Security

Captain Max

James

Coin

Manhattan District Attorney Alvin Bragg announced criminal charges against an individual for using a “sham cryptocurrency asset recovery business” to defraud customers.
In an Aug. 1 notice, the New York Country District Attorney’s (DA) office <a href="https://manhattanda.org/d-a-bragg-announces-charges-against-man-who-used-scam-crypto-recovery-website-to-steal-from-hopeful-customers/" target="_blank" rel="noopener nofollow">said</a> it had charged Michael Lauchlan with three counts of grand larceny and two counts of scheme to defraud for his role in stealing from Coin Dispute Network users. According to the DA, the “sham” platform claimed to be able to trace and recover lost crypto assets, but instead, it bilked customers out of fees and stole Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) from at least three users.
“Michael Lauchlan allegedly exploited his customers’ lack of experience with the cryptocurrency industry and in turn fleeced them out of thousands of dollars in sham services and stolen assets,” said Homeland Security Investigations New York Special Agent in Charge Ivan Arvelo.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/457d4227-282f-4a35-a577-671e247952c9.png" alt="NY authorities announce charges related to ‘sham’ crypto recovery firm" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/ManhattanDA/status/1819012670638428470" target="_blank" rel="noopener nofollow">Alvin Bragg</a>
 </figcaption>
</figure>
Coin Dispute Network offered blockchain analysis and tracing and assistance in recovering crypto transactions between July 2022 and June 2023. Bragg’s office seized the firm’s website in June 2023. Authorities arrested Lauchlan, who also goes by the alias&nbsp;Max Handler, in Las Vegas on July 9.&nbsp;
Related: <a href="https://cointelegraph.com/news/uk-police-seize-criminal-crypto-without-arrests">UK police authorized to seize criminal crypto holdings without arrests</a>
The New York County DA seized roughly $14,000 in user funds transferred to CoinEx by Coin Dispute Network. According to the complaint, more than 175 people were affected by alleged false claims from Coin Dispute Network being able to recover lost crypto. 
Federal and state authorities in New York have taken several actions against crypto firms operating outside regulatory guidelines and individuals allegedly associated with illicit practices. Former FTX CEO <a href="https://cointelegraph.com/top-people-in-crypto-and-blockchain-2023/sam-bankman-fried-and-caroline-ellison">Sam Bankman-Fried</a> was charged, tried, convicted and sentenced in a New York courtroom. New York Attorney General Letitia James has also <a href="https://cointelegraph.com/news/novatech-crypto-fraud-licensing-misrepresentation-aws-mining">filed lawsuits for residents</a> who lost money to certain crypto firms.
Magazine: <a href="https://cointelegraph.com/magazine/hackers-crypto-wallets-recover-savings/">Meet the hackers who can help get your crypto life savings back</a>

NY authorities announce charges related to ‘sham’ crypto recovery firm

Cointelegraph

Other articles published on Aug 1, 2024

Bitcoin Faces Strong Selling Pressure, Liquidations Surge to $56 Million After Fed Meeting

Bitwise exec says, ‘We’re not bullish enough,’ amid political sway to crypto

Curve DAO (CRV) soars 11% amid market downturn, Here’ why

Shiba Inu Burn Rate Plummets in July: What It Means for SHIB

Ethereum Spot ETFs Debut in U.S. Exchanges, Supported by Major Issuers

Australia’s Big Banks Block Crypto Payments Amid Rising Crypto Popularity

Join our free newsletter for daily crypto updates!