The latest on fraud cases: 11th September

Chris Lee

Here’s the latest on the fraud cases reported in the cryptocurrencies and foreign exchange trading world as of 11th September.

Goldman Sachs forex executive accused of fraud

A man who headed up a forex trading team in India has been accused of carrying out fraud against his employer.

Ashwani Jhunjhunwala, who served as a vice president at the globally recognised financial services firm Goldman Sachs, is alleged to have turned to the fraud process after he lost a significant amount of cash playing online poker.

According to reports published in the Times of India, police in the local area were shocked when they investigated and found that Jhunjhunwala had allegedly been able to take the equivalent of over $5m out of the company’s bank account.

It is believed that Jhunjhunwala was in debt to the tune of 47 lakh rupees, which is equal to around $65,000 or £53,000.

This is understood to have come from a gambling addiction.

While he had taken out loans of his own, he was struggling to meet the repayments.

He apparently received information from a former colleague about a way to take cash from company accounts.

He allegedly went ahead with the process – but was then found out when another employee spotted that large transactions had been placed.

He is also alleged to have manipulated junior employees in an attempt to cover his tracks.

He is accused of asking one employee in his forex department to go and provide refreshments under the pretence of looking over the employee’s work – but then allegedly set up a cash transaction to the tune of several million dollars.

However, he was caught on CCTV.

Evidence of “pump and dump” crypto fraud published

A team of crypto researchers has revealed evidence which they suggest shows a “pump and dump” scheme in action for a major crypto token.

The researchers from AnChain.Ai appeared to show that the Chainlink token, which belongs to the Japanese message service firm LINE, had suffered the scam.

A pump and dump scam involves the scammers arranging for the value of a crypto asset they own to rise quickly, perhaps through misinformation.

The scammers then sell their assets at an optimal point, leaving those who were not in on the scam with worthless items.

According to a blog post published by the researchers, the price movements of the token over the period in question appear to indicate sudden rises and falls which are indicative of the scam.

It also identified some other key hallmarks of the scam type, including the use of a group of addresses as well as so-called “multiple jump addresses”, which appears to help cover tracks.

“Cryptocurrencies tend to be exceptionally vulnerable to this form of attack, as coins are often heavily concentrated in the hands of a comparatively small number of individuals, whose market activities can dramatically impact the coin price”, the researchers are quoted as saying.


Chris Lee

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