Trader Stole $2.8M Worth Crypto from His Employer

The prosecution alleges that during his work, Kim secretly withdrew 284 BTC from company's account
16 February 2018   896

 24-year-old trader from Chicago is accused of stealing Bitcoins and Litecoin for $ 2 million from his employer. This is reported by the Bloomberg.

Joseph Kim is accused of committing fraudulent acts against his employer Consolidated Trading LLC. According to the accusation, Kim illegally transferred the company's crypto currency to his own purse to cover losses from unsuccessful trade transactions.

In a letter that Kim sent to his leadership last November, he pleaded guilty.

It was not my intention to steal for myself. Until the end I was perversely trying to fix what I had already done. I can't believe I did not stop myself when I had the money to give back, and I will live with that for the rest of my life.
 

Joseph Kim (as ABC7 Chicago reports)
Trader 

After Kim was hired to work as a trader in Consolidated Trading, he was banned from trading outside of working hours in order to avoid a conflict of interest, which he agreed to do, but a week after taking office he transfered 980 Litecoin ($ 48,000) from the company's account to its own wallet. When a day later the employer discovered the loss and asked Kim, he replied that he had transferred the money "to his own purse for security reasons." Kim said that this purse will serve as an "intermediate storage space", which supposedly should protect him from the alleged problems with the Bitfinex exchange.

Later, when the employer asked him the same question, the trader stated that he had transferred the money back to the Consolidated wallet, but the investigation found that the money was not returned to the company's account.

In November, Kim again decided to take care of the funds of his firm and brought out about 55 bitcoins for a total of $ 433,000. Kim stated that these bitcoins were "blocked" and he was doing their unlocking. From his words, the management realized that he was going to return the assets to the company's account.

The prosecution alleges that during his work, Kim secretly withdrew from the company's account 284 bitcoins or about $ 2.8 million.

During the interrogation, Kim said that he invested the first 55 bitcoins in short futures positions. Later, he admitted that he had transferred Litecoin to bitcoins for the same purpose, and borrowed the remainder of the amount to prevent the forced elimination of his marginal positions.

Consolidated managed to withdraw from Kim's purses 144 bitcoins. The net loss of the company was $ 603,000.

US Authorities to Sell $4.3M Worth Seized BTC

As reported, the Bitcoins were seized during different federal investigations
18 October 2018   82

The US Federal Penitentiary and Marshals Service has announced an auction, during which 660 Bitcoins will be sold, previously confiscated by law enforcement agencies. The current market value of the coins put up for sale is about $ 4.3 million, CoinDesk reports.

Bitcoins offered for sale were seized during federal criminal, civil and administrative investigations.

The auction will be held on November 5, and to participate in it, you must register no later than October 31 and make a deposit of $ 200,000.

The trades will be divided into two parts and include the sale of six blocks of 100 BTC and one more block of 60 BTC. Auction participants will not be able to view other people's rates or change their own.

The Office clarified that part of the assets put up for auction includes Bitcoins, which were seized during the recent investigations into the cases of the traders Teresa Tetley and Thomas Mario Costanzo. Teresa Tetley was sentenced in July to a year in prison on charges of trading in cryptocurrency without the necessary license and laundering money obtained from drug trafficking.

The Marshals do not report which part of the bitcoins seized from Tetley and Costanzo is put up for auction, however, it was previously known that 40 BTC were withdrawn from the first, and 80 BTC from the second.

Two previous major auctions for the sale of confiscated bitcoins were held in the United States in January and March of this year. In the first case, 3813 BTC was sold, in the second - 2170 BTC.