Father and son imprisoned for operating fraudulent Bitcoin exchange.

Randall Bryan Lord and his son, Michael Aaron Lord, accepted currency, money orders, and money packs in exchange for bitcoins. Bitcoin is a decentralized form of electronic or digital currency, existing entirely on the Internet. Cryptocurrencies such as Bitcoin have no physical form. Contrary to law, the Lords were not registered with FinCEN. The [...]

Convicted sex offender guilty of running unlawful Bitcoin operation.

In 2009, Richard Petix was convicted of knowingly transporting child pornography in inter-state commerce. After this conviction, he was released under supervision. As a condition of his supervision, Petix was required to notify his probation officer of any computers he used and, if there was any impermissible or suspicious activity, he was to [...]

London man arrested for fraudulent sale of worthless cryptocurrency.

Cryptocurrency has had a recent surge in popularity, piquing making many people’s interest. To profit from this interest, one man in the UK set up a scam call-center or “boiler room”, selling non-exist ant cryptocurrency to his victims. The police received nine reports of fraud, with a total value of £160,000 ($215,000). Victims stated [...]

Multi-company owner caught in $9 million investment fraud scheme.

Homero Joshua Garza is one of the most hated personalities in the cryptocurrency market. Between May 2014 and January 2016, Garza defrauded victims in connection with the procurement of virtual currency. He did this through companies he founded and operated; GAW, GAW Miners, ZenMiner, and ZenCloud. The companies sold miners and access to miners, [...]

Former CEO of Mt. Gox Bitcoin Exchange accused of embezzlement.

Bitcoin embezzlement Bitcoin is a worldwide cryptocurrency and digital payment system. Bitcoin started in 2008 and can be used to pay others or send money anonymously. Bitcoin value is extremely volatile. However, the cryptocurrency is becoming more popular, and it has many users across the globe. The history In 2011, Mark Karpeles was the [...]

Bitcoin investment company owner jailed for $1.23 million mass fraud scheme.

Trendon Shavers operated Bitcoin Savings and Trust (BCS&T). Shavers operated his business from his home, offering bitcoin-related investments through the internet.  Using the alias “pirateat40”, Shavers raised over 764,000 bitcoins. At the time, these were worth more than $4.5 million for his company. Using the website Bitcoin Forum, Shavers solicited investment by promising investors [...]

Virtual mining investment scam defrauds investors of €380,000.

B.M. Jagadeesha lured people onto his website www.3gcoin.eu, saying that by investing in virtual mining, they would be able to claim a 180-fold return on investment in just two years. Victims of Jagadeesha’s scam were also informed that if they introduced a new investor, 20% of their referral’s investment would be paid to them [...]

Bar works founder arrested for running $36 million mass fraud scheme.

Renwich Haddow solicited investments for start-up companies he created and controlled, including Bitcoin Store, a purported online platform for purchasing, selling, and storing the digital currency known as “Bitcoin”, and Bar Works, a company that adapts former restaurants, bar premises, and other locations into co-working spaces. When soliciting these investments, Haddow made material misrepresentations [...]

Phishing scam—fake web links con dark web users out of $365,000 worth of bitcoins.

Michael Richo engaged in an online phishing scheme to steal bitcoins from individuals on the dark web. He visited dark web forums and posted fake links to online marketplaces. The links directed individuals to fake login pages that looked like genuine pages for the various online marketplaces. When individuals attempted to log into the [...]

Undercover DEA agent goes rogue in a fraud frenzy stealing over $700,000 in Bitcoin.

Carl Force (DEA)stealing money Carl Force was a special agent with the Drug Enforcement Administration (DEA). He was assigned to the Baltimore Silk Road Task Force between 2012 and 2014. This task force was a multi-agency group that investigated illegal activity on the Silk Road. Force was the lead undercover agent in communication with [...]