[ad_1] <br><div> <p class="acssf62a8">A former funding banker has been arrested and charged with wire fraud in reference to an alleged cryptocurrency fraud.</p> <p class="acssf62a8">Rashawn Russell, who was a Monetary Trade Regulatory Authority-registered dealer, has been charged with one depend of wire fraud associated to his alleged position within the scheme, america <a target="_blank" href="https://www.justice.gov/" rel="noopener noreferrer">Department of Justice</a> mentioned in a Tuesday (April 11) <a target="_blank" href="https://www.justice.gov/opa/pr/former-investment-banker-and-registered-broker-arrested-operating-cryptocurrency-investment" rel="noopener noreferrer">press release</a>.</p> <p class="acssf62a8">Russell allegedly promised traders he would use their funds for cryptocurrency investments; advised them that they'd obtain giant and, in some circumstances, assured returns; after which misappropriated a lot of their property, in line with the press launch.</p> <p class="acssf62a8">When traders requested to be repaid, Russell allegedly mentioned, falsely, that he had wired them the cash that that they had given him to be invested, the discharge mentioned.</p> <p class="acssf62a8">This report is the most recent in a collection of circumstances that allege that claims round cryptocurrency have been used to place a brand new spin on old style strategies of fraud.</p> <p class="acssf62a8">For instance, in November 2022, a New York man pleaded responsible to defrauding prospects in a case through which he advised them he would supply them with <a target="_blank" href="https://www.pymnts.com/cryptocurrency/2022/ny-man-admits-guilt-in-2m-crypto-mining-fraud/" rel="noopener noreferrer">crypto-mining computers</a> (“Miners”) and Miner internet hosting companies however as an alternative saved the cash and didn’t ship what he had promised.</p> <p class="acssf62a8">“Cryptocurrency mining has generated a lot media consideration and public pleasure up to now few years, however new types of cash and funding also can generate recent alternatives for old school fraud,” U.S. Legal professional <a target="_blank" href="https://www.justice.gov/usao-sdny/meet-us-attorney" rel="noopener noreferrer">Damian Williams</a> mentioned on the time.</p> <p class="acssf62a8">As PYMNTS reported in November 2022, the promise of “the following large factor in crypto” has been used to hawk bogus cash, make <a target="_blank" href="https://www.pymnts.com/news/security-and-risk/2022/calls-for-regulation-intensify-as-uk-crypto-scams-jump-45/" rel="noopener noreferrer">false claims</a> and swindle individuals out of their cash.</p> <p class="acssf62a8">In the UK, the Monetary Conduct Authority (FCA) acquired 45% extra stories of crypto property scamsduring the 12 months that ended June 2022 than it acquired through the earlier 12 months.</p> <p class="acssf62a8">Within the U.S., the Shopper Monetary Safety Bureau (CFPB) acquired greater than 8,300 complaints associated to <a target="_blank" href="https://www.pymnts.com/news/security-and-risk/2022/cfpb-frauds-and-scams-make-up-40-of-crypto-complaints/" rel="noopener noreferrer">crypto assets</a> between October 2018 and September 2022 and mentioned most of them had been acquired within the final two years.</p> <p class="acssf62a8">“Our evaluation of shopper complaints means that dangerous actors are leveraging crypto property to perpetrate fraud on the general public,” CFPB Director <a target="_blank" href="https://www.consumerfinance.gov/about-us/the-bureau/about-director/" rel="noopener noreferrer">Rohit Chopra</a> mentioned on the time.</p> </div> <br>[ad_2] <br><a href="https://www.pymnts.com/news/security-and-risk/2023/former-investment-banker-charged-in-connection-with-alleged-crypto-fraud/amp/">Source link </a>