Daily fraud update: 10th April

Chris Lee

Binance denies embezzlement accusations

The cryptocurrency exchange firm Binance has announced that it will fight accusations of embezzlement.

Binance said that it would refute the fraud claims, which come from a Ukrainian national.

The story began unfolding earlier in the week, when a news website shared details of a Binance user who has been identified as BK.

BK claims that his account with Binance was frozen on an unfair basis, and that the exchange embezzled him out of a six-figure sum.

BK also claims that this happened as far back as November 2018.

But Binance has now hit back, and has claimed that the decision to freeze the accounts took place after it received information from the South Korean police.

According to Binance, this information implicated BK in a case involving stolen crypto related to a token project.

In a statement, Binance said that it was simply following policy.

“We have a standard procedure where once an account is flagged by a law enforcement agency, we will freeze an account and turn it over to them in accordance with the law and cooperate in investigations while also being careful to prevent any tip-offs,” it said.

There is also confusion over the veracity of the evidence in the case.

Crypto news outlets published screenshots from each party, and a number of contradictions and discrepancies have already been flagged.

OneCoin founder has judgement date delayed

 A man who was intimately involved in the world-famous alleged crypto scam known as OneCoin has had his court judgement date delayed.

Konstantin Ignatov was due to be sentenced on April 8th.

However, he will now face his sentencing on July 8th 2020. This came after the New York Southern District Court approved a request from the US government to delay the judgement.

The OneCoin case has been a long-standing source of headlines in the crypto fraud news world.

Ignatov was first taken into custody in March of last year at Los Angeles International Airport.

He admitted to many different charges late last year, and he could now be sent to prison for a maximum of 90 years.

His sister, Ruja Ignatova, has been described as the “Crypto Queen”. She remains on the run and has not been found.

At the time the charges were brought, various authorities in the United States passed comment on the complexity of the allegations.

John R. Tafur, who is the Special Agent in Charge at the Internal Revenue Service described the actions of Ignatov and his sister as “complete lies”.

“This is an old scam with a virtual twist. As alleged in court documents, the cryptocurrency OneCoin was established for the sole purpose of defrauding investors,” he said.

The pair “allegedly convinced victims to invest in OneCoin based on complete lies about the virtual currency.  IRS Criminal Investigation is committed to investigating cryptocurrency scams in an effort to protect the American public and bring cryptocurrency crooks to justice,” he added at the time.

Chris Lee

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