Daily fraud update: 16th June

Forex Fraud Analyst Team
Coinflux website homepage on a phone screen

Coinflux founder pleads guilty in fraud claims

The founder of a bitcoin exchange has pleaded guilty over claims that he participated in an online auction fraud.

According to press reports, Vlad-Călin Nistor, who set up the now-defunct exchange Coinflux, was involved in a conspiracy to defraud customers of a supposed online auction.

It is alleged that Nistor and 14 other defendants, all of whom are from Romania, made millions of dollars in total.

Allegedly, those involved released adverts on auction websites such as eBay as well as listings websites such as Craiglist.

The adverts promoted items to buy – however, the adverts were allegedly fake, and the items for sale apparently did not exist.

The accused then apparently went on to trick people in the US to send over cash to purchase the items.

In one case, an alleged victim was told that they needed to send the cash so that a member of military personnel could receive the goods before being sent away.

There is also an alleged element of identity theft to the case.

The corporate identities of legitimate companies, such as trademarks, were allegedly stolen in order to create invoices to trick victims.

The defendants also supposedly set up accounts in order to post the adverts and reach out to potential victims – and in some cases, they used the details of real people.

In a further twist, the defendants are also accused of carrying out money laundering.

They are alleged to have turned the cash they received into crypto before moving it on to other locations.

The guilty pleas came in front of US Magistrate Judge Matthew A. Stinnett, of the US District Court for the Eastern District of Kentucky.

In a statement, prosecutors in the US shared more insights on the case.

“Today’s modern cybercriminals rely on increasingly sophisticated techniques to defraud victims, often masquerading as legitimate businesses,” said Brian A. Benczkowski, an Assistant Attorney General at the Justice Department’s Criminal Division.

“These guilty pleas demonstrate that the United States will hold accountable foreign and domestic criminal enterprises and their enablers, including crooked bitcoin exchanges that swindle the American public,” he added.

US Attorney Robert M. Duncan Jr., who works in the Eastern District of Kentucky, added that “extraordinary cooperation” had helped bring the 15 to justice.

“The guilty pleas announced today are a direct result of the extraordinary cooperation and partnership among law enforcement agencies at the local, state, federal, and international levels,” he said.

He added: “These partnerships helped dismantle a sophisticated organized crime group who preyed upon victims across the United States.

“I commend the exceptional work conducted by our law enforcement partners and trial team members who worked diligently to hold these defendants accountable.”

There were also strong words on offer from Kentucky State Police Commissioner Rodney Brewer.

“These are scam artists who hide behind a wall of technology which allows them to prey upon innocent victims throughout the United States,” he said.

Forex Fraud Analyst Team

Latest news

Forex vs Crypto: What’s Better For Beginner Traders?
The crypto and forex markets are two of the world’s most popular among investors and traders. Read more
Three Great Technical Analysis Tools for Forex Trading
You don’t have to be very technical minded to make use of technical analysis in your forex trading. Read more

Safest Forex Brokers 2024

Broker Info Best In Customer Satisfaction Score
#1 73% of retail CFD accounts lose money. Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#2 Blackbull LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#3 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
#4 plus500 logo 80 april 2024* 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker
#5 Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
#6 Forex Broker eToro Logo76% of CFD traders lose money Founded: 2007 Global CFD & FX Broker
Number One Broker
#7 XM LogoYour capital is at risk Founded: 2009, 2015 and 2017 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
#8 FxPro LogoYour capital is at risk Founded: 2006 CFD and Cryptocurrency Broker
Number One Broker
CFD and Cryptocurrency Visit broker

    Forex Fraud Certified Brokers

    BlackBull Logo Small
    XM Logo
    AvaTrade logo
    FxPro logo
    eToro Logo
    FXTM Logo
    plus500 logo 80 april 2024
    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.