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Fraud

Crypto Hedge Fund Founder Admits to $90M Fraud

  • Stefan Qin, the founder of Virgil Sigma Fund LP and VQR Multistrategy Fund LP, used a part of the stolen funds to support his lavish lifestyle.
  • Qin stole almost all the funds from Virgil Sigma, and then tried to dip into VQR Fund to pay back investors in Sigma.
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  • Stefan Qin, the founder of Virgil Sigma Fund LP and VQR Multistrategy Fund LP, used a part of the stolen funds to support his lavish lifestyle.
  • Qin stole almost all the funds from Virgil Sigma, and then tried to dip into VQR Fund to pay back investors in Sigma.
United States Securities and Exchange Commission building. SEC

SEC Obtains Emergency Asset Freeze Against Virgil Capital, Charges Founder with Fraud

  • The SEC has ordered an asset freeze against crypto fund Virgil Capital.
  • Virgil Capital and its founder Stefan Qin are accused of misappropriating investor funds.
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Hacker Returns Stolen Funds to Cover Protocol

  • The price of the COVER token plummeted from around $850 to less than $50 in a matter of hours after the hack.
  • Hours after the event, Grap.Finance claimed responsibility for the hack, and returned the funds with a note saying: "Next time, take care of your own shit".
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Bitgrail’s Founder Responsible for Hacks, Italian Police Allege

  • Italy's Postal and Communications Police has accused Francesco Firano, the founder of the exchange, of fraud related to the hacks on the exchange in 2018.
  • During its investigation, the police found Firano had transferred 230 BTC to his personal account three days before reporting the hacks.

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Crypto Exchange Exmo Loses 5% of Assets in Hack

  • London exchange Exmo lost 5% of its total assets in an apparent hack.
  • All withdrawals were suspended and an investigation is ongoing.
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Founder of Centra Tech Sentenced to Prison for ICO Scam

  • Robert Farkas was sentenced to one year in prison for conducting an illegal ICO.
  • Farkas and other Centra Tech founders defrauded investors out of $25 million in 2017.
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Over $8 Million in NXM Stolen From Founder of Nexus Mutual

  • An unknown attacker stole 370,000 NXM from Hugh Karp, the founder of Nexus Mutual.
  • The company said this was targeted attack and no user funds were affected.
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Compounder Finance Developers Allegedly Involved in $10.8 Million Rug Pull Scheme

  • The project’s funds were withdrawn via a hidden smart contract call function, which was set to activate at a fixed threshold.
  • A Telegram group of investors has started investigating the anonymous developers, hoping to reveal their identities and regain their investment.
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Chinese Authorities Obtain Crypto Worth $4B From PlusToken

  • The Chinese court has ruled that all proceeds from the seized crypto will go to the national treasury, though it remains unknown how the assets will be processed.
  • A total of 15 people connected to the scheme have been convicted so far, with sentences ranging from 2 to 11 years.
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Liquid Suffers Security Breach, User Data Possibly Exposed

  • The exchange has said that its customers' funds remain safe, and that the attacker was not able to access its MPC-based and cold storage crypto wallets.
  • Liquid customers were warned to be on the lookout for phishing attempts, as the intruder had access to data such as users' emails, names and addresses.
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Origin Protocol’s Stablecoin Exploited For $7M In Latest DeFi Hack

  • The latest attack once again used a flash loan to exploit a vulnerability in a DeFi protocol, to artificially inflate the supply of OUSD.
  • Deposits to the OUSD vault have already been disabled, and the firm is expected to release a full post-mortem of the incident in the following days.
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Chainalysis Launches Service To Assist The Management, Sales Of Seized Crypto Assets

  • Chainalysis will enable law enforcement-seized cryptocurrency to legally flow back into circulation.
  • The blockchain analytics company will collaborate with experts in management of seized cryptocurrency, Asset Reality.
Sign of the Department of Justice (DOJ) in Washington, DC on September 10, 2016. Mark Van Scyoc/Shutterstock

Chainalysis Helps DOJ Seize More Than $1B In BTC Stolen From Silk Road

  • Agents from IRS-CI used Chainalysis tools and managed to identify Individual X, from whom the funds were seized.
  • The civil complaint is a mere standard procedure aiming to prove that the seized assets are subject to forfeiture.
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Binance Recovers 99.9% of Crypto Stolen In DeFi Exit Scam

  • The Wine Swap exit scam took place on 13 October on the Binance Smart Chain, and was responsible for the loss of $345,000 worth of crypto.
  • Using on-chain analysis, Binance was able to identify the culprit, and eventually recover $344,000 of the lost funds, which are now being returned to their rightful owners.