Friday, September 13, 2024

Fake Crypto Recovery Service Operator Arrested and Charged

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The Homeland Security Investigations New York has charged Michael Lauchlan for running a fraudulent cryptocurrency recovery service, Coin Dispute Network (CDN), that scammed customers out of their ethereum. Lauchlan convinced clients he could recover lost cryptocurrencies but pocketed the fees and took additional ethereum. He was arrested in Las Vegas.

Fraudulent Cryptocurrency Recovery Business Operator Charged

Homeland Security Investigations (HSI), a premier federal law enforcement agency within the U.S. Department of Homeland Security (DHS), announced Monday that its New York task force has charged Michael Lauchlan for operating a fraudulent cryptocurrency recovery business, Coin Dispute Network (CDN), which scammed customers out of their ethereum (ETH) under false pretenses.

According to HSI, Lauchlan’s scheme involved convincing clients he could recover lost cryptocurrencies for a fee, but instead, he pocketed the fees and extracted more ethereum from at least three victims. He used fake blockchain tracing reports to support his fraudulent claims. HSI New York Special Agent in Charge Ivan J. Arvelo commented:

Michael Lauchlan allegedly exploited his customers’ lack of experience with the cryptocurrency industry and in turn fleeced them out of thousands of dollars in sham services and stolen assets.

“Today, his alleged false promises and shady business dealings have caught up with him,” the HSI New York special agent added.

Between July 2022 and June 2023, CDN, under the guise of offering blockchain analysis and recovery services, duped customers into paying upfront fees. Lauchlan, using the alias “Max Handler,” claimed to be the vice president and chief recovery officer of CDN. The website was filled with fake testimonials and news articles to build credibility. Despite numerous customers paying fees, none successfully recovered their cryptocurrency.

The investigation identified approximately $14,000 in cryptocurrency transferred to Coinex. Lauchlan’s arrest last month at Harry Reid International Airport in Las Vegas was made possible by the coordinated efforts of HSI’s Las Vegas Field Office and U.S. Customs and Border Protection.

Source:- Bitcoin.comNews

Marika Aros
Marika Aros
I’m Marika Aros, a dedicated freelance marketing specialist With 5 years of hands-on experience in the dynamic realm of digital marketing, I specialize in crafting compelling press releases, designing eye-catching banner ads, developing engaging sponsored posts, writing detailed review articles, conducting insightful interviews, and orchestrating successful events.

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