# Fraud Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Fraud", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Crypto Dream Turns Nightmare As SafeMoon CEO Gets 100 Months In Jail

SafeMoon CEO Braden John Karony has been sentenced to 100 months in US federal prison after being convicted on charges of securities fraud, wire fraud, and money laundering. Prosecutors proved that Karony and others misled investors by falsely claiming that SafeMoon’s liquidity pools were locked, while secretly diverting over $9 million for personal use, including luxury homes and vehicles. The fraud severely impacted small investors, including military veterans and hard-working Americans. The court has ordered forfeiture of approximately $7.5 million, with restitution proceedings ongoing to return funds. The case highlights continued law enforcement focus on prosecuting crypto-related fraud.

bitcoinist8h ago

Crypto Dream Turns Nightmare As SafeMoon CEO Gets 100 Months In Jail

bitcoinist8h ago

From a Trillion-Dollar Empire to Prison Appeals: A 35-Page Document Attempts to Rewrite the Ending

Sam Bankman-Fried (SBF), the imprisoned founder of FTX, has filed a 35-page pro se motion seeking to overturn his 2023 fraud conviction and 25-year sentence. Submitted through his mother, Stanford law professor Barbara H. Fried, the motion cites newly discovered evidence and alleges multiple judicial and prosecutorial misconducts. Key claims include: the prosecution allegedly threatened witnesses like Ryan Salame to prevent exculpatory testimony and coerced former FTX engineering head Nishad Singh into changing his statements. SBF also presents a sworn declaration from former FTX data head Daniel Chapsky, arguing that prosecutors misrepresented Alameda Research’s account balances to fabricate a shortfall. Additionally, SBF accuses Sullivan & Cromwell, the law firm handling FTX’s bankruptcy, of undervaluing assets to support the narrative of insolvency—contrary to the eventual 119-143% customer recovery rate. He further suggests political targeting by the Biden administration and requests Judge Lewis A. Kaplan to recuse himself due to perceived bias. Legal experts view the motion as a long shot, as most claims rely on evidence that may not meet the “newly discovered” standard, and challenging judicial bias is rarely successful.

比推11h ago

From a Trillion-Dollar Empire to Prison Appeals: A 35-Page Document Attempts to Rewrite the Ending

比推11h ago

Sam Bankman-Fried Appeals Conviction While Crypto Security Braces for the Quantum Era with $BMIC

Sam Bankman-Fried, founder of FTX, has appealed his fraud conviction and 25-year sentence, reopening a major case that highlighted a catastrophic breakdown of trust in crypto. As the industry grapples with this legacy, attention is shifting toward next-generation security solutions. A key emerging threat is quantum computing, which risks breaking current encryption standards. The article highlights $BMIC as a project built to address this with a post-quantum cryptographic security stack, including quantum-resistant wallets, staking, and payments. Having raised over $446K in its presale, BMIC represents a growing investor focus on preemptive security rather than reactive fixes, positioning itself as a potential new standard in crypto infrastructure.

bitcoinist14h ago

Sam Bankman-Fried Appeals Conviction While Crypto Security Braces for the Quantum Era with $BMIC

bitcoinist14h ago

SBF Appeals from Prison, 35-Page Document Accuses Judicial Misconduct

Sam Bankman-Fried (SBF), the founder of FTX currently imprisoned, is appealing his fraud conviction and 25-year sentence through a 35-page pro se motion filed by his mother. The motion cites newly discovered evidence and alleges multiple judicial and prosecutorial misconducts. Key claims include the absence of favorable witnesses like Ryan Salame, who was allegedly threatened by prosecutors, and coerced testimony from Nishad Singh. SBF also challenges the prosecution’s financial narrative, presenting a sworn statement from former FTX data head Daniel Chapsky arguing that Alameda’s account was misrepresented to show artificial losses. Additionally, SBF accuses Sullivan & Cromwell, FTX’s bankruptcy counsel, of undervaluing assets to support the narrative of insolvency, despite high customer recovery rates. The motion further suggests political targeting by the Biden administration and requests Judge Kaplan’s recusal due to alleged bias. Legal experts view the appeal as an uphill battle given the high bar for new evidence and judicial discretion in such motions.

marsbit23h ago

SBF Appeals from Prison, 35-Page Document Accuses Judicial Misconduct

marsbit23h ago

FTX Founder Sam Bankman‑Fried Pushes For New Trial In New York

Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, has filed a pro se motion in a New York federal court requesting a new trial. He argues that new witness testimony could undermine the prosecution's case and challenge key aspects of the narrative that led to his conviction. Bankman-Fried, who is currently serving a 25-year prison sentence for fraud and other charges, continues to dispute the legitimacy of FTX's bankruptcy. He claims the company was not insolvent and alleges that lawyers initiated bankruptcy proceedings for their own financial benefit without his authorization. This motion is a separate attempt to reopen the case alongside his ongoing appeal.

bitcoinistYesterday 22:31

FTX Founder Sam Bankman‑Fried Pushes For New Trial In New York

bitcoinistYesterday 22:31

U.S. courts deliver sentencing in SafeMoon case as SBF pushes for new trial

Two major U.S. crypto fraud cases advanced differently on February 10. John Karony, former CEO of SafeMoon, was sentenced to 100 months in prison after victims testified about financial losses caused by his fraudulent assurances. The judge rejected defense arguments and described the scheme as "a massive fraud." Separately, Sam Bankman-Fried filed a pro se motion for a new trial, arguing new witness testimony could weaken the case against him. He was previously convicted and sentenced to 25 years for misusing FTX customer funds. These developments show how crypto cases are diverging—some reaching final sentencing, while others continue through prolonged appeals.

ambcryptoYesterday 21:01

U.S. courts deliver sentencing in SafeMoon case as SBF pushes for new trial

ambcryptoYesterday 21:01

Crypto And Banks Clash Again Over ‘Skinny’ Fed Accounts Ahead Of Tuesday’s Meeting

A long-running dispute between the U.S. banking sector and the crypto industry is intensifying over the Federal Reserve’s proposal to introduce “skinny” master accounts. These limited accounts would allow eligible fintech and crypto firms direct access to the Fed’s payment infrastructure—but without full banking privileges, such as holding balances or earning interest. The debate has drawn sharp divisions. Crypto advocates, including Circle and the Blockchain Payments Consortium, argue that such access would improve payment system resilience and reduce anti-competitive practices. Others, like Anchorage Digital, support the idea but criticize its limitations. Banks, however, express strong concerns. The American Bankers Association warns that many crypto firms lack long-term supervisory history and operate under evolving regulatory frameworks, raising fraud and oversight risks. The Fed is reviewing 44 comment letters submitted last Friday and aims to propose formal rules by Q4. The tension comes ahead of a White House meeting aimed at easing disputes between traditional finance and crypto firms, particularly around stablecoin yield and regulatory clarity.

bitcoinistYesterday 07:39

Crypto And Banks Clash Again Over ‘Skinny’ Fed Accounts Ahead Of Tuesday’s Meeting

bitcoinistYesterday 07:39

Crypto Alert: 2 Victims Lose Over $60M In Address Poisoning Scam

Cryptocurrency users are facing significant losses due to address poisoning scams, where attackers send tiny "dust" transactions from lookalike addresses. When users copy what appears to be a familiar address, they instead send funds to a fraudulent account. In January, one victim lost $12.25 million, following a $50 million loss in December. Additionally, signature phishing is rising sharply, with $6.27 million stolen from 4,741 victims in January—a 207% increase from the previous month. These scams trick users into approving malicious smart contracts. Analysts report approximately 270 million poisoning attempts across Ethereum and Binance Smart Chain, targeting 17 million addresses. Over 6,633 confirmed theft cases have resulted in more than $83.8 million in losses. The Fusaka upgrade on Ethereum, which reduced transaction fees, has made it cheaper for scammers to execute these attacks. Stablecoins like DAI are often used to move illicit funds due to a lack of cooperation with freezing mechanisms.

bitcoinist2 days ago 11:12

Crypto Alert: 2 Victims Lose Over $60M In Address Poisoning Scam

bitcoinist2 days ago 11:12

Forbes 30 Under 30 in Trouble Again: Fintech CEO Accused of Fraud

Forbes 30 Under 30 honoree Gökçe Güven, the 26-year-old founder and CEO of fintech startup Kalder, has been charged by the U.S. Department of Justice with securities fraud, wire fraud, visa fraud, and aggravated identity theft. The Turkish entrepreneur, who was featured on last year’s list, is accused of misleading investors during a $7 million seed funding round in April 2024. Prosecutors allege that Güven presented a business plan containing false claims, including that 26 brands were using Kalder’s services—though many had no agreement with the company—and that the startup had reached $1.2 million in annual recurring revenue. The government also claims she maintained two sets of financial records and used fraudulent documents to obtain a U.S. visa. This case adds to the growing number of Forbes 30 Under 30 alumni facing legal troubles, including figures like Sam Bankman-Fried and Charlie Javice.

marsbit02/04 10:21

Forbes 30 Under 30 in Trouble Again: Fintech CEO Accused of Fraud

marsbit02/04 10:21

Crypto Stablecoin Law Faces Pushback As New York Prosecutors Target Tether, Circle

New York Attorney General Letitia James, along with four district attorneys, is pushing back against the newly enacted GENIUS Act, the first major U.S. stablecoin law. They argue the law fails to protect victims of financial crimes, as it does not require stablecoin issuers to return stolen funds. This omission, they warn, could embolden companies to retain stolen assets. The prosecutors specifically criticized the two largest issuers, Tether and Circle. They allege Tether inconsistently freezes funds and primarily cooperates only with federal law enforcement. They claim Circle’s policies are “significantly worse,” alleging it often retains control of frozen assets to continue earning interest, creating a financial incentive to delay returning funds. Both companies rejected the allegations, asserting their commitment to combating illicit activity.

bitcoinist02/04 08:05

Crypto Stablecoin Law Faces Pushback As New York Prosecutors Target Tether, Circle

bitcoinist02/04 08:05

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