The Top 10 high-profile crypto fraud cases

As regulatory scrutiny intensifies, crypto industry executives are increasingly finding themselves entangled in legal battles.

The recent case involving prominent crypto entrepreneur Sam Bankman-Fried (SBF) has further highlighted the challenges faced by individuals at the forefront of the digital asset revolution. Let’s take a deep dive into the top 10 high-profile crypto fraud cases so far.

Do Kwon and the collapse of Terra

In March 2023, Do Kwon, the co-founder of Terraform Labs, a Singapore-based blockchain platform, was arrested in Montenegro. Kwon, a South Korean national, was charged with fraud in the United States and indicted on eight charges, including securities fraud, wire fraud, commodities fraud, and conspiracy.

He had been a fugitive for several months, and South Korean authorities issued an arrest warrant for him in September 2022. Kwon was detained by Montenegro police at Podgorica airport while trying to board a flight to Dubai with another South Korean citizen.

During the encounter, police found forged passports of Costa Rica and Belgium. Kwon’s identity was confirmed through a fingerprint match. He spent Thursday night in police custody and was scheduled to appear in court on Friday evening.

The collapse of TerraUSD and Luna, two digital currencies issued by Terraform Labs, in May 2022, wiped out an estimated $40 billion from the crypto market. In June, he was sentenced to four months in prison by a Montenegrin court for using a forged passport during his travel attempt.

Avi Eisenberg

In December 2022, Avi Eisenberg, a crypto trader, was arrested in Puerto Rico under accusations of manipulating prices on the Mango Markets crypto exchange. He faced charges of commodities fraud, commodities market manipulation, and wire fraud related to his actions on the Mango Markets decentralized cryptocurrency exchange.

Eisenberg was accused of fraudulently obtaining approximately $110 million worth of cryptocurrency by manipulating the price of specific perpetual futures contracts on Mango Markets. Eisenberg’s trial was set to commence on December 8, 2023, but it was p

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Author: Ogwu Osaemezu Emmanuel

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