CEO of Cryptsy for fraud in crypto investors and destruction of evidence charged-regulation

The CEO of the cryptocurrency exchange Cryptsy was charged in the USA. The indictment from 17 indictment points accuses the managing director of the crypto tour "Tax evasion, transfer fraud, money laundering, computer fraud, manipulation of records, documents and other objects and destruction of records". in a federal investigation, ”said the doj.

The CEO of Cryptsy is faced with an indictment in 17 points

The US Justice Ministry (DOJ) announced on Wednesday that Paul E. Vernon, the founder, operator and Chief Executive Officer (CEO) by Project Inc., who was operated as Cryptsy.

An indictment with 17 indictment points was made, in which Vernon, 48, "criminal violations because of his participation in a sophisticated theft plan with its exchange of cryptocurrencies" was charged with the announcement details and added:

The accusations include tax evasion, transfer fraud, money laundering, computer fraud, manipulation of records, documents and other objects as well as the destruction of records in a federal examination.

According to the indictment, Vernon has asked investors to save and act cryptocurrencies on the Cryptsy platform.

However, "Between May 2013 and May 2015, Vernon used his control over Cryptsy's accounts, known as Wallets, to steal over a million dollars from Cryptsy's cryptocurrency wallets," said the Doj.

Then he deposited the stolen funds in his personal crypto pocket, which he then transferred to his personal bank account. The doj emphasized:

At no time during this period, Vernon has disclosed this theft of his customers' money from the Cryptsy money exchanges of its customers.

In July 2014, Vernon Cryptsy employee informed that the stock exchange was hacked by unknown hackers and Bitcoin and other cryptocurrencies worth more than five million dollars were stolen.

Nevertheless, the platform continued normally for six months and campaigned for new customers without telling them that their security had been compromised, the Ministry of Justice.

said

in November 2015, Vernon moved to China and publicly informed Cryptsy customers about the 2014 hack and the loss of Bitcoins and other cryptocurrencies.

The Ministry of Justice also found that after the notification that Cryptsy was in bankruptcy management in April 2016:

Vernon chopped into Cryptsy servers from a distant location, Stahl Cryptsy's database with customer money and destroyed the customer database to hide its illegal activities.

In addition, the indictment claims that Vernon has tried to bypass its federal income tax obligations for 2014 and 2015.

What do you think about this case? Let us know in the comment area below.

Kevin Helms

As a student of Austrian economics, Kevin Bitcoin discovered in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

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