Two men from Canada have been hit by claims that the they participated in a Bitcoin fraud incident.
According to the US Department of Justice, 23-year-old Karanjit Singh Khatkar and 24-year-old Jagroop Singh Khatkar have both received charges of wire fraud, money laundering and more.
The pair are both from Surrey in the Canadian province of British Columbia.
The charges, which were issued by the United States Attorney’s Office in the District of Oregon, focuses on their activities on Twitter.
It is believed that they operated a Twitter page which imitated the customer helpdesk of a legitimate crypto exchange, HitBTC.
However, the account allegedly operated by the two defendants was not the real thing. When a person from the US state of Oregon contacted what was allegedly their account, they asked her to send personal details which allowed them to enter her accounts on various websites, including her email and her actual HitBTC account.
It is believed that in total the defendants were able to steal 23.2 Bitcoins in this particular case.
At present, this is understood to be equal in value to $233,220 US dollars – meaning that it is a significant amount of cash.
Their alleged fraudulent behaviour was carried out separately. Karanjit Khatkar is understood to have carried out the alleged crime in this particular case but split the proceeds with Jagroop Singh Khatkar.
According to the statement, Karanjit Khatkar was arrested on July 18th of this year when he landed at an airport in Las Vegas.
Jagroop Singh Khatkar has not been taken into custody. It is understood by the authorities that he is in Canada.
They have both been charged with several counts of criminal activity. They have a count each of conspiracy to commit wire fraud and money laundering. Each one then has five further counts of wire fraud, and three of aggravated identity theft. Several counts of money laundering also apply to each.
In a statement, the Department of Justice outlined how the pair carried out their alleged crypto fraud.
“According to the indictment, beginning in October 2017 and continuing until August 2018, the defendants used a Twitter account with the name @HitBTCAssist to trick victims into thinking they were communicating with a customer service representative from HitBTC, a Hong Kong-based online platform used to exchange virtual currency”, it explained.
“HitBTC provides its customers with web-based ‘wallets’ to store virtual currency and make transactions.”
“Using the fraudulent Twitter account, the defendants responded to the Oregon victim’s questions about withdrawing virtual currency from her HitBTC account.
It also touched on the use of a service called Kraken, which is another cryptocurrency exchange.
“The defendants convinced the victim to send information they could use to log on and take over her email, HitBTC and Kraken accounts. Kraken is a U.S.-based online platform that offers services similar to HitBTC”, it said.
The case continues, and the Department of Justice emphasised that no party had yet been found guilty.
- What Does Binance Being Kicked Out of Belgium Mean for Crypto Prices?
- Crypto Traders and Coin Prices Face New Challenge as Binance Gives up its FCA Licence
- Interpol Declares Investment Scams “Serious and Imminent Threat”
- Annual UK Fraud Audit Reveals Scam Hot-Spots
- Former Schwab, Wells Fargo, and Morgan Stanley Advisor is Sentenced to Seven Years
- FX Fraudster On The Run After £70m Ponzi Scheme Collapses
What Does Binance Being Kicked Out of Belgium Mean for Crypto Prices?
Safest Forex Brokers 2023
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||72% of retail CFD accounts lose money. Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#2||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
|#3||Your capital is at risk Founded: 2006||Globally regulated broker||
BEST CUSTOMER SUPPORT Visit broker
|#4||82% 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||
Best Trading App Visit broker
|#5||Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010||Global Forex Broker|
|#6||76% of CFD traders lose money Founded: 2007||Global CFD & FX Broker||
ALL-INCLUSIVE TRADING PLATFORM Visit broker
|#7||Your capital is at risk Founded: 2009, 2015 and 2017||Global Forex Broker|
|#8||Your capital is at risk Founded: 2006||CFD and Cryptocurrency Broker||
CFD and Cryptocurrency Visit broker
Forex Fraud Certified Brokers
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox