At this point, it is safe to say that cryptocurrencies have taken off. By taken off we mean that they have become a widespread asset for the trading community. However, every time something becomes popular, there are not so kind people out there who will use other people’s naivety against them.
Just recently, has a Bitcoin and Litecoin fraud been unearthed by the Phoenix Police. According to reports on ForexNewsNow, the fraudster is a 24-year-old resident of Phoenix, Arizona by the name of Joseph Kim. As mentioned in the Illinois US attorney’s Office’s reports the young fraudster has received his punishment and will spend a year and a half in the state prison. Reminiscing his life choices and mistakes.
How much did he steal?
Kim’s fraud didn’t come in with a single case, however. He has actually been charged with multiple cases of stealing from his ex-employer and scamming his friends. His total accumulated amount comes to a little less than $1.2 million. According to Coin Telegraph, Kim has been charged with stealing roughly $600,000 from a company he used to work in, and more than $500,000 from friends and family.
How did he do it?
Consolidated Trading, was the company that used to be Kim’s employer. The firm is based in Chicago and is offering services on currency and commodity trading. With cryptocurrencies becoming so popular, the company decided to change their business model a bit and added a desk for cryptos as well. It so happened that one of the desk operators turned out to be Kim. Now by no means was Kim a good trader, as he had to rely on the cryptos he would steal from the company in order to cover his losses. At first, this activity wasn’t noticed by the company as Kim would just shrug off the questions or just outright lie about them.
But soon after, just like everything else, his luck ran out and the word got out. After finding out, the company immediately fired him, but this didn’t seem enough to stop Kim, as he continued his fraud “career” with friends. Kim would convince his friends and acquaintances that he was a master trader with falsified documents, which assisted him to ask for deposits and handouts.
After two months of this continued behavior, his illegal actions were finally taken notice of and dealt with. After the arrest, Kim has already pleaded guilty of wire fraud. He was testified against by four investors and fined by the CFTC (Commodity Futures Trading Commission).