BALTIMORE – An investigation led by the Homeland Safety Investigations (HSI) Baltimore subject workplace resulted within the indictment of a Vietnamese nationwide for his involvement in an unprecedented cryptocurrency-related fraud scheme.
Le Anh Tuan, 26, was charged with one rely of conspiracy to commit wire fraud and one rely of conspiracy to commit worldwide cash laundering in reference to a scheme involving the “Baller Ape” non-fungible tokens (NFT).
“HSI Baltimore is all the time taking a look at new tendencies transnational felony organizations are exploiting to additional their unlawful operations” mentioned Selwyn Smith, performing particular agent accountable for HSI Baltimore. “On this case, cyber criminals used the rising market of non-fungible tokens to prey on buyers in search of to diversify their portfolios and stole $2.6 million in cryptocurrency. HSI Baltimore will proceed to analyze felony organizations working in rising applied sciences. HSI Baltimore is proud to have partnered with the Division of Justice’s [DOJ] Fraud Division to place an finish to this thievery.”
Tuan was allegedly concerned within the Baller Ape Membership, an NFT funding mission that offered NFTs within the type of varied cartoon figures, usually together with the determine of an ape. In keeping with the indictment, shortly after the primary day Baller Ape Membership NFTs have been publicly offered, Tuan and his co-conspirators engaged in what is called a “rug pull,” ending the purported funding mission, deleting its web site, and stealing the buyers’ cash.
Based mostly on blockchain analytics, shortly after the rug pull, Tuan and co-conspirators laundered buyers’ funds by “chain-hopping,” a type of cash laundering wherein one sort of coin is transformed to a different sort and funds are moved throughout a number of cryptocurrency blockchains. Tuan and co-conspirators additionally used decentralized cryptocurrency swap companies to obscure the path of Baller Ape buyers’ stolen funds.
“This investigation and prosecution exemplifies the significance of public-private partnerships,” mentioned HSI Govt Affiliate Director Steve Ok. Francis. “Because of our sturdy relationships with business companions, HSI acquired info resulting in this investigation and supreme indictment. HSI will proceed to analyze felony organizations working in rising applied sciences and are proud to have labored with the Division of Justice Fraud Division to place an finish to this felony exercise.”
In complete, Tuan and co-conspirators obtained roughly $2.6 million from buyers, which represents the most important NFT-scam charged so far. If convicted of all counts, Tuan faces as much as 40 years in jail.
The HSI Baltimore-led investigation is ongoing with important help from the DOJ’s Fraud Division.
All investor victims of the Baller Ape Membership scheme are inspired to go to Justice.gov/criminal-vns/crypto-enforcement to determine themselves as potential victims and acquire extra info on rights as victims, together with the power to submit a sufferer influence assertion.
An indictment is merely an allegation and all defendants are presumed harmless till confirmed responsible past an inexpensive doubt in a court docket of legislation.
HSI is the principal investigative arm of the U.S. Division of Homeland Safety (DHS), chargeable for investigating transnational crime and threats, particularly these felony organizations that exploit the worldwide infrastructure by which worldwide commerce, journey, and finance transfer. HSI’s workforce of over 10,400 workers consists of greater than 7,100 particular brokers assigned to 220 cities all through the US, and 80 abroad places in 53 international locations. HSI’s worldwide presence represents DHS’s largest investigative legislation enforcement presence overseas and one of many largest worldwide footprints in U.S. legislation enforcement.