Four cryptocurrency platforms accused of fraud in the US

The U.S. Department of Justice has issued a statement accusing the creators of the Baller Ape Club NFT, EmpiresX, Circle Society, and Titanium Blockchain Infrastructure Services cryptocurrency projects of fraud, namely, stealing investors' funds.

The co-founders of the Baller Ape Club project sold non-fungible tokens in the form of different monkeys (which looks like a copy of BAYC), and after selling the first batch of NFTs, they closed the project, deleted the website, and disappeared with $ 2.6 million in investor funds. The fraudsters withdrew liquidity from the pools (rug pull), converted tokens into other crypto assets, and moved them to «cover their tracks.» The author of the idea and the brain behind the project, Le Anh Tuan, faces up to 40 years in prison.

EmpiresX co-founders Emerson Pires, Flavio Gonçalves, and David Joshua worked on the Ponzi scheme. They sold unregistered securities, guaranteed investors a high return, and paid the funds received from new investors to previous investors. The fraudsters face 25 to 45 years in prison.

Michael Stollery, founder of the cryptocurrency investment platform Titanium Blockchain Infrastructure Services (TBIS), is suspected of illegally selling TBIS crypto assets (he violated securities laws), publishing fake reviews and posting fake information about cooperation with well-known companies. Stollery faces up to 20 years in prison.

David Saffron, the owner of the Circle Society cryptocurrency investment platform, cheated investors out of about $ 12 million, guaranteeing a 500% return on their investment. The fraudster can get up to 115 years in prison.

To combat cryptocurrency fraud, the SEC plans to develop uniform regulatory rules for all digital assets. They are necessary to prevent criminals from exploiting existing gaps in the law and committing fraudulent actions and similar manipulations.