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US Government Seeks Forfeiture of 200,000 USDT Tied to Bitcoin Theft in Ohio

US Government Seeks Forfeiture of 200,000 USDT Tied to Bitcoin Theft in OhioThe U.S. government is taking legal action to seize 200,000 tether (USDT), worth $200,000, linked to a major cryptocurrency fraud. The funds, converted from stolen bitcoin, could soon be returned to the Ohio victim after a forfeiture trial. Investigators used blockchain technology to track the illicit funds, leading to their freeze and eventual federal seizure. […]

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FBI Seizes $2.5M in Crypto From Thailand-Based Pig Butchering Scam Targeting Americans

FBI Seizes .5M in Crypto From Thailand-Based Pig Butchering Scam Targeting AmericansThe U.S. Attorney’s Office has launched a civil forfeiture action to reclaim cryptocurrency seized by the FBI from international fraudsters involved in “pig butchering” schemes. This initiative aims to return the stolen funds to victims and hold criminals accountable. “The rate at which bad actors are using elaborate pig-butchering scams to defraud innocent people is […]

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DOJ Selects Coinbase to Provide Crypto Services to US Marshals Service

DOJ Selects Coinbase to Provide Crypto Services to US Marshals ServiceThe Department of Justice (DOJ)’s U.S. Marshals Service has selected crypto exchange Coinbase to provide crypto custody and trading services. The U.S. government’s contract, valued at over $32 million, aims to streamline the management and disposal of seized cryptocurrencies, ensuring professional and lawful handling. Coinbase Wins $32M Contract With US Marshals Service Crypto exchange Coinbase […]

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279 Crypto Accounts Forfeited to US Government in North Korean Laundering Crackdown

279 Crypto Accounts Forfeited to US Government in North Korean Laundering CrackdownThe U.S. District Court for the District of Columbia has ordered the forfeiture of 279 cryptocurrency accounts containing funds linked to alleged hacks of crypto exchanges by North Korean operatives. This measure is a component of a broader U.S. effort aimed at dismantling cyber operations that finance North Korea’s nuclear and missile initiatives. The decision […]

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Coinbase wins $470K restitution in insider trading case

The brother of a former Coinbase employee allegedly profited from an insider trading scheme and now has 20 years to repay the funds.

The brother of a former Coinbase employee has agreed to pay the cryptocurrency exchange nearly $470,000 for his role in an insider trading scheme.

According to a New York District Court filing signed on April 6 and made public on April 10, Nikhil Wahi — brother of former Coinbase product manager Ishan Wahi — will be required to begin making restitution payments while serving time in prison in what is believed to be the first insider trading case involving crypto.

The amount must be paid in full within 20 years of Nikhil’s release from prison and represents the amount Coinbase spent on legal services relating to the Department of Justice’s investigation.

In September 2022 Nikhil pleaded guilty to initiating trades based on confidential information obtained from his brother and is currently serving 10 months in prison for wire fraud conspiracy charges after being sentenced on Jan. 10.

Because of his position at Coinbase, prosecutors alleged Ishan knew when the exchange would be listing new cryptocurrencies and informed his brother Nikhil and an associate of theirs, Sameer Ramani, prior to the asset listings being publicly announced.

The prices of the listed cryptocurrencies generally rose after their listing, netting Nikhil $892,500 in profit, according to prosecutors. As part of his sentencing, Nikhil was required to forfeit these funds to the United States government.

Related: Coinbase head of exchange departs and plans to start new crypto project: Report

In a separate civil case, Coinbase defended the brothers and Ramani after the trio was sued by the Securities and Exchange Commission for violating antifraud provisions of U.S. securities laws.

In a March 13 amicus brief, Coinbase said that it condemns the defendants’ conduct but was supportive of a motion to dismiss the case as it argued the SEC had no jurisdiction to file a lawsuit given the tokens in question do not pass the Howey test — a U.S. legal doctrine that evaluates whether an asset is a security.

The SEC noted in an April 3 filing that it had reached an “agreement in principle” with Ishan to resolve the SEC’s claims and was also in “good faith discussions” with Nikhil.

Hodler's Digest, April 2-8: BTC white paper hidden on macOS, Binance loses AUS license and DOGE news

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US Government Plans to Sell Over 41,000 Bitcoins Confiscated from Silk Road Hacker

US Government Plans to Sell Over 41,000 Bitcoins Confiscated from Silk Road HackerAccording to a court document filed on March 31, 2023, regarding the sentencing of James Zhong, who stole over 50,000 bitcoin from the Silk Road marketplace, the U.S. government plans to liquidate 41,490 bitcoin “over the course of this calendar year.” U.S. Government Discloses Strategy for Selling Confiscated Bitcoin The U.S. government, one of the […]

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US Government Remains a Top Bitcoin Holder With Seized Stash Valued at $5.6 Billion

US Government Remains a Top Bitcoin Holder With Seized Stash Valued at .6 BillionAs of March 25, 2023, the U.S. government held 205,515 bitcoins worth $5.6 billion, which is approximately 1.06% of the circulating supply, according to current statistics. The cache of bitcoins is a result of three forfeitures that began in 2020. Glassnode’s on-chain data reveals that on March 9, about 9,860 bitcoins worth roughly $269 million […]

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South Korea Seizes $184 Million in Crypto Assets From Alleged Tax Dodgers, Reports Reveal

South Korea Seizes 4 Million in Crypto Assets From Alleged Tax Dodgers, Reports RevealThe government in South Korea has seized cryptocurrency worth around $184 million in two years due to tax arrears, according to local media. The authorities in Seoul started confiscating virtual assets from people accused of tax evasion in 2021. Almost 260 Billion Won in Crypto Seized for Tax Evasion in South Korea The amount of […]

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US Government Seizes Trezor Wallet With $6.3 Million in Bitcoin From Gift Card Fraud Case

US Government Seizes Trezor Wallet With .3 Million in Bitcoin From Gift Card Fraud CaseOn September 22, 2021, a U.S. district judge from San Antonio, Texas, granted a summary judgment on the civil forfeiture of 147 bitcoin worth $6.3 million held on a Trezor hardware wallet. According to the court filing, the crypto assets stemmed from a Target gift card fraud incident that started in 2016. Gift Card Fraud […]

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