Alleged UK Crypyo Scammer Extradited to US

Renwick Haddow is accused of misappropriating more than $36M from Bitcoin Store and Bar Works
16 April 2018   474

On Friday, the FBI reported that the 49-year-old British Renwick Haddow was extradited from Morocco to the US to appear before the federal district court of the Southern District of New York. He is accused of misappropriating more than $36M from Bitcoin Store and Bar Works investors. This is reported by Bitcoin. com.

Haddow was arrested in Morocco in July 2017, after the SEC put forward a charge of fraud against him. He used sales representatives to make cold calls to potential investors and sell securities of two companies under his management. At that time, Haddow had a dark past behind him.

According to the suit of the SEC, in the promotional materials shown to investors of both companies, in addition to other false facts, it was told about top managers who did not actually exist. Attracted with the help of the Bitcoin Store and Bar Works, Haddow ferried to Morocco and Mauritius.

In the Bitcoin Store promotional materials, investors were informed that this is an "easy-to-use and safe way to store and trade bitcoins," and that the company's gross sales amount to several million dollars. Nevertheless, the SEC claims that Bitcoin Store, firstly, did not perform any operations at all, and secondly, it has no declared gross sales volume. For example, in 2015, Bitcoin Store bank accounts accounted for less than $ 250,000 through inbound transactions, and none of these dollars appear to have come from customers. Haddow took the pseudonym "Jonathan Black" to hide his involvement in the case, and also lied about the great experience in the financial sphere.

As alleged in our complaint, Haddow created two trendy companies and misled investors into believing that highly-qualified executives were leading them to quick profitability.  In reality, Haddow controlled the companies from behind the scenes and they were far from profitable.
 

Andrew M. Calamari

Director, SEC’s New York Regional Office

Haddow is accused of two phone fraud cases. For each of the charges, he faces up to 20 years in prison.

Japan to Tighten Regulation Due to Zaif Hack

$ 62 000 000 worth cryptocurrency was stolen from the Zaif exchange few weeks ago
25 September 2018   82

Hacking of Zaif exchange is the reason for toughening control over the market by the financial regulator of Japan, Reuters reports.

The first measure taken was administrative sanctions against the exchange and its operator Tech Bureau Corp. The Financial Services Agency (FSA) has expanded the list of requirements for the latter, pointing out the need to identify preventive measures and search for the organizers of the theft.

Shortly before that, researchers of the Japanese financial company Tech Bureau Corp could not provide details of the theft of $ 62 million from the Zaif crypto exchange at the request of the FSA. The Osaka-based operator had to investigate the causes, consequences of the theft and options for compensating the victims. According to the Agency, the financial company could not cope with the task.

According to the Tech Bureau, the exchange was hacked on September 14 within a few hours. The problem with the server was discovered by the site staff on 17 September. Official confirmation of the incident and notification of the authorities was made only a day later.

Recall, the theft of $ 60 million from the Japanese stock exchange Zaif caused a surge of volatility of bitcoin. For a short time the price was able to overcome the distance of $ 400.