cryptoscandal

The Cambodian payment system Huione Pay, known as the largest money laundering network in the region, announced a temporary suspension of operations until January 5, 2026. The reason was a mass "bank run" – thousands of clients stormed the offices in Phnom Penh, trying to withdraw funds. The company offered clients two options: invest in "high-yield products" with a return after 18 months plus interest, or payments in installments after 6 months.

🧨 When the exchange fell, trust fell too

November 2022 brought the biggest shock to the crypto world since the days of Mt. Gox. The cryptocurrency exchange FTX, once a model of transparency and a 'safe path for Europe', collapsed within a few days. Customers across the continent discovered that their funds had vanished – along with the illusion that 'a big exchange = certainty'.

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🏦 Why did FTX like Europe?

The European Union was a strategic target for FTX:

Regulatory reputation: operating in the EU was meant to lend credibility to the brand

South Korean prosecutors have charged a Seoul police superintendent and a senior officer with accepting bribes from operators of illegal cryptocurrency exchanges. These exchanges allegedly laundered $186 million (249.6 billion KRW) tied to large-scale voice-phishing schemes.

Officers Accused of Taking Cash and Luxury Goods in Exchange for Insider Help
According to prosecutors, the police station chief, identified as “F,” received $59,000 (79 million KRW) between July 2022 and February 2024 from those running an unlicensed crypto exchange.
Another officer, identified as “G,” allegedly accepted $7,500 (10 million KRW) in cash and luxury items over the same period.
Both officers were dismissed from their positions immediately after their arrest.
Investigators say the two officers provided a range of unlawful assistance, including:
confidential investigative informationreferrals to attorneysrequests to unfreeze crime-linked accountsconnections to additional law-enforcement personnel
This support allegedly helped the operators conceal the activities of an extensive illicit crypto-exchange network.

How the Illegal Crypto-Exchange Network Operated
Prosecutors report that one of the operators, working with a CEO identified as “B,” built a coordinated system of cash-for-crypto exchanges disguised as “gift-voucher shops.”

These shops, active from January to October 2024 in busy Seoul districts such as Yeoksam-dong, served as fronts for physical cash-to-USDT conversions.
According to the investigation, the group:
converted proceeds from voice-phishing scams into USDT stablecoins,maintained a façade of legitimacy using signs warning customers about phishing scams,recruited individuals to run operations and handle cash transfers.
The group allegedly generated up to $8.4 million (11.2 billion KRW) in criminal profit.

Part of the funds remains unaccounted for or was spent, prosecutors say.

Network Uncovered During Investigation Into a Separate Phishing Case
The scheme came to light when prosecutors received a voice-phishing case from police, and follow-up investigations revealed contradictions with an earlier decision not to indict CEO “B.”

New evidence suggested involvement in a far larger laundering operation than previously believed.
Authorities have already frozen $1.1 million (1.5 billion KRW) in illegal assets, including:
$600,000 in USDT,other funds suspected to be crime-related.
The investigation remains ongoing.

A Global Pattern of Law-Enforcement Corruption Tied to Crypto
The South Korean case mirrors a broader international trend of corruption scandals involving cryptocurrencies and law-enforcement officials.

Examples from Around the World
India (Karnataka): Anti-corruption authorities charged two police officers for extortion and attempting to launder bribe money through crypto. One officer allegedly opened 24 accounts and moved more than $470,000 through at least 13 of them.Iran: In March, members of the Islamic Revolutionary Guard Corps (IRGC) were charged with orchestrating one of the largest crypto thefts in the country’s history — the embezzlement of $21 million during the investigation of the collapsed exchange Cryptoland.
These cases show how corruption and crypto-related crime increasingly intersect across jurisdictions.

Conclusion
South Korea now faces a major integrity challenge within its law-enforcement system.

The charges against two police officers reveal how deeply corruption tied to the crypto underworld can penetrate official institutions.
At the same time, global trends suggest this is not an isolated case but part of a broader international pattern that pressures governments to strengthen oversight and transparency in the cryptocurrency sector.

#CryptoCrime , #SouthKorea , #USDT , #CryptoScandal , #CryptoNews

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

The Pump.fun platform, a leading launchpad for meme coins on Solana, continues to be at the center of scandals: employees are not stopping the withdrawal of funds from investments, despite promises of transparency. On November 27, 2025, it became known that the team continues to massively convert venture investments into stable assets, while users complain about payment delays. According to analysts, of the $500 million raised in July 2025 from Framework Ventures and Anagram, over 40% has already been withdrawn to private wallets.

Ben Armstrong, known in the crypto world as "BitBoy", is back in the spotlight — but this time, not for market tips. He’s making headlines for all the wrong reasons after being arrested in Florida on March 25 following claims that a warrant had been issued for his arrest.

📩 “Warrant Issued Over Emails to Judge,” Armstrong Says
On March 21, Armstrong posted on X that he could “confirm there are arrest warrants” against him — allegedly due to emails he sent to Georgia Superior Court Judge Kimberly Childs while acting as his own attorney.
He also claimed that the judge deleted her social media accounts as a result of his messages. No information about Armstrong’s legal representation has been made available, and he has not issued any public comments since.

👮 Not His First Run-In With the Law
This isn’t the first time Armstrong has faced legal trouble. In September 2023, he was arrested during a livestream while confronting a former business partner he accused of holding his Lamborghini.
Earlier, in March 2023, he was also named in a class-action lawsuit for allegedly promoting Binance, which was accused of selling unregistered securities. The case was later settled in August 2024, with Armstrong and NBA star Jimmy Butler agreeing to pay $340,000 without admitting guilt.

🥋From Courtroom to Cage: Armstrong’s Crypto Fight Night
Aside from legal battles, Armstrong stepped into a very different kind of arena in February 2024, taking on pseudonymous memecoin developer "More Light" in a Karate Combat match in Mexico.
After three two-minute rounds, Armstrong won by unanimous decision. Despite the hype, More Light later stated there was “no bad blood” between them in real life and described Armstrong as a “good guy” in person.

🚫 BitBoy Brand Cuts Ties Over Alleged Misconduct
In August 2023, Hit Network — the company behind the BitBoy Crypto brand — officially severed ties with Armstrong, citing alleged substance abuse issues and unprofessional behavior toward staff.
Armstrong denied the accusations and called it an attempted takeover of the brand he helped build.

#CryptoDrama , #CryptoNewss , #CryptoScandal , #SEC , #CryptoNewsCommunity

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

From $0.18 → $75 → CRASHED to $16

810,000+ wallets SHATTERED.

Launched before Trump’s inauguration, $TRUMP looked like the next political moonshot...

But what followed was a crypto bloodbath wrapped in controversy:

1 wallet turned $1.1M → $109M in 48 HOURS
Trump-linked insiders reportedly raked in $100M+ in fees
Whispers of manipulation, shadow wallets & insider trades
Retail investors left holding the bag

Is this the future of political tokens—or a warning shot for every investor chasing hype?

Crypto isn’t a casino.

It’s time to expose the shadows, demand accountability, and protect the chain.

Crypto App Founder Sentenced to Additional 3.5 Years in Prison
Firoz Patel, the founder of a crypto payment app, has been sentenced to an additional 41 months in prison after attempting to hide 450 bitcoins that he was ordered to forfeit. The ruling was handed down by U.S. federal judge Dabney Friedrich in Washington, D.C., based on charges of obstruction of justice.
Attempt to Conceal Multi-Million-Dollar Assets
Patel attempted to hide bitcoins currently valued at over $43.5 million from the court handling his 2020 case. At that time, he had pleaded guilty to conspiracy to operate an unlicensed money transmission business and money laundering.

Back in 2020, he was sentenced to three years in prison and two years of supervised release for operating Payza, which, according to prosecutors, processed transactions in the U.S. without proper licensing. The platform was also allegedly used for money laundering and fraudulent schemes, including Ponzi and pyramid scams.
Manipulating Bitcoin Transactions
As part of his original sentence, Patel was required to identify and surrender all assets acquired through Payza. However, he falsely claimed to have only $30,000 in his retirement account.
After his conviction and before beginning his sentence, Patel started moving BTC linked to Payza. He first attempted to deposit the funds on Binance, but the exchange eventually shut down his account in 2021. He then opened an account on Blockchain.com under his father’s name and attempted to transfer the bitcoins there. When the exchange flagged the transaction, it froze the funds. Patel then instructed a business associate to submit false identification in an effort to unfreeze the assets.
Escape Plan Foiled by Investigators
While serving his sentence, Patel learned that investigators were tracking his hidden bitcoins. To avoid further prosecution, he hired an individual posing as a lawyer to deceive authorities and delay his release. He intended to flee the U.S. upon being freed, but investigators uncovered the scheme before his scheduled release.
Additional Penalties and Asset Seizure
Judge Friedrich not only imposed additional prison time but also ordered Patel to undergo three years of supervised release and forfeit assets worth over $24 million. Additionally, he lost claim to 450 BTC, which are currently held by Blockchain.com.

#bitcoin , #CryptoNewss , #CryptoScandal , #CyberSecurity , #cryptocurrencies

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

A Story of Hype, Greed, and Unprecedented Loss 😱

1️⃣ The Terra Crash: A $40B Vanishing Act
In May 2022, the crypto world witnessed an unthinkable collapse. Terra ($LUNA ) once the darling of decentralized finance lost $40 billion in market value in a single day. Trust shattered. Investors devastated. 🌪️

But what really happened? Let’s uncover the untold chaos that led to this catastrophic meltdown. 👇

2️⃣ What Was Terra (LUNA) and UST?
UST: An algorithmic stablecoin designed to stay pegged at $1 without actual reserves, relying instead on LUNA tokens.Sounds innovative? Sure. But this model was built on fragile trust and that trust crumbled spectacularly.

3️⃣ The Fatal Flaw: A “Stable” Coin That Wasn’t Stable
The system allowed swapping 1 $UST for $1 worth of LUNA. When the peg slipped, this mechanism became a self-destructive spiral instead of stabilizing the price. 🤯

4️⃣ Panic at Anchor: The First Domino
Massive withdrawals from Anchor Protocol which promised a too-good-to-be-true 20% yield on UST deposits triggered the crash.
UST started losing its $1 peg. Investors panicked. Markets spiraled. 📉

5️⃣ Death Spiral: LUNA’s Freefall
As UST plummeted, the system minted trillions of LUNA tokens to restore the peg. Instead, this tanked LUNA’s value from $80 to $0.0001, wiping out billions. 💥

6️⃣ Do Kwon’s Desperate Moves
The flamboyant Terra founder, Do Kwon, scrambled for solutions:
Minting more LUNA.Burning tokens.Deploying Bitcoin reserves.

It was too little, too late. The damage was irreversible. 💔

7️⃣ The Fork That Couldn’t Save Terra
Kwon proposed a blockchain fork to launch “Terra 2.0.” But with trust gone, investors fled. Legal probes followed, and the fallout was massive. ⚖️

8️⃣ Do Kwon’s Secrets Unveiled
Revelations emerged about Kwon’s control of key wallets and actions that led to the crash. His claims of decentralization? A façade. 🕵️‍♂️

9️⃣ Global Regulators Tighten the Grip
Terra’s collapse shook the global crypto market. Governments ramped up investigations into fraud and market manipulation. 🌍

🔟 Do Kwon’s Arrest: The End of the Road
In March 2023, Do Kwon was captured in Montenegro using forged documents. A fugitive no more, he now faces prosecution from multiple countries. 🔒

1️⃣1️⃣ The Lesson: Crypto Risks Are Real
The Terra fiasco exposed the dangers of:
Algorithmic stablecoins.Blind trust in speculative projects.

In crypto, everything can change in an instant. Stay informed, do your research, and never invest more than you can afford to lose. 🚨

🌍💡 The Terra collapse was a wake-up call for the crypto world. Let’s learn from it, stay vigilant, and move forward wisely.

👉 Follow @ThingsToKnow for more updates. Like ❤️, Comment 💬, and Share ➡️ this story to spread awareness!

#TerraCollapse #CryptoScandal #CryptoReboundStrategy

🚨 The Crypto Empire That Crashed Overnight

In 2022, FTX, one of the world’s largest cryptocurrency exchanges, imploded in spectacular fashion—wiping out billions in customer funds and shaking the entire crypto industry.

✔️ Founded by Sam Bankman-Fried (SBF), FTX was seen as a crypto savior, backed by celebrities and venture capital giants.

✔️ Behind the scenes, customer funds were secretly funneled to SBF’s hedge fund, Alameda Research.

✔️ When the truth surfaced, FTX filed for bankruptcy, and SBF was arrested for fraud.

This wasn’t just a crypto crash—it was a modern-day financial scandal with global consequences.

💰 The Rise – From Dorm Room to Crypto Royalty

🚨 SBF launched FTX in 2019, promising transparency and innovation.

🚨 The exchange grew rapidly, handling billions in daily trading volume.

🚨 FTX secured naming rights to stadiums, ran Super Bowl ads, and became a symbol of crypto legitimacy.

But beneath the surface, a house of cards was forming.

🔥 The Collapse – A Tweet That Triggered a Meltdown

✔️ In November 2022, a leaked balance sheet revealed Alameda’s heavy reliance on FTX’s own token, FTT.

✔️ Binance CEO CZ tweeted doubts, sparking a bank run on FTX.

✔️ Within days, FTX halted withdrawals, filed for bankruptcy, and SBF resigned.

The crypto world was stunned. Over $8 billion in customer funds vanished.

⚖️ The Fallout – Trials, Trust, and Regulation

🚨 SBF was charged with fraud, conspiracy, and money laundering.

🚨 The collapse led to calls for stricter crypto regulation worldwide.

🚨 Investors, celebrities, and politicians who backed FTX faced scrutiny.

FTX’s downfall wasn’t just a crypto story—it was a cautionary tale about hype, trust, and unchecked power in digital finance.

#FTXCollapse #CryptoScandal #SamBankmanFried #FinancialHistory
#Write2Earn 🚀🔥

Customers of the bankrupt cryptocurrency exchange FTX are moving to strengthen their class-action lawsuit against the law firm Fenwick & West, which the exchange had previously retained. They claim that newly uncovered evidence from investigations and court proceedings shows the firm played a central role in how the fraud within FTX was carried out.
According to a court filing earlier this week, “the FTX fraud was only possible because of Fenwick’s significant assistance,” which allegedly included designing and approving corporate structures that facilitated the misuse of customer funds. FTX clients allege that the firm agreed to establish and represent highly conflicted entities such as sister company Alameda Research and subsidiary North Dimension, which “lacked any safeguards to prevent the loss of billions of dollars.”

Court Proceedings Reveal New Details
The amended complaint states that criminal proceedings against former FTX CEO Sam Bankman-Fried revealed new information about Fenwick’s involvement. FTX co-founder Gary Wang, former Alameda CEO Caroline Ellison, and ex-CTO Nishad Singh testified that Fenwick had been informed of the misuse of funds and gave advice on how to conceal such practices. Singh specifically claims the firm helped disguise unauthorized loans and falsified financial statements.

Independent Examiner: Fenwick Was Deeply Embedded in FTX’s Operations
A report from an independent examiner appointed by the bankruptcy court stated that Fenwick was “deeply connected” to FTX’s leadership and involved in most key decisions that enabled unlawful conduct. The examiner claimed the firm helped create shell companies to mask asset transfers and was behind the introduction of automatic deletion of messages in the Signal app used by FTX executives.

New Legal Claims
The amended lawsuit adds two new counts — alleged violations of securities laws in Florida and California. Fenwick is accused of actively participating in the design, promotion, and sale of unregistered securities, specifically the FTX Token (FTT) and yield-bearing accounts offered by FTX.
Fenwick has consistently denied any wrongdoing, maintaining that its actions were within the scope of legal representation. A similar lawsuit was previously filed against another law firm, Sullivan & Cromwell, but later withdrawn due to insufficient evidence.

#FTX , #CryptoFraud , #CryptoScandal , #CryptoCrime , #DigitalAssets

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

You think you know the story? Think again. Last year, German authorities made headlines for seizing nearly 50,000 BTC from the piracy site Movie2K. They sold it for a quick $2.8 billion... a move that now looks like a colossal mistake. The Bitcoin they offloaded is now worth over $5 billion. 💰📉

​But here's the shocking twist: Blockchain analytics firm Arkham just revealed another 45,000 BTC, also tied to Movie2K, that's been sitting untouched since 2019! This digital treasure chest is worth almost $5 billion today. 🤯

​Why haven't they seized it? Legal red tape! Prosecutors need to legally prove the funds' origin in court before they can touch them. Until then, it's a frozen vault of digital gold.

​This situation highlights a critical point: Governments are sitting on massive crypto stashes, but they're still learning how to play the game. They chose quick cash and left billions on the table, proving that in crypto, the blockchain never forgets, and patience favors the bold. 🧠

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