# 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.

Prosecutors Oppose Sam Bankman-Fried’s Request for New Trial

Prosecutors have opposed Sam Bankman-Fried's request for a new trial, arguing that he failed to present legitimate new evidence. Bankman-Fried’s motion, filed in February, claimed that testimony from two former FTX officials could have challenged the prosecution's fraud narrative, but prosecutors stated these witnesses were known prior to the trial and their testimony does not qualify as new evidence. They also argued that the testimony would not have altered the trial outcome, citing overwhelming evidence that Bankman-Fried misappropriated billions in customer funds. Additionally, prosecutors dismissed Bankman-Fried's claim that FTX was not bankrupt, noting a severe shortfall in cryptocurrency holdings compared to customer claims.

TheNewsCrypto6h ago

Prosecutors Oppose Sam Bankman-Fried’s Request for New Trial

TheNewsCrypto6h ago

CBI Arrests Darwin Labs Co-Founder in Multi-Crore GainBitcoin Scam

India's Central Bureau of Investigation (CBI) has arrested Ayush Varshney, co-founder and CTO of Darwin Labs, in connection with the GainBitcoin cryptocurrency scam. The alleged fraud is estimated to be worth ₹20,000 crore and involves around 29,000 mined bitcoins. Varshney was intercepted at Mumbai airport while attempting to leave the country and arrested on March 10. Darwin Labs developed the technological infrastructure for the operation, including the MCAP token, smart contracts, and various platforms. The CBI is investigating the case under the Indian Penal Code and IT Act to trace misappropriated funds and identify other individuals involved.

TheNewsCryptoYesterday 14:44

CBI Arrests Darwin Labs Co-Founder in Multi-Crore GainBitcoin Scam

TheNewsCryptoYesterday 14:44

US Moves to Seize $3.44M USDT Tied to Crypto Investment Scam

U.S. federal prosecutors have filed a civil forfeiture action to seize approximately $3.44 million in USDT linked to an online cryptocurrency investment scam. The scheme targeted victims across multiple states by establishing trust through mistaken text or encrypted app messages before promoting a fake Ethereum investment opportunity backed by physical gold. Victims were instructed to send ETH to scam-controlled wallets, where funds were converted to USDT and moved through intermediary addresses. The investigation began in late 2024 after reports from four victims. Authorities seized the USDT in early 2025 and are seeking permanent forfeiture. This case is part of broader efforts to recover crypto assets, including recent actions against romance scams.

TheNewsCryptoYesterday 12:44

US Moves to Seize $3.44M USDT Tied to Crypto Investment Scam

TheNewsCryptoYesterday 12:44

$35M Diverted To Crypto: Ex-CFO Gets 2-Year Prison Term

Nevin Shetty, the former CFO of a Seattle tech startup, was sentenced to two years in federal prison for secretly transferring $35 million of company funds into a cryptocurrency platform he controlled. Without authorization, he invested the money in high-yield DeFi protocols, initially earning $133,000. However, the May 2022 collapse of the Terra ecosystem caused the investments to plummet to nearly zero. Shetty confessed only after the loss and was fired immediately. Indicted in 2023 and found guilty on four counts of wire fraud, he was also ordered to repay the stolen funds and serve three years of supervised release. The case highlights the risks of crypto misconduct and increased federal scrutiny.

bitcoinist03/07 23:02

$35M Diverted To Crypto: Ex-CFO Gets 2-Year Prison Term

bitcoinist03/07 23:02

SEC ends fraud case against Justin Sun after $10M settlement

The U.S. SEC has dismissed its fraud case against Justin Sun and his companies, Tron Foundation and BitTorrent Foundation, following a $10 million settlement. Sun agreed to pay the civil fine for violating federal securities laws, and the remaining claims were dismissed with prejudice. The lawsuit, filed in 2023, accused Sun of market manipulation and selling unregistered securities. The case was paused after President Trump took office in 2025 and reversed many prior SEC enforcement actions. While Sun welcomed the resolution, critics, including Senator Elizabeth Warren, condemned the settlement as a "pay-to-play" move, citing Sun's ties to a Trump-backed crypto firm. TRX price showed no immediate reaction.

ambcrypto03/06 08:17

SEC ends fraud case against Justin Sun after $10M settlement

ambcrypto03/06 08:17

TRON Founder Justin Sun and the SEC Reach a Settlement Deal

Justin Sun, founder of TRON, has reached a settlement with the U.S. SEC worth approximately $10 million to resolve a civil fraud case that was previously halted. The deal, which is pending court approval, would lead to the dismissal of charges against Sun, BitTorrent Foundation, and Tron Foundation. The SEC had accused them of illegally generating $31 million, manipulating trading volume, and concealing payments to celebrity endorsers. The case, initially filed in 2023, was paused in February 2025 to explore a resolution. The settlement has drawn criticism from Senator Elizabeth Warren, who questioned the SEC's impartiality. TRON's token price saw a slight increase following the news.

TheNewsCrypto03/06 07:06

TRON Founder Justin Sun and the SEC Reach a Settlement Deal

TheNewsCrypto03/06 07:06

Justin Sun, Tron Entities Reach Settlement With US SEC, $10M Fine Imposed

The US SEC has settled its civil fraud case against Tron founder Justin Sun and related entities, including the Tron Foundation, BitTorrent Foundation, and Rainberry. As part of the settlement, Rainberry will pay a $10 million civil penalty and is permanently enjoined from violating securities laws. The SEC has dismissed all claims against Sun, the Tron Foundation, and the BitTorrent Foundation. The case, filed in March 2023, alleged unregistered sales of TRX and BTT tokens, artificial inflation of trading volumes, and concealed payments to celebrity endorsers. Despite the legal resolution, TRX's price remained around $0.28.

bitcoinist03/06 01:02

Justin Sun, Tron Entities Reach Settlement With US SEC, $10M Fine Imposed

bitcoinist03/06 01:02

TRM Labs Reports $35B Lost to Crypto Scams Worldwide in 2025

TRM Labs reports that crypto-enabled fraud resulted in an estimated $35 billion in global losses in 2025, with over $100 million affecting New Yorkers. The actual figure may exceed $200 billion due to underreporting. Criminals use advanced tactics like social engineering and AI, moving funds rapidly across wallets and chains, making recovery difficult. The report emphasizes the need for better law enforcement training, advanced blockchain and AI tools, and modernized regulations like the RIP OFF Act to combat increasingly sophisticated crypto crime networks.

TheNewsCrypto03/05 13:48

TRM Labs Reports $35B Lost to Crypto Scams Worldwide in 2025

TheNewsCrypto03/05 13:48

Coinbase, Microsoft disrupt Tycoon 2FA phishing network linked to credential theft

Coinbase, in collaboration with Microsoft, Europol, and other partners, has successfully disrupted the Tycoon 2FA phishing-as-a-service platform. This criminal toolkit enabled attackers to steal login credentials and bypass multi-factor authentication (MFA) by using cloned login pages that mimicked trusted services like Microsoft 365. The operation involved seizing key domains through legal action and dismantling the infrastructure powering the service. Coinbase's investigation traced cryptocurrency payments funding the platform, which operated on a subscription model, and attributed its administration to an individual based in Pakistan. The takedown highlights the significant threat phishing poses to the crypto sector, where social engineering remains a major cause of financial losses. This coordinated effort targeted both the operational infrastructure and the financial networks supporting such cybercrime.

ambcrypto03/04 17:06

Coinbase, Microsoft disrupt Tycoon 2FA phishing network linked to credential theft

ambcrypto03/04 17:06

Crypto Exchange Uniswap Prevails In High-Profile Rug Pull Lawsuit

A federal judge has dismissed a lawsuit against Uniswap, ruling that the decentralized exchange cannot be held liable for fraudulent tokens traded on its platform. The case, initially filed in 2022 by a group of investors, alleged that Uniswap enabled rug pulls and pump-and-dump schemes. The judge determined that providing a platform where fraud may occur is not equivalent to actively participating in the fraud. She compared it to a bank processing transactions for a money launderer without knowledge of the crime. Uniswap founder Hayden Adams welcomed the decision, stating that developers of open-source smart contract code should not be held responsible if scammers misuse it. The case was dismissed with prejudice, meaning it cannot be refiled.

bitcoinist03/04 06:05