{"id":1488,"date":"2022-01-29T03:41:08","date_gmt":"2022-01-29T03:41:08","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=1488"},"modified":"2022-01-29T03:41:08","modified_gmt":"2022-01-29T03:41:08","slug":"cryptsy-ceo-indicted-for-defrauding-crypto-investors-destroying-evidence","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=1488","title":{"rendered":"Cryptsy CEO Indicted for Defrauding Crypto Investors, Destroying Evidence"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>The CEO of cryptocurrency exchange Cryptsy has been indicted in the U.S. The 17-count indictment charges the crypto exchange executive with \u201ctax evasion, wire fraud, money laundering, computer fraud, tampering with records, documents, and other objects, and destruction of records in a federal investigation,\u201d the DOJ said.<\/strong><\/p>\n<h2>Cryptsy\u2019s CEO Faces 17-Count Indictment<\/h2>\n<p>The U.S. Department of Justice (DOJ) announced Wednesday that Paul E. Vernon, the founder, operator, and chief executive officer (CEO) of Project Investors Inc., doing business as Cryptsy, has been indicted.<\/p>\n<p>A 17-count indictment was unsealed charging Vernon, 48, \u201cwith criminal violations for his involvement in a sophisticated theft scheme involving his cryptocurrency exchange,\u201d the announcement details, adding:<\/p>\n<p>The charges include tax evasion, wire fraud, money laundering, computer fraud, tampering with records, documents, and other objects, and destruction of records in a federal investigation.<\/p>\n<p>According to the indictment, Vernon solicited investors to store and trade cryptocurrencies on the Cryptsy platform.<\/p>\n<p>However, \u201cBetween May 2013 through May 2015, Vernon used his control over Cryptsy\u2019s accounts, known as wallets, to steal over one million dollars from Cryptsy\u2019s cryptocurrency wallets,\u201d the DOJ said.<\/p>\n<p>He then deposited the stolen funds into his personal crypto wallet, which he subsequently transferred to his personal bank account. The DOJ emphasized:<\/p>\n<p>At no time during this time period did Vernon disclose this theft of his customers\u2019 funds from his customers\u2019 Cryptsy wallets.<\/p>\n<p>In July 2014, Vernon informed Cryptsy employees that the exchange had been hacked by unidentified hackers and more than five million dollars\u2019 worth of bitcoin and other cryptocurrencies were stolen.<\/p>\n<p>Nonetheless, the platform continued to operate normally for six months, soliciting new customers, without disclosing to them that its security had been compromised, the justice department explained.<\/p>\n<p>In November 2015, Vernon abruptly moved to China and publicly told Cryptsy customers about the 2014 hack and loss of bitcoins and other cryptocurrencies.<\/p>\n<p>The Department of Justice further noted that after being notified that Cryptsy was in receivership in April 2016:<\/p>\n<p>Vernon hacked into Cryptsy servers from a remote location, stole Cryptsy\u2019s database containing customers\u2019 funds, and destroyed the customer database to conceal his illicit activity.<\/p>\n<p>Furthermore, the indictment alleges that Vernon attempted to evade his federal income tax obligations for 2014 and 2015.<\/p>\n<p><em><strong>What do you think about this case? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/cryptsy-ceo-indicted-defrauding-crypto-investors-destroying-evidence\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The CEO of cryptocurrency exchange Cryptsy has been indicted in the U.S. The 17-count indictment charges the crypto exchange executive with \u201ctax evasion, wire fraud, money laundering, computer fraud, tampering with records, documents, and other objects, and destruction of records in a federal investigation,\u201d the DOJ said. Cryptsy\u2019s CEO Faces 17-Count Indictment The U.S. Department [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1489,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-1488","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/1488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1488"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/1488\/revisions"}],"predecessor-version":[{"id":1490,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/1488\/revisions\/1490"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/1489"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}