has also pleaded guilty. He was one of the promoters who traveled across the US to host presentations in which he convinced investors to sign up for Forcount. As part of a deal with prosecutors announced in June, he agreed to forfeit roughly $4 million and properties purchased with victims’ funds.

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China Unearths Massive Gold Veins That Could Reshape Global Markets

2 Foreign Nationals Plead Guilty in Lockbit Ransomware Case

2 Foreign Nationals Plead Guilty in Lockbit Ransomware CaseTwo foreign nationals pleaded guilty in Newark federal court regarding their participation in the Lockbit ransomware organization, the U.S. Department of Justice (DOJ) revealed on Thursday. Russian citizen Ruslan Magomedovich Astamirov and Mikhail Vasiliev, a dual citizen of Canada and Russia, were identified as members of the Lockbit group. Active since January 2020, this group […]

China Unearths Massive Gold Veins That Could Reshape Global Markets

Judge reduces Ethereum dev’s prison sentence by 7 months

Virgil Griffith could be eligible for release as early as January 2025 after pleading guilty to violating US sanctions on North Korea.

A federal judge has granted a motion to reduce the sentence for former Ethereum developer Virgil Griffith, who pleaded guilty to violating sanctions on North Korea.

In a July 16 filing in the United States District Court for the Southern District of New York, Judge Kevin Castel signed off on an order reducing Griffith’s previously imposed sentence of 63 months in prison to 56 months. Judge Castel said the sentence would be effective as of Aug. 2, suggesting he would be eligible for release in January 2025.

Griffith spoke at a cryptocurrency and blockchain conference in the North Korean capital city of Pyongyang in 2019, giving more than one presentation about how the country could use crypto to evade sanctions and for money laundering. He pleaded guilty in 2021 before his criminal trial was expected to begin, and in April 2022, he was sentenced to 63 months in prison and ordered to pay a $100,000 fine.

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China Unearths Massive Gold Veins That Could Reshape Global Markets

Sentencing for ex-FTX execs set for October, November

Former FTX executives Nishad Singh and Gary Wang, who both testified at Sam Bankman-Fried’s criminal trial, are scheduled to be sentenced later this year.

A federal judge who oversaw the trial of former FTX CEO Sam “SBF” Bankman-Fried has scheduled sentencing hearings for FTX co-founder Gary Wang and former engineering director Nishad Singh.

In a July 9 docket entry in the US District Court for the Southern District of New York, Judge Lewis Kaplan said Singh’s sentencing would be held on Oct. 30, and Wang’s was set for Nov. 20. There was no mention of Caroline Ellison, the former CEO of Alameda Research who testified at SBF’s 2023 trial, at the time of publication.

Wang and Ellison were among the first to plead guilty to charges related to their roles in the collapse of the now-defunct cryptocurrency exchange FTX in 2022. Singh pleaded guilty to multiple felony counts, including fraud and money laundering, in February 2023. The three former executives testified against Bankman-Fried in his criminal trial, which likely contributed to Judge Kaplan sentencing the former CEO to 25 years in prison. 

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China Unearths Massive Gold Veins That Could Reshape Global Markets