Scammer Sentenced Over $1 Million LTC Scheme
Considering several investors and traders might be seeing losses today, that hasn’t prevented regulators to bring criminals to justice. In the news recently, a leading financial regulator has brought a crypto-related criminal to justice after he stole $1 million in Bitcoin and Litecoin.
On the 9th November, the US Commodity Futures Trading Commission published a press release which showed that it was sentencing an Arizona citizen to jail following affiliation with a Bitcoin and Litecoin related hoax.
Prior to his crypto involvement, Kim worked for Consolidating Tradings digital currency division in the late months of last year. After he joined the Chicago based companies branch he was informed that the had to halt all trading through his personal accounts to mitigate conflicts of interest.
Despite this, he failed to follow the bylaws and ended up in piles of debt on his account by reportedly issuing high-leverage trades on platforms such as Bitfinex and BitMex.
In order to protect himself, he began to transfer Litecoin out of the firms wallet and initially issued a 980 transaction of Litecoin (during that time this was valued at $48,000) to an unauthorised account.
Kim’s supervisor was made well aware of this suspicious transaction quickly and the now felon had made a bluff and claimed that he moved the funds to a personal digital wallet for reasons of safety. In addition to this, his Litecoin wallet was to be used as an intermediary holding space, a middleman of sorts.
But, of course, this was not true and Kim later transacted 55 Bitcoins (worth $433,000 at the time) to an unauthorised wallet once more and he played it off by bluffing again and then stole over 280 Bitcoins overall.
As reported by Ethereum World News:
“Eventually, after losing a good portion of the 284 BTC to the ‘crypto gods’ and stealing $545,000 from other clients, he was caught by his supervisors and employers, who later took him to court to bring Kim to justice.”
The Trading Commision, as well as the US District Court for Illinois, called for Kim to pay $1.1 million in restitution in fiat, not crypto to Consolidated and his customers.
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