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Fifteen people claim fake BTC fraud through auctions

June 12, 2020

According to the U.S. Department of Justice (DoJ) 15 people pleaded guilty to participating in an international union Who conducted fraudulent auctions to defraud Bitcoin (BTC) holders?

Since at least December 2013, The union used non-existent product lists on auction and sales websites to defraud victims and the group laundered funds via the Romanian cryptocurrency exchange Coinflux in the past few years.

According to the Department of Justice report, four of the complaints filed by Romanian citizens in the last 24 days have been before federal judge Matthew A. Stinnett, two of them in the past 24 hours.

The international network for cyber fraud

Fifteen people claim fake BTC fraud through auctionsFifteen people claim fake BTC fraud through auctions

On June 11, Bogdan-Stefan Popescu (30) and Liviu-Sorin Nedelcu (34) pleaded guilty to charges of organized crime and for violation of the RICO law (Civil extortion, interference and corrupt organizations law in Spanish)

The lawsuit states that Nedelcu worked with other scammers to place ads on auction websites on goods that did not exist, more often vehicles. “After receiving the payment, Nedelcu and his accomplices took one sophisticated money laundering system convert the victim’s payment into Bitcoin, “said the Department of Justice.

The DoJ claims that Popescu identified “An operation in which he admitted to fraudulently receiving BTC,” in addition to internet fraud Offer money laundering services and use distribution tools to defraud victims in the United States.

Coinflux crypto exchange for money laundering

The funds generated by the union have been washed through exchange Romanian coinflux.

Vlad-Călin Nistor, 33, founder and operator of Coinflux, He pleaded guilty on May 19 to be a side effect of charges that violate the RICO law. Nistor converted the crypto assets of the criminals to local fiat currency on behalf of the Romanian group members. “

The Justice Department says so Nistor washed the funds even though he “knew Bitcoin was the product of illegal activities”. with declaration documents that indicate this Nistor exchanged over $ 1.8 million for Bitcoin for Popescu.

Beniamin-Filip Ologeanu, 30, also pleaded guilty on May 19. after working with the union to post fraudulent ads on auction and sales websites. Olegeanu also bought the profits of his accomplices in the form of prepaid debit cards to be laundered in the United States.

“By using digital currencies and cross-border organizational strategies, this criminal organization can I thought you were out of the police’s reach. ” said Deputy Director of the United States Secret Service, Michael D’Ambrosio.

“However, as this successful investigation clearly shows, continuing international cooperation can effectively hold cybercriminals accountable for their actions, regardless of where they are.”

Coinflux founder arrested in 2018

The Romanian media reported on this in December 2018 Nistor had been arrested in Romania at the behest of US prosecutors. United States for alleged money laundering and fraudulent activities. Less than a month later, it was announced that Nistor would be extradited to the United States.