24 yr previous Joseph Kim of Phoenix, Arizona, has been sentenced to 15 months in jail for cryptocurrency-related fraud, in response to the Illinois US Lawyer’s Workplace.
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Particularly, he has been convicted of stealing at the very least $600,000 in Bitcoin and Litecoin from an ex-employer and $545,000 from private pals, making a complete of $1.145 million . He used the proceeds for his private enrichment.
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Kim labored as an assistant dealer for Consolidated Buying and selling, a Chicago-based agency which affords buying and selling in currencies and commodities. The corporate just lately opened a cryptocurrency buying and selling desk. Engaged on this desk, Kim coated his personal buying and selling losses by stealing Bitcoin and Litecoin belonging to the corporate, and lied about it when requested.
He was found and fired, at which level he started soliciting cash from pals and pals of pals telling them that he voluntarily left his job. In accordance with the indictment, a few of these individuals gave him their retirement financial savings. He continued the identical sample of behaviour, incurring private losses, however gave these pals documentation falsely indicating that his trades had been worthwhile.
The crimes occurred over a two-month interval.
Kim pleaded responsible to 1 rely of wire fraud at his trial. 4 buyers testified in opposition to him, and the Commodity Futures Buying and selling Fee additionally filed expenses.
Sunil Harjani and Sheri Mecklenburg, Assistant U.S. Attorneys, stated within the sentencing doc: “It can be crucial that the general public know that regardless of the complexity of cryptocurrency buying and selling, the prison justice system will maintain merchants and funding professionals accountable for dishonest and stealing.”
In June 2018, 50-year previous LA resident named Theresa Tetley obtained 30 months for working a Bitcoin enterprise for 3 years, which included processing at the very least one drug deal.
In September, a Texas resident was sentenced to 21 months for his involvement in a Ponzi scheme based mostly on 4 fraudulent Bitcoin mining corporations. This fraud took $9 million from buyers. Along with jail time, Homero Joshua Garza was ordered to pay $9.1 million in restitution.
None of those examine to 24-year-old Ross William Ulbricht who was sentenced to life with out the potential for parole in 2015 for working a Bitcoin-based market known as the Silk Street.
Ulbricht additionally hails from Texas. In January, the Texas State Securities Board served a stop and desist order to the notorious BitConnect, which had been working there from the UK, and to AriseBank, which described itself as “the world’s first decentralized cryptocurrency financial institution”, however was not registered as a financial institution. Then in November, it halted the Texas-based actions of a really dodgy firm which claimed to working from Quebec.
In April, the TSSB accomplished a four-week investigation of unlawful cryptocurrency-based schemes, discovering 32 in operation within the state, of which at the very least six had some Ponzi-like traits.