Five accused in alleged Crypto Ponzi scheme
Operators of an alleged international digital currency “ponzi scheme” and a lawyer are charged with money laundering and fraud, the United States Attorney’s Office for the Southern District of New York said in a statement. Press release.
The individuals have been charged with their participation in a group “involved in the fraud of individuals through investments in AirBit Club, an alleged cryptocurrency trading and mining company,” the statement said. Victims were given access to a portal to show the supposed returns when they invested, but the portrayals were apparently not true.
“No mining or trading of Bitcoin on behalf of the victims actually took place,” the office said in the statement.
In other news, The KuCoin group warned users of a website that allegedly operates the KuCoin brand to ask users to move digital assets to certain addresses through “fake incentive activity,” according to one ad.
The organization said users should be “very careful to avoid this type of scam.” In the announcement, the organization listed the website “fraudulent” and said anyone who sent digital assets to the address disclosed by the website should contact authorities.
Meanwhile, Russian financial institution Expobank has reportedly made the country’s first digital currency-backed loan, Co-telegraph reported.
The bank reportedly extended the credit by providing a bank loan funded by Waves tokens. The debt was reportedly granted to a businessman who does not intend to market the digital tokens. The founder and CEO of Waves posted on social media that the loan used digital currency as collateral.
European Union air carriers must pay travelers for delays of at least three hours attributable to the carrier, but the service is seeking compensation from travelers for those who are able to receive it, according to the report. It then compensates all travelers faced with delays of at least one hour. The service has allowed travelers to be paid in fiat currency since its launch in June last year.