Crypto

Justice Dept. Seizes Over $112M in Funds Linked to Cryptocurrency Investment Schemes, With Over Half Seized in Los Angeles Case

Published

2 years ago

April 3, 2023

Justice Dept. Seizes Over 2M in Funds Linked to Cryptocurrency Investment Schemes, With Over Half Seized in Los Angeles Case

LOS ANGELES – The Division of Justice introduced at present that it has seized digital forex value an estimated $112 million linked to cryptocurrency funding scams generally known as “pig butchering.”

Seizure warrants for six digital forex accounts had been approved by judges in Los Angeles, the District of Arizona, and the District of Idaho. Within the Los Angeles matter, a United States Justice of the Peace choose approved the seizure of an account containing roughly $66.4 million in numerous cryptocurrencies after discovering possible trigger that the funds had been derived from wire fraud schemes.

In accordance with courtroom paperwork, the six digital forex accounts had been used to launder proceeds of varied cryptocurrency confidence scams. In these schemes, fraudsters cultivated long-term, on-line relationships with victims, finally attractive them to make investments in fraudulent cryptocurrency buying and selling platforms. In actuality, the funds despatched by victims for these purported investments had been as an alternative funneled to cryptocurrency addresses and accounts managed by scammers and their co-conspirators.

“The victims in Pig Butchering schemes are known as ‘pigs’ by the scammers as a result of the scammers will use elaborate storylines to ‘fatten up’ victims into believing they’re in a romantic or in any other case shut private relationship,” in keeping with the affidavit in help of the Los Angeles seizure warrant. “As soon as the sufferer locations sufficient belief within the scammer, the scammer brings the sufferer right into a cryptocurrency funding scheme.”

The scammer makes an attempt to create the looks of legitimacy by fabricating web sites or cell apps to show a bogus funding portfolio with massive returns, the affidavit states. In relation to the Los Angeles-based account seizure, the FBI has recognized no less than 10 victims who had been unable to withdraw funds that they had invested, with the seized account containing some funds from all 10 victims.

Authorities executed the Los Angeles seizure warrant in December and obtained the final switch of cryptocurrency on March 21.

“Utilizing the strategies of conventional con artists, high-tech fraudsters have taken benefit of the publicity and hype surrounding cryptocurrency to encourage an untold variety of People to spend money on get-rich-quick schemes,” mentioned United States Legal professional Martin Estrada. “Everyone knows that funding scams aren’t new, however using digital forex to commit fraud presents new challenges to victims and to regulation enforcement attempting to get better misplaced funds – which probably whole billions of {dollars} within the so-called ‘pig butchering’ schemes. The foremost seizures introduced at present present that regulation enforcement is confronting the brand new challenges and taking robust measures to handle this fraud, however the public ought to be extraordinarily cautious of funding scams that use cryptocurrency and promise unrealistic returns.”

The affidavit within the Los Angeles seizure warrant mentioned a collection of cryptocurrency funding scams, one among which focused knowledgeable girl who was contacted on LinkedIn by a person who used the title “Fei Kuang.” After studying that the sufferer already had a small cryptocurrency account, “Fei Kuang” provided to assist the sufferer, finally convincing her to take a position more cash and to maneuver her funds to a different, presumably fraudulent, buying and selling trade. When she tried to withdraw her funds, she was informed she needed to pay a 20% in “taxes.” When the buying and selling platform continued to demand more cash, the girl realized she was the sufferer of a rip-off which price her roughly $2.5 million.

“Transnational legal organizations are combining confidence scams with technological savvy to swindle People out of their hard-earned funds,” mentioned Assistant Legal professional Common Kenneth A. Well mannered, Jr. of the Justice Division’s Felony Division. “These significantly vicious frauds – the place scammers rigorously domesticate relationships with their victims over time – have devastated households and value people their life financial savings. Now that we’ve got seized this digital forex, we’ll search to swiftly return it to victims. Along with our tireless efforts to disrupt these schemes, we should additionally work to boost public consciousness and assist inform potential victims: be cautious of individuals you meet on-line; critically query funding recommendation, particularly about cryptocurrency, from individuals you haven’t met in particular person; and keep in mind, investments that appear too good to be true, normally are.”

In 2022, funding fraud induced the best losses of any rip-off reported by the general public to the FBI’s Web Crimes Grievance Heart (IC3), totaling $3.31 billion. Frauds involving cryptocurrency, together with pig butchering, represented most of those scams, rising 183% from 2021 to $2.57 billion in reported losses final 12 months.

In accordance with the FBI, the best variety of reviews got here from victims between the ages of 30 and 49. In these schemes, usually known as “Sha Zhu Pan,” a Chinese language phrase that loosely interprets to “pig butchering,” scammers usually goal their victims by social networking and on-line communications platforms, courting web sites, and cellphone calls and textual content messages that should seem to have been misdialed. After gaining the belief of their victims – typically over a interval of months – scammers finally introduce the thought of buying and selling in cryptocurrency. They then direct victims to cryptocurrency funding platforms or to co-conspirators posing as funding advisors or customer support representatives. Scammers management web sites which can be constructed to appear to be professional buying and selling platforms, functions that victims obtain onto their telephones, or malicious sensible contracts accessed by cryptocurrency pockets software program.

As soon as victims make an preliminary “funding,” the platforms purport to point out substantial features. Typically, victims are even allowed to withdraw a few of these preliminary features to additional engender belief within the scheme. It’s not till a big funding is made that victims discover that they’re unable to withdraw their funds.

Even when a sufferer is denied entry to their funds, the fraud is commonly not but over. Scammers request further investments, taxes or charges, promising that these funds will permit victims entry to their accounts. These rip-off operations usually proceed to steal from their victims and don’t cease till they’ve disadvantaged victims of any remaining financial savings.

“Depriving rip-off organizations of their ill-gotten features is a vital a part of our technique to fight these ruthless schemes,” mentioned Director Eun Younger Choi of the Felony Division’s Nationwide Cryptocurrency Enforcement Workforce (NCET). “We’ll proceed to make use of all instruments at our disposal to disrupt and deter cryptocurrency confidence schemes, together with by following the cash on the blockchain and seizing cryptocurrency to return funds to victims, and by focusing on and taking down on-line infrastructure utilized by the scammers. At the moment’s bulletins additionally show the worth of early notification by victims to regulation enforcement; we thank these victims who got here ahead to inform the FBI after they had been focused by this scheme.”

The FBI Phoenix Division is investigating the matter that resulted in seizures introduced at present.

Assistant United States Legal professional Daniel Boyle of the Asset Forfeiture and Restoration Part is dealing with the Los Angeles case. The opposite circumstances are being dealt with by the District of Arizona and the District of Idaho. The NCET and the Felony Division’s Fraud Part offered substantial help and coordination.

Should you or somebody is a sufferer, go to www.fbi.gov/cryptoguard, contact your native FBI area workplace (the Los Angeles Subject Workplace will be reached at 310-477-6565), name 1-800-CALL-FBI, or report it to IC3.gov. In your grievance, please reference, “Pig Butchering PSA.” Embody as a lot data as potential in your grievance together with names of funding platforms, cryptocurrency addresses and transaction hashes, checking account data, and names and phone data of suspected scammers. Preserve copies of all communications with scammers and data of monetary transactions.

Crypto

Rivalry Adds $TRUMP Meme Coin as Crypto Payment Method

Published

6 hours ago

January 19, 2025

Press Room

Rivalry Adds $TRUMP Meme Coin as Crypto Payment Method

TORONTO, Jan. 18, 2025 (GLOBE NEWSWIRE) — Rivalry Corp. (the “Company” or “Rivalry”) (TSXV: RVLY) (OTCQX: RVLCF) (FSE: 9VK), the leading sportsbook and iGaming operator for digital-first players, today announced it has added U.S. President-elect Donald Trump’s official Solana cryptocurrency ‘$TRUMP’ as an accepted payment method.

Ahead of the U.S. Presidential Inauguration on January 20th, Rivalry users are now able to deposit and wager using $TRUMP, a cryptocurrency on the Solana blockchain which currently has a fully diluted value of over USD $30 billion. The addition of $TRUMP as a payment method on Rivalry comes less than 24 hours after the President-elect released the cryptocurrency on Friday evening.

”Meme coins are attention monetized, and the release of $TRUMP just days before an Inauguration is a quintessential internet and crypto culture-driven moment which enabled it to eclipse $30 billion in fully diluted value shortly after its debut” said Steven Salz, Co-Founder and CEO of Rivalry. “Rapidly deploying $TRUMP as a deposit method in less than 24 hours is a testament to our ability to identify and lean into these universal cultural moments, layer it into our core crypto gambling experience, and deliver first-of-its-kind experiences to our users.”

Additionally, Rivalry customers wagering on-site with $TRUMP will receive exclusive rewards through February 1, 2025 in recognition of the upcoming Presidential Inauguration, including multiplying the amount of NUTZ–the Company’s native token–players earn on every bet by 20x, a reflection of the inauguration on Monday, January 20, 2025.

With the acceptance of $TRUMP, along with a number of other major cryptocurrencies as part of Rivalry’s crypto-first approach, the Company has ongoing treasury holdings of various major cryptocurrencies and meme coins that it accepts as a deposit option. The Company will continue to add additional cryptocurrencies as needed to support its player base and continual expansion into the crypto gambling segment.

$TRUMP as a payment method will be available to Rivalry users in jurisdictions which apply to the Company’s Isle of Man license only.

About Rivalry

Rivalry Corp. wholly owns and operates Rivalry Limited, a leading sport betting and media company offering fully regulated online wagering on esports, traditional sports, and casino for the digital generation. Based in Toronto, Rivalry operates a global team in more than 20 countries and growing. Rivalry Limited has held an Isle of Man license since 2018, considered one of the premier online gambling jurisdictions, as well as an internet gaming registration in Ontario, and is currently in the process of obtaining additional country licenses. With world class creative execution and brand positioning in online culture, a native crypto token, and demonstrated market leadership among digital-first users Rivalry is shaping the future of online gambling for a generation born on the internet.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Company Contact:
Steven Salz, Co-founder & CEO
ss@rivalry.com

Investor Contact:
investors@rivalry.com

Media Contact:
Cody Luongo, Head of Communications
cody@rivalry.com
203-947-1936

Cautionary Note Regarding Forward-Looking Information and Statements

This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws (“forward-looking statements”). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “project” and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions “may” or “will” occur. These statements are only predictions.

Forward-looking statements are based on the opinions and estimates of management of the Company at the date the statements are made based on information then available to the Company. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include regulatory or political change such as changes in applicable laws and regulations; the ability to obtain and maintain required licenses; the esports and sports betting industry being a heavily regulated industry; the complex and evolving regulatory environment for the online gaming and online gambling industry; the success of esports and other betting products are not guaranteed; changes in public perception of the esports and online gambling industry; failure to retain or add customers; the Company having a limited operating history; negative cash flow from operations; operational risks; cybersecurity risks; reliance on management; reliance on third parties and third-party networks; exchange rate risks; risks related to cryptocurrency transactions; risk of intellectual property infringement or invalid claims; the effect of capital market conditions and other factors on capital availability; competition, including from more established or better financed competitors; and general economic, market and business conditions. For additional risks, please see the Company’s management’s discussion and analysis for the three and nine months ended September 30, 2024 under the heading “Risk Factors”, and other disclosure documents available on the Company’s SEDAR+ profile at www.sedarplus.ca.

No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.

Source: Rivalry Corp.

Crypto

Trump launches meme coin ahead of inauguration

Published

14 hours ago

January 18, 2025

Press Room

Trump launches meme coin ahead of inauguration

Analysis: Trump plans to take Greenland, Canada, and Panama Canal

On Tuesday, President-elect Trump refused to rule out military action to pursue his unprecedented vow to take Greenland and the Panama Canal — plus absorb Canada. Why has he set his sights on expanding beyond the United States’ borders? Jim discusses that with Jim Zirin of Washington Monthly on “The Final 5.”

President-elect Donald Trump has launched a new meme coin called $TRUMP. He made the announcement in a post on Truth Social post late Friday, describing the cryptocurrency as a celebration of “WINNING” the presidential election.

Analysts say it has the potential to make a lot of money for Trump and his family, but some ethics experts say it’s another effort to cash in on the nation’s highest office.

What is the $TRUMP coin?

The new Trump-backed meme coin is a cryptocurrency token with an image of Trump following his assassination attempt.

It was developed by Solana, a cryptocurrency and blockchain company, with a limited supply of 200 million $TRUMP coins at initial launch. The supply will expand to 1 billion coins over the next three years, the coin’s website states.

The remaining tokens that haven’t been put up for sale yet are owned by the Trump Organization affiliate CIC Digital LLC and Fight Fight Fight LLC, a company formed in Delaware on Jan. 7, state filings show. Forbes reports that both companies will receive an undisclosed amount of revenue from the coin trade.

By the numbers:

The price of $TRUMP increased by more than 300% to just below $29 as of 10:15 a.m. ET Saturday. It reached a market cap of $5.81 billion, according to CoinMarketCap data obtained by Forbes.

$TRUMP disclaimer

There’s a disclaimer on the $TRUMP website stating that the token is “not intended to be, or the subject of” an investment opportunity nor a security of any type, and is “not political and has nothing to do with” any political activity or government agency.

RELATED: Millionaire says he’s buried $2M in hidden treasures across the US

Why are meme coins risky?

Dig deeper:

Although all cryptocurrency carries risk, meme coins can be especially risky for traders, an expert told CNBC.

“Meme coins are among the riskiest of cryptocurrencies because they seem to emerge from nowhere and information about them can be sparse,” he says. “They’re expected to soar and plummet as the public sentiment shifts this way and that. Meme coins may capture the public’s fancy today and be gone tomorrow.”

Why are Trump’s meme coins considered unethical?

The other side:

Ethics attorneys called the latest venture by Trump and his family a blatant effort to profiteer from the presidency.

“It is literally cashing in on the presidency — creating a financial instrument so people can transfer money to the president’s family in connection with his office” Adav Noti, executive director of Campaign Legal Center, a nonprofit ethics group, told The New York Times. “It is beyond unprecedented.”

Crypto surges after Trump win

The backstory:

The price of bitcoin topped $100,000 again early Friday as a pumped up cryptocurrency industry expects early action by Trump when he’s sworn in as president next week.

RELATED: Crypto markets surge after Trump’s election victory

Once a skeptic who said a few years ago that bitcoin ” seems like a scam,” Trump has embraced digital currencies with a convert’s zeal. He vowed on the campaign trail to take steps early in his presidency to make the U.S. into the “crypto capital” of the world.

His promises including creating a U.S. crypto stockpile, enacting industry-friendly regulation and event appointing a crypto “czar” for his administration.

“You’re going to be very happy with me,” Trump told crypto-enthusiasts at a bitcoin conference last summer.

By the numbers:

According to Forbes, bitcoin hit several new record highs after Trump’s win, surpassing $100,000 within a month of Election Day. Roughly $1.8 trillion was added to the global crypto market’s aggregate market value in 2024, and $1 trillion of that was since Election Day, according to CoinGecko via Forbes.

Other Trump merchandise

Big picture view:

Trump’s meme coin is one of several products he has launched in recent years. He has a line of perfumes and colognes, along with “Trump Watches” celebrating his election win. His pre-win “Trump Watches” were valued up to $100,000 in September, and there was also the debut of $100 silver coins, 1,000 pairs of limited edition sneakers, $60 Trump-branded bibles and NFT cards, according to Forbes. Trump also released a line of signed and unsigned guitars sold at $11,500 and $1,500 each, respectively, for $4.6 million in sales.

Trump has received the bulk of his merchandise revenue through his NFTs, which reportedly earned him about $7.2 million in licensing fees.

Donald J. TrumpMoney

Crypto

Commerce Nominee Lutnick Is Backer of Outlaws’ Favorite Cryptocurrency

Published

21 hours ago

January 18, 2025

Press Room

Commerce Nominee Lutnick Is Backer of Outlaws’ Favorite Cryptocurrency

To the crypto company Tether, the account was identified only by a 31-character string: TTAHMdqoom4f2VTWniroPWQHcTRZ4ca.

It’s a cryptocurrency wallet address, one of more than 300 million around the world that have held Tether tokens and make up a global unregulated payments network. Unlike a bank or fintech company, Tether collects no personal information about most of its users. Anyone can open a crypto wallet and move money with Tether quickly, cheaply and anonymously.