Europol Arrests Criminals Using Crypto for Money Laundering

The suspects deposited more than 8 million euros in cash using 174 bank accounts
11 April 2018   567

Europol, the law enforcement agency of the European Union formed to handle criminal intelligence and combat serious international organised crime and terrorism through cooperation between competent authorities of EU Member States, has carried out a special operation and eventually caught a group of criminals involved in money laundering using cryptocurrency. The crime ring of 11 people laundered more than 8 million euros from drug trafficking.

Europol has coordinated a Tulipan Blanca operation which was performed by Spanish Guardia Civil along with Finnish authorities and Homeland Security Investigation of US. Members of a crime ring, based in Spain, were laundering money made from selling drugs by using credit cards and cryptocurrencies, and then sending money back to Colombian drug dealers.

Tulipan blanca operation by EuropolTulipan blanca operation by Europol

According to the Europol press release the criminals linked credit cards to the bank accounts, and then some of the criminals travelled to Colombia with credit cards and made several cash withdrawals from the bank accounts.

They [criminals] picked up the illicit proceeds in cash, which were then split into small quantities to be deposited into hundreds of third bank accounts – a criminal method known as smurfing.
 

Europol Press Release

As a result, 11 individuals were arrested and 137 more are currently under investigation. Reportedly suspects deposited more than 8 million euros in cash using 174 bank accounts.

Europol reported that it has organised special training courses to assist law enforcement officers in identifying the use of cryptocurrencies by organised crime networks.

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   235

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.