New Yorker charged with crypto fraud

According to officials, the man was arrested on charges of wire-fraud involving a cryptocurrency scheme that left investors $4.5 million short. The case was reported by the U.S. Attorney’s Office of the Northern District of California.

Based on the official statement which contains the complaint, Kim introduced himself as a crypto trader to friends and asked for funding, promising to drive a return on investment. Once in possession in the plaintiffs' funds, Kim would transfer the money across to online gambling websites.

In one case, Kim told a victim that he had managed to secure an estimated $300,000 – $400,000 in net profit from running a similar operation in the past. According to investigators, Kim quickly cashed out the money that victims forwarded to him and sent them to a sportsbook and casino website outside of the United States.

If Kim is found guilty of running the scheme, he might face up to 20 years in prison. His gambling addiction, if proven, would be one way to lessen the potential sentence.

While the case is disturbing and raises a few red flags, it also indicates how KYC and AML practices in crypto casinos should be on par with the traditional industry.

Therefore, players are advised to only play at trusted crypto casinos such as BitStarz and, or one of FunFair's licensed brands, including CasinoFair, to help the industry establish higher standards across the board.

There have been many documented cases of fraud in the crypto industry and that's why sticking to the trusted and established communities is always best.

Looking for your next crypto casino? Check out: Bitcasino or FortuneJack.

Written by Tudor

Works as a developer and helps keeps the digital cogs turning. Leave them alone, they're busy.

Similar News

Gemini sets up shop in Ireland


Bankrupt crypto lending firm Celsius has picked Fahrenheit’s proposal to manage a new entity to be owned by its creditors,...

Links between China chemical firms and crypto revealed


China-based chemical firms have been suspected of supplying fentanyl to drug cartels overseas in exchange for cryptocurrencies. Blockchain research firms...

Evil Geniuses partners with Thunderpick crypto casino


Esports organization Evil Geniuses has joined with the cryptocurrency betting platform Thunderpick. The partnership will see Thunderpick become Evil Geniuses's...