Cryptocurrency fraud: 4 crypto CEOs sent to prison for having stolen from investors

Sam Bankman-Fried

It is perhaps the most famous crypto company PDG on the list after having taken over FTX. At the height of the company’s success, FTX had gone so far as to embezzle celebrities such as Tom Brady and Steph Curry, had acquired the naming rights to a stadium, and had even made donations to political parties.

But in the end, the FTX empire was dissolved, turning $30 billion into nothing and leaving more than a million investors on the hook! FTX’s founder, Sam Bankman-Fried, was arrested on December 12, 2022 in the Bahamas and is awaiting extradition to the United States where he must answer to eight charges, including wire fraud and conspiracy to embezzle client funds. These charges could result in up to 115 years of imprisonment.

Joe Biden received $5.2 million in campaign donations from Sam Bankman-Fried.

Every single penny must be returned.

– Lance Gooden (@Lancegooden) December 15, 2022

Faruk Fatih Özer

In 2021, the cryptomonnaies analysis company Chainalysis has established a link between Özer and several other rug pulls in an amount of 2.8 billion dollars. It has succeeded in doing so through the cryptocurrency exchange Thodex until the exchange is unable to process the clients’ cash withdrawals.

He was also the subject of a red notice issued by Interpol and was arrested in the Albanian city of Vlorë. Having been extradited to Turkey, Özer risks a prison sentence of 40,564 years, although he should spend much less time in prison!

Konstantin Ignatov

After having taken the life of his mother-in-law Ruja Ignatova, Konstantin is returned with an arrest warrant in the wake of the OneCoin Ponzi scheme. Accused of money laundering and fraud, he faces up to 90 years in prison.

Her sister Ignatova, on the contrary, has escaped capture, but is on the list of the dix fugitifs les plus recherchés par le FBIwhile Europol has included it on its list of the most wanted persons. OneCoin has escrowed 4 billion dollars from investors and a reward of 100,000 dollars is offered by the FBI for the location of Ignatova.

Satish Kumbhani

BitConnect was once again one of the most promising crypto projects, with a market cap of 3.4 billion dollars. La mauvaise nouvelle, c’est qu’il s’agissait d’une chaîne de Ponzi classique orchestrée par Satish Kumbhani, qui a été inculpé par un grand jury fédéral à San Diego en février 2022.

Malheureusement, Kumbhani a fui l’Inde à une adresse inconnue et la SEC ne pouvait pas dire ” quand ses efforts pour le localiser seront couronnés de succès, si tant est qu’ils le soient. “Several managers and promoters of the company are declared, but the investors have all the same lost their capital.

Do Kwon

Yet another leading figure in the crypto industry, Do Kwon had made Terra Ecosystem a $60 billion dollar empire. However, a setback in the company’s finances has caused the empire to collapse, with investors losing more than $42 billion.

Do Kwon se cacherait en Serbie 🇷🇸

C’est ce que pense les autorités sud-coréennes 🇰🇷 qui ont demandé la coopération du gouvernement serbe afin de ramener Do Kwon pour qu’il réponde des accusations en Corée du Sud. pic.twitter.com/QoFsKRRT8r

– Goku 🔥 (@Crypto__Goku). December 12, 2022

Since the May crash, Do Kwon has been wanted by South Korean prosecutors who have issued an arrest warrant for the fugitive. Interpol has even issued a red notice for Kwon, who is believed to be in Serbia, but has not yet been arrested.