Crypto Criminal Activities Recap

Do Kwon is caught in a battle between the U.S. and South Korea, while prosecutors are cracking down on crypto mixers.
April has seen a surge in crypto crime, starting with Changpeng Zhao’s four-month prison sentence for money laundering at Binance. Critics argue that the sentence is unjust, as prosecutors were seeking a three-year term. This contrasts with the 25-year jail sentence given to entrepreneur Sam Bankman-Fried.
In a surprising twist, Bankman-Fried has agreed to assist investors in FTX, the same company that led to his bankruptcy, in pursuing legal action against celebrities who endorsed the exchange. This move is ironic considering that Bankman-Fried would have been involved in hiring these celebrities initially.
The collapse of two cryptocurrencies resulting in a $40 billion market loss led to Do Kwon fleeing and subsequently being arrested in Montenegro for attempting to travel to Dubai with a fake passport. Kwon is now at the center of a legal battle between the U.S. and South Korea, both seeking his extradition to face criminal charges.
Legal proceedings against Kwon and Terraform Labs in New York have found them guilty of fraud, with the Securities and Exchange Commission seeking a massive $5.3 billion penalty.
Other notable cases include social media influencer Jabara Igbara, also known as “Jay Mazini,” who was sentenced to seven years in prison for a crypto fraud scheme targeting Muslims. The U.S. Department of Justice has also brought charges against the founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, for their involvement in money laundering activities.
Several hacks have also occurred, including a phishing attack on Ethereum resulting in the loss of over $180,000 for one trader. El Salvador’s state-controlled Bitcoin wallet, “Chivo,” experienced a second data breach, leaking source code and VPN credentials for ATMs. Additionally, scams targeting NFT artists and investors have caused significant financial losses.
High-profile social media accounts have also been targeted, with Spider-Man star Tom Holland’s account being hacked to promote fake tokens and NFTs. The hacker even uploaded a selfie to the actor’s account in a bizarre turn of events.