Crypto Con Artists Busted: Trio Arrested in $10 Million Bank Fraud Scheme


17 Nov 2023 1:00 PM

Three individuals find themselves at the center of a complex crypto scam, accused of defrauding New York banks of more than $10 million....

  • Three individuals, Zhong Shi Gao, Naifeng Xu, and Fei Jiang, are accused of defrauding New York banks of over $10 million through a complex crypto scam.
  • The scam involved converting stolen funds into cryptocurrency and channeling them through foreign crypto exchanges.
  • The perpetrators recruited accomplices, mainly foreign nationals from China and Taiwan residing in the United States.
  • They targeted bank branches in the New York City metropolitan area, gaining control over accounts and manipulating wire transfers.
  • The scammers employed deceptive tactics, orchestrating deposits and transfers between accounts linked to their criminal network.
  • They submitted fraudulent reports to the banks, claiming unauthorized wire transfers, leading to temporary crediting of the involved accounts.
  • The funds were withdrawn in cash or converted into cryptocurrency before the banks could uncover the scheme.
  • The stolen money was sent to crypto exchanges in other countries, making it difficult to recover.
  • The accused individuals face charges that could result in up to 80 years in prison, including charges of aggravated identity theft.
  • Authorities emphasize that the use of cryptocurrency as a tool to conceal identities will not protect fraudsters from accountability.
  • The FBI is committed to tackling such financial crimes and ensuring accountability within the criminal justice system.
  • The Federal Trade Commission reports that over 46,000 Americans lost $1 billion to cryptocurrency scammers between January 2021 and June 2022, highlighting the need for increased awareness, education, and regulatory measures.

The article discusses a complex crypto scam involving the defrauding of New York banks. It highlights the deceptive tactics used by the perpetrators and the challenges in recovering the stolen funds. The authorities are determined to hold the accused individuals accountable and emphasize the need for increased awareness and regulatory measures to combat cryptocurrency scams. Overall, the sentiment is negative due to the criminal activities described.

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You May Ask

Who are the three individuals accused of the crypto scam?How did the scammers manipulate wire transfers?What were the fraudulent reports submitted to the banks?How did the scammers convert the stolen funds?What is the significance of using cryptocurrency in this scam?

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