US Authorities Recover 8.2 Million for Victims of Crypto Fraud

US authorities have returned $8.2 million to victims of a “wrong number” crypto scam, with 33 individuals identified, including a resident from Mentor, Ohio. Victims were misled into investing over $4.9 million through messages from random numbers, leading to a federal investigation that froze the funds for restitution. The FBI continues to track additional potential victims and their losses.

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Political Scandal Erupts in Argentina Over Cryptocurrency and Impeachment Calls

President Milei faces potential impeachment amid a scandal involving the Libra token, which has been labeled a possible rug pull. As the token’s value plummeted, accusations of fraud and ethics violations emerged, prompting investigations into Milei’s conduct and connections to the project. Meanwhile, adviser Davis claims to have $100 million to revive the initiative but expresses uncertainty about how to proceed.

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Alleged Hacker Faces Plea Deal and Forfeiture Over Fake SEC Post

Eric Council Jr. faces a proposed plea deal that could require him to forfeit $50,000 linked to a fake post on the SEC’s X account, which falsely claimed approval of spot Bitcoin ETFs. Arrested in October 2024, he is charged with conspiracy to commit aggravated identity theft and access device fraud, potentially facing a minimum of two years in prison. The SEC removed the misleading post shortly after it caused a significant surge in Bitcoin’s price.

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CFTC Subpoenas Coinbase for Customer Information in Polymarket Investigation

The CFTC has reportedly subpoenaed Coinbase for customer information as part of its investigation into Polymarket, a decentralized prediction market platform. This follows a raid on Polymarket’s CEO Shayne Coplan’s home amid allegations of violating a settlement with the CFTC. Coplan claims the actions are politically motivated, urging a more pro-business approach from incumbents.

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Alleged SEC Hacker Granted Holiday Travel Permission by Judge

Eric Council Jr., accused of hacking the SEC’s X account in January, has been granted permission to travel to North Carolina for the holidays. The judge mandated that he provide his itinerary two business days prior to his trip. Council, who pleaded not guilty to charges including conspiracy to commit aggravated identity theft, allegedly caused a market stir by falsely claiming Bitcoin ETFs had been approved. His trial date remains unconfirmed, with a plea agreement deadline set for January 17.

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Polybius project founders arrested for orchestrating cryptocurrency Ponzi scheme

The Polybius project, initiated by the Estonian Polybius Foundation, aimed to create a fully digital European bank using blockchain technology. However, its founders, Sergei Potapenko and Ivan Turõgin, were arrested in November 2022 for orchestrating a $575 million Ponzi scheme, leading to the project’s website being taken down and the FBI seeking information from victims. They are currently awaiting trial, scheduled for March 17, 2025.

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Silk Road Founder Ross Ulbricht Hopes for Commutation from Trump

Silk Road founder Ross Ulbricht, serving a life sentence, expressed hope that President-elect Donald Trump will honor his campaign promise to commute his sentence. Despite previous pleas during Trump’s first term, skepticism remains among crypto advocates regarding his commitment to this pledge. Ulbricht was convicted in 2015 for money laundering and conspiracy related to the Silk Road marketplace, which facilitated illegal sales.

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US Government Moves to Seize Stolen Assets from North Korean Hackers

The U.S. government filed legal complaints on October 4, 2024, to seize over $2.67 million in digital assets stolen by North Korean hackers, specifically the Lazarus Group. This includes approximately $1.7 million in Tether from the 2022 Deribit hack and about $970,000 in Avalanche-bridged Bitcoin from the 2023 Stake.com breach, which resulted in significant losses for both platforms. The FBI has also issued warnings regarding the group’s social engineering scams targeting unsuspecting users.

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