Connect with us

Crypto

Man pleads guilty in failed ransom plot that may have been linked to $240M crypto heist

Published

on

Man pleads guilty in failed ransom plot that may have been linked to 0M crypto heist

HARTFORD, Conn. — A Florida man pleaded guilty Thursday in connection with the carjacking and kidnapping of a Connecticut couple, in what authorities called a failed ransom plot that may have been linked to a $240 million cryptocurrency heist.

Michael Rivas, 19, of Miami, was one of six men arrested after a series of events in Danbury on Aug. 25. He pleaded guilty to kidnapping and conspiracy charges in federal court in Hartford. Two others are expected to enter similar pleas in the same court on Friday.

The couple were driving in a new Lamborghini SUV when the suspects forced them out of the SUV, assaulted them, put them in a van and bound them, police said. Witnesses immediately alerted police. Four of the men were arrested after abandoning their vehicles including the van and fleeing on foot, while the other two were later taken into custody at a nearby home the group had rented through Airbnb, authorities said. The couple were injured but survived the ordeal.

Rivas, dressed in a tan prison uniform with his legs shackled during the hearing, apologized for his actions. He said it was a “dumb” decision to help one of his co-defendants carry out what he called a “vendetta.” He did not elaborate.

His lawyer, Brian Woolf, said Rivas accepted a co-defendant’s invitation to take part in the plot with the hope of getting a share of the ransom money, and he regrets that decision.

Advertisement

The plot was hatched because the suspects “believed the victims’ son had access to significant amounts of digital currency,” and they planned to demand a ransom from the son to be paid in digital currency,” according to a federal indictment.

Just a week earlier, at least two thieves had stolen $240 million worth of Bitcoin in an elaborate scam over the internet and by phone, and then went on an indulgent spending spree on cars, mansions, travel, jewelry and nights out at clubs, authorities said.

Publicly, federal prosecutors and agents have not definitively linked the kidnapping to the Bitcoin theft. Officials have declined to comment on possible connections between the two cases including how the six suspects knew the couple’s son had a large amount of digital currency.

But federal agents told Danbury police that the FBI was looking into whether the couple’s son was involved in the Bitcoin theft, Danbury Detective Sgt. Steven Castrovinci told The Associated Press. Neither Danbury police nor federal authorities have named the couple or their son.

Assistant U.S. Attorney Ross Weingarten declined to comment after Thursday’s court hearing.

Advertisement

In mid-September, federal prosecutors announced that the two men, Malone Lam, 20, and Jeandiel Serrano, 21, had been indicted on charges of conspiracy to commit wire fraud and conspiracy to launder monetary instruments in connection with the cryptocurrency theft.

Court documents say unnamed coconspirators were in on the scam with the two men. Their lawyers have not responded to requests for comment.

Prosecutors said in court documents that Lam, Serrano and the unnamed coconspirators posed as technical support staff for Google and a cryptocurrency exchange while contacting the victim of the theft with an offer to help him with a supposed security breach.

The victim, from Washington, D.C., believed them and gave them remote access to his computer on Aug. 18. That resulted in the alleged thieves making off with more than 4,100 Bitcoin, then valued at more than $240 million, prosecutors said. That amount of Bitcoin is now worth nearly $380 million.

According to prosecutors, Serrano, of Los Angeles, admitted during an interview with federal investigators that he used the stolen currency to buy three automobiles, worth more than $1 million in total, as well as a $500,000 watch. He also said he had about $20 million of the victim’s currency and agreed to transfer the funds to the FBI, authorities said.

Advertisement

Meanwhile Lam, a citizen of Singapore who had addresses in Los Angeles and Miami, Florida, was spending hundreds of thousands of dollars a night at Los Angeles night clubs and acquiring custom Lamborghinis, Ferraris and Porsches, prosecutors said. He also was renting two Miami mansions, bought a $2 million watch and had a Lamborghini Revuelto worth more than $1 million.

Federal prosecutors said in court documents that at least $100 million of the stolen funds remained missing.

Exactly a week after the crypto theft, the couple from Danbury, a city of more than 80,000 people along the New York border, were forced out of their SUV in their hometown after one of the carjackers’ vehicles rear-ended them and two other vehicles surrounded them. The group assaulted the man with a baseball bat and dragged the woman by her hair as they put them in the van, where the couple were bound with duct tape, police said.

“I’m deeply remorseful for my irresponsible behavior,” Rivas told U.S. District Judge Sarala Nagala on Thursday. “I should have known better.”

“This is not what my parents taught me growing up,” he added.

Advertisement

Rivas and the other five men also are facing kidnapping and assault charges in Connecticut state court. The other men are also from Florida.

Sentencing was set for May 13. The prosecution and defense agreed on sentencing guidelines that call for about 11 to 14 years in prison.

Crypto

Exclusive: White House set to meet with banks, crypto companies to broker legislation compromise

Published

on

Exclusive: White House set to meet with banks, crypto companies to broker legislation compromise

Jan 28 (Reuters) – The White House on Monday will meet with executives from the banking and cryptocurrency industries to discuss a path forward for landmark crypto legislation which has stalled due to ​a clash between the two powerful sectors, said three industry sources.

The summit hosted by the White House’s crypto council ‌will include executives from several trade groups. It will focus on how the bill treats interest and other rewards crypto firms can dish out on customer holdings of dollar-pegged tokens known as stablecoins, the people said.

Sign up here.

The White House meeting could help the industries, which have been fighting head-to-head over the bill, reach a compromise, and underscores how keen President Donald Trump’s administration is to get the legislation across the line. Trump courted crypto ‌cash on the campaign trail, promising to promote the adoption of crypto assets.

Reuters was first to report ​the meeting.

The White House did not immediately respond to a request for comment. The sources declined to be identified discussing private policy discussions.

Advertisement
Summer Mersinger, CEO of the Blockchain Association which represents crypto giants including Coinbase (COIN.O), opens new tab, Ripple and Kraken, said in a statement the group ‍is “proud to participate in next week’s meeting.”

“We look forward to continuing to work with policymakers across the aisle so Congress can advance lasting market structure legislation and ensure the United States remains the crypto capital of the world,” she said.

Cody Carbone, CEO of The Digital Chamber, another major crypto trade group, credited ⁠the White House with “pulling all sides to the negotiating table.”

The Senate has for months been working on the bill, dubbed the Clarity ‍Act, which aims to create federal rules for digital assets, the culmination of years of crypto industry lobbying. Crypto companies have long argued that existing ‌rules are ‌inadequate for digital assets, and that legislation is essential for companies to continue to operate with legal certainty in the U.S.

The House of Representatives passed its version of the bill in July.

The Senate Banking Committee was scheduled earlier this month to debate and vote on the bill, but the meeting was postponed at the last minute, in part due to concerns among lawmakers and both industries over the interest ⁠issue.

Advertisement
There were also disagreements among Republicans ⁠about the bill’s stablecoin provisions, ​according to two other people with knowledge of the discussions, and senators leading the effort bill were concerned that it would not get enough votes to advance.

Crypto companies say providing rewards such as interest is crucial for recruiting new customers and that barring them from doing so would be anti-competitive. ‍Banks say the increased competition could result in insured lenders experiencing an exodus of deposits — the primary source of funding for ⁠most banks — potentially threatening ⁠financial stability.

A report from Standard Chartered on Tuesday estimated that stablecoins could pull around $500 billion in deposits out of U.S. banks by the end of 2028.
The provision at issue stems from ​a law passed last year which created a federal regulatory framework for stablecoins, potentially paving ‍the way for greater stablecoin adoption.

That bill prohibited stablecoin issuers from paying interest ‌on ‌cryptocurrencies, but banks say it left open a loophole that would allow for third parties – such ​as crypto exchanges – to pay yield on tokens, creating new competition for deposits.

Reporting by Hannah Lang in New York; Editing by Chizu Nomiyama

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Continue Reading

Crypto

XRP Positions as Institutional Rail While RLUSD Enters Real-World Finance

Published

on

XRP Positions as Institutional Rail While RLUSD Enters Real-World Finance
XRP is cementing its role in live institutional payment infrastructure as Ripple’s RLUSD anchors regulated stablecoin settlement, signaling blockchain rails are now trusted, production-grade systems for global liquidity, cross-border payments, and high-value financial flows.
Continue Reading

Crypto

Crypto Crime Wave Fueled by Chinese-Language Money Laundering | PYMNTS.com

Published

on

Crypto Crime Wave Fueled by Chinese-Language Money Laundering | PYMNTS.com

Cryptocurrency laundering was an $82 billion problem last year, Bloomberg News reported Tuesday (Jan. 27), citing data from blockchain analysis firm Chainalysis.

Chinese-language money laundering networks made up $16.1 billion of that total as they play an increasing role in crypto crime, the report said.

“These are groups that are growing exponentially,” Andrew Fierman, head of national security intelligence at Chainalysis, told Bloomberg, per the report. “We’re talking about growth of over 7,300 times faster than other illicit flows.”

Although China has outlawed crypto transactions, illegal activity continues as the government chiefly focuses on behavior that threatens capital controls or financial stability, according to the report.

The networks “have really embraced cryptocurrencies,” said Kathryn Westmore, a senior associate fellow at the Centre for Finance and Security at RUSI, per the report, adding that crypto provides “a way to launder the proceeds of cash-generating criminal activities, like drugs or fraud.”

Advertisement

The news followed a warning from the Financial Crimes Enforcement Network (FinCEN) in August, which said Chinese money laundering networks are now among the most significant threats to the American financial system, helping fuel the operations of Mexico’s most powerful drug cartels.

Advertisement: Scroll to Continue

“The networks have become effective partners because they can move cash quickly, absorb losses and leverage demand from Chinese nationals seeking to bypass Beijing’s strict currency controls,” PYMNTS reported Aug. 29. “By pairing cartel dollars with Chinese demand for U.S. currency, these networks have created what FinCEN called a ‘mutualistic relationship’ that strengthens both sides.”

Meanwhile, Eric Jardine, head of research at Chainalysis, discussed last year’s record-setting levels of crypto crime with PYMNTS in an interview published Monday (Jan. 26). Around $154 billion flowed to illicit addresses, the most ever recorded, and there was a 160% increase in illicit volumes.

“But treating that number as evidence of runaway criminal adoption may miss the more consequential story,” PYMNTS wrote. “What changed in 2025 was not merely volume, but the identity of the actors, the scale at which they operated, and the implications this has for banks, regulators, and the future architecture of financial blockchain compliance.”

Advertisement

The true inflection came from “a shift in who’s doing what,” Jardine said, adding that in 2025, nation states, most notably Russia, began taking part “in earnest in the crypto ecosystem,” chiefly through sanctions evasion.

Unlike earlier state-linked activity, like North Korea’s hacking campaigns, this was not marginal behavior at the edges of the system, but “industrial-scale financial activity conducted in plain sight,” PYMNTS wrote.

Continue Reading

Trending