Chicago trader stole more than 2 million dollars in Bitcoin and Litecoin
A Chicago trader Joseph Kim, who was working for the Consolidated Trading LLC stoles about 2 million dollars in cryptocurrencies. He stole this money to cover his losses and after that lied regarding it to cover gambling debts.
On Thursday Joseph was charged with a fraud done by him and which was the first criminal prosecution involving the cryptocurrency trading industry bought by John Lausch. The victim has to appear on Friday in Chicago.
In September consolidated created a cryptocurrency group to connect in currency trading and that same month Kim also stepped in the unit. He worked as an assistant bond trade as per the criminal complaint. His crime appears to be commenced within few weeks of his transfer to the next segment as per the US. Kim also cleared his superior that he held private cryptocurrency accounts and was also ordered to end all private trading external of his work to keep away from a conflict of interest. And so he agreed to do so.
After joining the same weekend, Kim transferred more than 980 Litecoins which was about 48000 dollars from a consolidated account that was not associated with the company. After few days an administrator found out that the Litecoin transfer. He questioned Joseph regarding this, who clarifies that he moved the funds to his private digital wallet because of the safety.
Kim also specifies that it was done to provide as an intermediary holding space to keep away from issues he asserts to be having with the cryptocurrency exchange Bitifinex positioned in Hong Kong. After the inquiry done by the supervisor to Kim regarding the transfer, he again and again and again clarifies that he sends Litecoin to a consolidated wallet where he alleged they were actively held.
Fraud was in much larger amount
After the inquiry agents searched all related currency records as well as determine the Litecoin were never transferred into a Consolidated digital wallet. After that in November, again supervisor noted regarding the transfer of about 55 Bitcoins. These bitcoins were valued at about 433,000 dollars and was transferred from the company account into some unrecognized account. On this Kim claimed that transfer of Bitcoin had been blocked and he tries to unblock them.
As per the prosecutors’ Bitcoins were actually stolen by Kim and secretly transferred about 284 Bitcoins which was valued at about 2.8 million dollars from company’s account to private account which was controlled by him. As per the records, it was also confirmed that Kim transferred about 102 Bitcoins which had a value of about one million dollars back again to company’s account. He again transferred the remaining 182 Bitcoins also afterwards.
On investigating Kim clarifies that he was engaged in personal trading utilizing about 55 Bitcoins which was actually of Company’s account and invested that in short future portions. He also admitted that he converted Consolidated’s Litecoin that was taken into Bitcoin. He also admitted that he continued stealing cryptocurrency from company accounts to cover his margins losses, calls as well as many private investments.
After all justification, Consolidated succeeded to recuperate about 144 Bitcoins from Joseph’s wallet. The overall loss company had to face was of 603,000 dollars.
Thus US Attorney charged Joseph Kim with wire fraud and as per that Kim had to be in prison for 20 years. He was the foremost individual of Chicago to be charged and punished with wire fraud relating to cryptocurrency.
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