Dark Web Marketplace Creator Caught with 100k BTC

Russian Sergei Medvedev alleged to be the creator of Infraud darkweb marketplace
09 February 2018   268

In Bangkok, at the request of the Federal Bureau of Investigation, a 31-year-old Russian citizen, Sergei Medvedev, was arrested, suspected of organizing the Darknet markeetplace Infraud. Settlements on the site were made in the cryptocurrency, the local edition of Bangkok Post reports.

Sergei Medvedev
Sergei Medvedev

Infraud traded forged credit cards, illegal financial information, drugs, weapons and rare species of wild animals. During a search on Medvedev's accounts, FBI officers found 100,000 bitcoins. At the moment of press, 100k BTC is around $824M.

The shadow marketplace was founded in 2010 by Ukrainian citizen Svyatoslav Bondarenko, however, a large international group of hackers was involved in his activities. For seven years, it inflicted US damage on $ 530 million.

The Infraud server was closed by the US authorities on Tuesday, February 6. Previously, 32 members of the group were arrested. Another 18 people, in particular the founder of the site, Svyatoslav Bondarenko, are wanted in 15 countries.

SEC Suspends Trading in 3 Companies

On Friday The U.S. Securities and Exchange Commission temporarily suspended the trading of three companies as they made the purchase of cryptocurrency and blockchain-related assets
17 February 2018   126

According to the announcement, the trade of  Cherubim Investments, Inc., PDX Partners, Inc., and Victura Construction Group, Inc. will be suspended between 9:30 a.m. EST Friday and March 2. The notice was dated Feb. 15.

SEC stated that its trading suspension orders state that recent press releases issued by CHIT, PDXP, and VICT claimed that the companies acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology, among other things.

The release also indicates additional reasons for the suspensions. The agency’s orders also say there are questions regarding the nature of the company's business operations. In case of CHIT, the Commission suspended trading in the securities because of its delinquency in filing annual and quarterly reports.

In August 2017, the SEC  issued a warning for investors about the companies that may publicly announce ICO or coin-related events to affect the price of the company’s common stock.

Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. 

U.S. Securities and Exchange Commission