Crypto Exchange Owner Admits Laundering $1.8M in Online Auctions Fraud

[Danumsigwasan]

The owner of a now-defunct Romanian crypto exchange called CoinFlux has pled guilty to laundering roughly $1.8 million in a fraudulent scheme involving fake eBay ads and a car wash.

Vlad-Calin Nistor and 14 other defendants, including the owner of a car wash, have all entered guilty pleas at the Eastern District Court of Kentucky for their involvement in a racketeering conspiracy and cyber fraud scheme that defrauded millions of dollars from U.S. residents by selling goods that didn’t actually exist.

Beginning in 2013, the defendants began posting fake advertisements on sites such as eBay and Craigslist for items such as cars. Often using stolen identities, the group would pretend to be U.S. military personnel who needed to sell their goods before beginning a tour of duty. They even set up a fake call center to assuage any concerns victims had about the advertisements.

After the victim had sent payment, the group would begin the process of transferring the money out of the U.S. and back to Romania. Most of the time, this was done by converting illicit funds into crypto, usually bitcoin, and transferring it to Nistor and his crypto platform CoinFlux, where it would then be exchanged into the local currency.

Source of article: https://mycryptonewstoday.com/2020/06/crypto-exchange-owner-admits-laundering-1-8m-in-online-auctions-fraud/

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[disconnectme]

This is why you can't trust anyone in this space, even the so called SAFU being claimed by some exchanges should be frown at because we know people can act irrationally and one of the employee if not the onwer of an exchange can go rouge and steal people's money. As we are entering bull market more scammers will enter the space and people need to be careful

[ZincUnrated]

Not surprised... The rates at which there has been an upsurge in crime in the industry is completely breathtaking. People have adapted to using the blockchain technology for rather unsavoury things and crime rather than embracing its positively good advantages and this is becoming worrisome. It's beginning to give this beautiful innovation a bad name and it is completely disappointing to see.

[Mister.Satan]

Often using stolen identities, the group would pretend to be U.S. military personnel who needed to sell their goods before beginning a tour of duty. They even set up a fake call center to assuage any concerns victims had about the advertisements.

Most victims are just greedy pigs. I saw too many scams like this, "U.S. military joe wants to marry you and send you a gift, please pay some fee to receive it" to even care or give sympathy to the victims.  $1.8M laundering but how much for his commission of that amount? The exchange owner should know better because that is just a tiny amount to risk himself.

[Xintenson]

News like these is not good for the crypto world. They where going to celebrate the 3rd year anniversary of trading cyptos with no fees. Then how do you make money like that??? No fees but eventually they were probably going to steal your coins.

[Tipstar]

Might have got the idea of car wash from Breaking bad. It's actually is not a unique things and people around the world both filthy rich and growing businesses uses shady ways to launder their money. Offshore registrations and offshore bank accounts are a semi legit way to do that.
Some gets caught with it while many don't.

[Twinkledoe]

Might have got the idea of car wash from Breaking bad. It's actually is not a unique things and people around the world both filthy rich and growing businesses uses shady ways to launder their money. Offshore registrations and offshore bank accounts are a semi legit way to do that.
Some gets caught with it while many don't.

I remember Breaking Bad, they used the car wash business to clean the money. Maybe they really got the idea from that famous TV series huh! Anyway, bad entities will always find their way to deceive users and rip their money unknowingly. So if you are a user, you have to verify first the info given before sending any amount to them. It will not be in the form of crypto but they also have other means to launder money. It is just that this is another negative news that will put crypto in bad light.

[Saisher]

News like these is not good for the crypto world. They where going to celebrate the 3rd year anniversary of trading cyptos with no fees. Then how do you make money like that??? No fees but eventually they were probably going to steal your coins.

I have not heard of that exchange here maybe they are local exchanges but they do not charge fee for their transaction then they are a big suspect, I prefer trading in an exchange with high fees than no fee because a no fee exchange is up to something or they should have other business to sustain their exchange business.

[pakhitheboss]

News like these is not good for the crypto world. They where going to celebrate the 3rd year anniversary of trading cyptos with no fees. Then how do you make money like that??? No fees but eventually they were probably going to steal your coins.

I have not heard of that exchange here maybe they are local exchanges but they do not charge fee for their transaction then they are a big suspect, I prefer trading in an exchange with high fees than no fee because a no fee exchange is up to something or they should have other business to sustain their exchange business.

Me too, never heard about this exchange but OP did mention it is a local Romanian exchange. It seems a lot of exchanges are getting busted because either the staff commits a theft or the owners. It has become quite common now days.

That is why only use trusted cryptocurrency exchanges and never HODL your funds in an exchange wallet. Transfer only that amount which you need for either trading or converting to fiat. Rest should be kept in your personal wallet.

[lobo13hf]

News like these is not good for the crypto world. They where going to celebrate the 3rd year anniversary of trading cyptos with no fees. Then how do you make money like that??? No fees but eventually they were probably going to steal your coins.

Any exchange sites that offered no fees for the trade can be considered as a shady exchange site and it has a very high possibility to be the scam project. It looks very sad to see in another way exchange site is become a very crucial part of crypto ecosystem.

[elementaryOS]

So what will happen to user accounts and their balance on that exchange? Since in the news, any fund and balance in that exchange will be freeze under investigation so user's balance will meet the same fate? Damn, this is another good reason why never keep too much on exchange wallet.

[aemma]

First this type of news isn't good for the crypto space in general but come to think of it, is there any industry, systems and platforms where there aren't scammers? Am not trying to justify the act but just giving an instance. Also, I have not heard of such exchange before thus showing that, it is always better to associate with good exchanges who have reputations to uphold. Lastly, although cryptocurrencies has been used in different ways to carry out fraud yet, the crypto space will continue going higher because it has opened up a world of endless positive possibilities for all and sundry.