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NX One Avenue Commercial Projects in Noida 
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legit-scam-review · 6 years
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Arrests Making Headlines Across the Globe
Gone are the days when shady dealings in crypto were perceived as immune to the clutches of law enforcement.
Illicit crypto proceeds can be shuttled between wallet addresses at the click of a mouse, and their obfuscation behind the multiple strings of numbers and letters of wallet addresses can create a dizzying — if not impenetrable — cryptographic maze for authorities to navigate.
But the criminals themselves present a more concrete target, and as they interface with everything from crafty code to unwieldy hardware to ‘traditional’ firearms, there has been some success in 2018 in nabbing some of the year’s darkest — and most imaginative — offenders.
From soap actors to former lawmakers, Cointelegraph takes stock of some of the most illustrious arrests of the figures behind crypto’s high crimes and misdemeanours this year.
Foiled supercomputer Bitcoin heist in Russian nuclear no-man’s land
In February, Russian security agents scored a coup against a group of nuclear engineers at a top-secret nuclear warhead facility who tried to use one of the country’s most powerful supercomputers to mine Bitcoin (BTC).
The engineers worked at the Federal Nuclear Center in the western city of Sarov — formerly one of the Soviet Union’s closed-off cities, unmarked on historic maps and shrouded in secrecy.
As one of the Soviet “closed administrative territorial entities,” Sarov was then known as Arzamas-16, and was the center of research and production for the first Soviet atomic bomb and hydrogen bomb under Joseph Stalin. Special permits are still required today for ordinary Russians to visit it.
With such a stellar off-grid history, you’d think the Bitcoin-hungry nuclear engineers might have suspected that connecting the site’s supercomputer — a 1 petaflop titan with a capacity for 1,000 trillion calculations per second — to the internet might draw just a little attention.
As soon as the engineers tried to bring it online, the security department was alerted and was able to foil the scientists, who were peremptorily handed over to the Federal Security Service (FSB).
Tatiana Zalesskaya, the head of the press service for the research institute, told the Interfax news agency that that the attempt was a “technically hopeless and criminally punishable offense.”
A criminal case was reportedly duly opened against them.
Contentiously, it has been alleged that the radioactive polonium-210 used to kill ex-FSB agent Alexander Litvinenko in London in 2006 was produced in Sarov, which houses a plant that is said to be the “world’s only commercial producer of the substance,” according to evidence presented before a court in the United Kingdom.
Sarov’s rogue scientists are not the only ones to have thought of using former Soviet military spaces for crypto mining. The Ice Rock Mining firm has plans to — legally — set up mining operations in a former Soviet bunker located in a cave in Almaty, Kazakhstan.
Caught in the headlights: Thai actor “Boom” arrested on set for alleged crypto fraud family affair
This summer, reports emerged tied to the story of a Finnish millionaire allegedly fooled by a Thai crypto investment scam — to the tune of Bitcoin worth 797 million baht ($24.62 million) at the time.
According to the Thai Crime Suppression Division (CSD), the 22-year-old Finn, identified as Aarni Otava Saarimaa, claimed he had been lured into investing his Bitcoin into several companies, a casino and the gambling-focused crypto token Dragon Coin.
Saarima’s business partner, the Thai businessman Chonnikan Kaeosali, reportedly first approached the CSD in January this year, outlining how the pair had been drawn to purchase shares in three firms — Expay Group, NX Chain Inc. and DNA 2002 Plc — that were purported to be investors in Dragon Coin. He said they had first been approached in connection with the affair by a local Thai group back in June 2017.
The fraudsters are said to have taken their would-be victims around a Macau-based casino where they claimed the gambling-focused token would soon be used. Saarima subsequently transferred his crypto but never saw returns, shareholder papers nor any proof of investment in Dragon Coin.
As the CSD’s investigations unfolded, they identified a group of nine suspects — three of whom were revealed to be a group of siblings from the Jaravijit family. The suspects are said to have swiftly sold the crypto for local fiat currency, dispersing the spoils between various bank accounts.
It was the arrest of one of the siblings this summer — a dapper 27-year-old soap-opera star known as Jiratpisit “Boom” Jaravijit — that first brought the case to public light.  
On Aug. 9, Boom was taken into custody on money laundering charges in the midst of filming at the Major Cineplex Ratchayothin in Bangkok’s Chatuchak district. Local media noted it was the day after the star’s birthday.
It was alleged that the actor had colluded with his siblings to launder the swindled money, after investigations revealed they had bought 14 plots of land worth 176 million baht ($5.44 million).
Boom’s brother, Prinya Jaravijit, is said to have been the ringleader of the scheme, having reportedly received a tip-off from a Thai banker about the wealthy Finn and then setting the heist in motion. Prinya has reportedly fled to South Korea, while Boom’s sister is said to have made contact with the CSD to turn herself in.
The CSD has sought arrest warrants for a further six suspects and frozen a total of 51 different bank accounts in addition to the siblings’ land.
Boom was temporarily released on a 2 million baht ($61,827) bail bond on the condition that he would not leave the country, having argued that his arrest on set in a public place was ample proof he had not been intending to flee.
Earlier this month, another Jaravijit sibling turned himself in to deny the fraud charges, while police met two further suspects: Prasit Srisuwan, a well-known stock trader, and Chakris Ahmad.
Boom’s parents, Mr. Suwit and Ms. Lertchatkamol, have also been questioned after police traced that 90 million baht ($2.78 million) had been transferred to their accounts. Both have denied involvement.
India: Former ruling party lawmaker nabbed “fast asleep” on a construction site
As news of the many-tentacled Bitconnect investment heist continues to unfold globally, recent developments have unearthed a web of kidnappings and extortions allegedly tied to Bitconnect investors in the wealthy state of Gujarat.  
Earlier this month, a former Member of the Legislative Assembly (MLA) for India’s ruling Bharatiya Janata Party (BJP) was remanded in custody for allegedly conspiring with local police to kidnap and extort Bitcoin from a Gujarati Bitconnect investor.
In February, a Surat-based builder by the name of Shailesh Bhatt had charged into the Home Minister’s office in the Indian state of Gujarat, alleging that 10 district cops had kidnapped and extorted him for 176 BTC, worth 9.45 crore* rupee (around $1.31 million).
*A crore rupee denotes 10 million and is equal to 100 lakh rupee in the Indian numbering system (1 lakh rupee denotes 100,000)
The band of 10 was alleged to have comprised not only rank-and-file constables but even a superintendent and a local Crime Branch Inspector.
Bhatt, who is said to have been known for his penchant for Bitcoin trading, claimed he had been duped by one of his business aides, Kirit Paladiya, into thinking that the authorities were keeping him under close watch for his crypto dealings.
He alleged he had been lured by a phone call from his local Central Bureau of Investigation (CBI), where he was allegedly beaten in a “torture room” and asked by a CBI official to pay a cash ransom.
Two days later, he claimed he was kidnapped during a meeting with his aide Paladiya near a fuel station, where he was whisked off to a local farm house. There, he said, “[the police officers] beat me up inside a room and threatened to kill me […] if I did not hand over my Bitcoins.”
Bhatt then accused Paladiya of double-crossing him in cahoots with his influential uncle, the former BJP MLA Nalin Kotadiya, who he claimed had been the one who pressured him into paying the ransom.
Bhatt has himself been subsequently accused of being a wolf in sheep’s clothing. He has become embroiled in a case pertaining to an alleged earlier extortion of a staggering 1.55 billion rupee ($215 million) worth of crypto and cash at gunpoint — including around 2,400 BTC — from two colleagues of well-known local Bitconnect promoter Satish Kumbhani.  
However, Indian authorities nonetheless believed there is some weight behind the accusations against the former lawmaker Kotadiya, first issuing an arrest warrant against him in mid-May.
Kotadiya has repeatedly hit back against the allegations, notably via a WhatsApp video — reposted on Youtube in late April — in which, attired in pink, he claimed he had duly informed authorities about the Bitcoin heist and attributed the full blame for the extortion scandal and conspiracy to Bhatt.
Moreover, he threatened to leak evidence that would implicate even more local politicians in the scandal, saying that Bhatt was protecting them and therefore attempting to “fix him” in the case.
Nonetheless, by mid-June, a local sessions judge declared Kotadiya a “proclaimed offender” (absconder) and demanded he appear before the court within 30 days.
As Kotadiya continued to elude the clutches of law enforcement throughout summer, he was finally nabbed after four months in hiding on Sept. 10. He was reportedly found “fast asleep” on the second floor of a railway quarters still under construction, after a local contractor gave police the golden tip-off.
“When we [eventually] found him, he was sleeping on a mattress and there was just an earthen pot of water in the room.”
As Cointelegraph has reported, Kotadiya’s alleged embroilment has been a political gold mine for the opposition party, the Indian National Congress (INC), who allege that further members of the ruling BJP have used the Bitconnect scam to launder undeclared “black” money.
“The finger of suspicion of this massive scam of illegal cryptocurrency directly points to several top Bharatiya Janata Party leaders and a mastermind — an absconding BJP leader and former MLA Nalin Kotadiya […] Who are the top BJP leaders against whom Kotadiya has damning evidence? We demand an impartial Supreme Court-monitored judicial investigation.”
As of press time, the time of Kotadiya’s custody is up, yet the alleged evidence he claims to wield is yet to have been made public.
Iceland’s Bitcoin miner heist: A high-gliding fugitive and suspect hardware in Tianjin
This year, what has been described as one of Iceland’s “largest criminal cases in history” has seen an outlandish set of twists and turns, leading all the way to the northern Chinese city of Tianjin.
In February, news broke of a series of unprecedented thefts, involving powerful computing equipment that had been stolen in a “highly organized” Bitcoin mining heist. Three burglaries were reported to have taken place in December 2017 and a fourth in January.
The burglars had allegedly swiped 20 million krónur (around $180,000) worth of equipment — 600 graphics cards, 100 power supplies, 100 motherboards, 100 memory discs and 100 CPU processors — from a house in the municipality of Reykjanesbær.
They had also allegedly broken into data centers across both Reykjanesbær and Borgarbyggð, with a total of 600 computers stolen from both places, worth 200 million krónur (almost $2 million). The whereabouts of the equipment, including the computers — said to have been used for Bitcoin mining — remained untraceable, even as authorities monitored energy consumption for suspicious increases.
Police are said to have initially arrested eleven suspects — two of which were ordered to remain in custody, after the Icelandic IT firm Advania produced incriminating surveillance footage taken at the data center in Reykjanesbær. The authorities soon recovered most of the stolen equipment, yet the 600 computers remained elusive. Both suspects were reported in local media as being “uncooperative.”
Then, on April 17, one of the detainees escaped at 1 a.m. from his custody in an “open” (low-security) prison, just a week before authorities were due to move forward with an indictment.
The fugitive, Sindri Thor Stefánsson, fled the country on a passport bearing another man’s name, boarding a passenger plane to Sweden that was embarrassingly revealed to have been carrying Iceland’s prime minister.
Stefánsson subsequently released a statement claiming he had been “legally allowed” to travel on the day he boarded the plane to Stockholm, as his custody ruling expired April 16 and a judge had requested 24 hours to consider its renewal. This, according, to him, left a brief interim during which the warrant for his custody was legally invalid.
He vowed to return home “soon,” telling reporters he would be challenging his two-and-a-half-month custody at the European Court of Human Rights.
Days later, he was arrested in central Amsterdam, after a photo published on Instagram with the hashtag #teamsindri allegedly gave him away, according to media outlet Iceland Monitor. Police at the time did not confirm this was the case.
Allegedly incriminating Instagram snap of Stefánsson in Amsterdam: Source: Iceland Monitor
Despite #teamsindri reportedly briefly trending across Icelandic Twitter, the case last month came to a head when a judge charged Stefánsson — alongside six others — with the theft of the 600 computers. While Stefánsson’s charge has been confirmed as theft, it remains unclear what role the other six defendants are charged with as having in the incident.
Just days after Stefansson’s Amsterdam stint, police in the northern Chinese city of Tianjin seized 600 computers used to mine Bitcoin, after abnormal electricity usage attracted the attention of the local power grid operator. Local media outlets reported the case as being the “largest power theft case in recent years,” but it notably also drew the attention of authorities back in Iceland, who suspected the exact number match of suspect hardware was more than just an uncanny coincidence.
Icelandic police subsequently reached out to Chinese authorities to try to link the two cases, yet no results have been reported since then.
“One of the best out there”: A teenage SIM-swapping crypto hacker with a taste for luxury cars
Last month, Californian police nabbed a hacker who allegedly stole Bitcoin worth over $1 million via a series of so-called ‘SIM-swapping’ heists — also known as ‘port-out scams.’ The 19-year-old suspect, identified as Xzavyer Narvaez, is said to have specialized in stealing cell phone numbers and using them to hijack online financial and social media accounts tied to those numbers.
A SIM-swap attack results in the victim suddenly losing all service, with any incoming calls or text messages redirected to the attacker’s device. As many firms use automated messages or phone calls to handle customer authentication, SIM swaps can be a goldmine in deft hands.  
Prosecutors allege that Narvaez used his ill-gotten crypto proceeds to purchase luxury goods, including a $200,000 high-performance McLaren sport car, which were tracked through records obtained from Bitcoin payment provider BitPay.
According to cybercrime blog Krebs on Security, the investigators interviewed several alleged victims of Narvaez, one of whom claimed he was robbed of $150,000 in crypto after his SIM was hijacked.
Between March and June 2018 alone, Narvaez’s account on crypto exchange Bittrex reportedly saw a flow of a staggering 157 BTC. He subsequently faced charges on four counts of using personal identifying information without authorization; four counts of altering and damaging computer data with intent to defraud or obtain money, or other value; and grand theft of personal property of a value over $950,000, according to court documents.
VICE’s parallel investigations traced Narvaez’s impressive “credentials” in the SIM-swapping underworld, with one source telling the magazine that he was considered “one of the best […] out there.” VICE’s source provided screenshots of Narvaez’s former Instagram account, which allegedly featured euphoric photos of his fresh, 2018 snow white McLaren, accompanied by the caption “live fast, die young.”
Narvaez is said to have come under the radar of law enforcement following the arrest of one Joel Ortiz, described as “a gifted 20-year-old college student from Boston” who was charged this July with using SIM swaps to swipe over $5 million in crypto from 40 different victims.
A redacted “statement of facts” in the case obtained by Krebs revealed that records obtained from Google had traced that a cellular device used by Ortiz to commit SIM swaps had at one point been used to access the Google account identified as [email protected].
In an unrelated case this July, Florida police reportedly arrested a 25-year-old, Ricky Joseph Handschumacher, who was accused of being part of a multi-state, cyber-fraud SIM-swapping ring that operated over the course of two years.
The gang of nine — scattered across different states — was initially tracked in February, when a “worried mom” overheard her son talking on the phone impersonating a telecoms firm employee. The group is alleged to have “routinely paid” employees at cell phone companies to assist in their schemes and to even have discussed a plan to hack accounts belonging to the CEO of the high-profile Gemini Trust company — namely those of Bitcoin billionaire Tyler Winklevoss.
Handschumacher himself posted multiple flashy purchases — including a pickup truck, multiple all-terrain vehicles and jet skis — on his public Facebook profile. Subpoenas to Coinbase revealed he had sold 82 BTC through his account, “virtually all” of which were not purchased on the platform.
As law enforcement closed in on this host of spry and unabashed millennial SIM swappers, in August, a U.S. investor filed a $224 million lawsuit, taking on telecoms giant AT&T. Michael Terpin accused the firm of alleged negligence, claiming that $24 million in crypto was stolen via a “digital identity theft” of his cell phone account.
His complaint alleged that:
“What AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner.”
“Fake news”: OKEx CEO “detained” for alleged fraud
The most recent high-profile, crypto-related “detention” involves OKEx CEO Star Xu, who was the subject of a host of conflicting media reports — and even one viral dumpling-related anecdote — following his sudden tête-à-tête with Chinese authorities this month.
Xu has robustly hit back at rumors that fraud was the reason for his purported ‘arrest,’ after local media reported that he had faced problems at his hotel from a group of investors in WFEE Coin, a blockchain WiFi sharing project they claimed Xu held shares in.
The allegedly defrauded victims had reportedly contacted Shanghai police, who “summoned” the CEO to a police station on Sept. 10 to “put [him] through a round of questioning to get to the bottom of the rumors,” as tech news source ZeroHedge wrote at the time.
A photograph of a police report about Xu on local news outlet Sina Technology appeared to confirm that the police had been notified at 5:59 p.m. on Sept. 10.
Image of police report allegedly involving Star Xu’s detention. Source: Sina Technology
At the same time, alternative sources in China claimed the investors were in fact traders incensed by system failures on the OKEx exchange itself. As Bitcoin (BTC) tumbled on Sept. 5, OKEx platform crashes are alleged to have left users unable to close or otherwise salvage their positions, with losses all the more acute in the case of leveraged trades.
Cointelegraph’s own Chinese sources have since thrown some degree of light on what had spiralled into a sordid media affair, substantiating suspicions that much of the hearsay was indeed “fake news.”
The sources have emphasized that Xu was the one who approached the police of his own accord. In their account, on Sept. 10, Xu had arrived at the Shanghai office of OK Group to meet with customers and conduct other business affairs. He had also — incidentally — made an appointment at the office to meet with a prospective personal fitness coach.
There, the first troubles with the disgruntled investors are said to have begun — who are thought to have been a mix of OKCoin and WFEE Coin investors. Some ambiguity remains as to their exact identity — and whether they were indeed railing against problems tied to the OKEx exchange or held Xu responsible for the vicissitudes of the WFEE token, or a mix of both.
Having gotten wind of Xu’s visit to Shanghai, the aggrieved group is alleged to have been responsible for vandalizing the sign at the city’s OK Group office, as appears to be shown in the following photograph:
Photo showing the apparent vandalization of OK Group’s entrance sign at the Shanghai office
An alarmed Xu is said to have headed back to his hotel, telling his prospective coach to make her way there as well, so as to resume their meeting. The investors are alleged to have then followed the woman’s tracks, suspecting she would lead them to Xu. There, they are alleged to have knocked on the door of the CEO’s room, threatening him.
After four tense hours, Xu is said to have alerted the police. The investors are again alleged to have followed his trail, whereupon Xu called a group of “henchmen” to join him at the police station. At this point, the investors are said to have taken fright and approached the authorities themselves.
In an interview published soon after his release, Xu confirmed he had been held by Shanghai police, seeming to imply he had made the contact on his own initiative:
“In Shanghai, someone reported that I was defrauding. I went to the police station to explain the situation and proved to the police that I did not swindle.”
On Twitter, OKEx COO Cheung also stated that Xu had been encircled by a group in Shanghai, although in his account, the police are said to have arrived to the scene themselves and moved all parties involved to the station. Cheung alleged that:
“While Star was invited to help with the investigation and those people was detained, they raised a fraud complaint against Star. Star stayed to clarify and then left afterward.”
According to Cointelegraph’s sources, no one was witness to Xu’s departure from the station, and it remains unclear how long he spent there.
Xu has stated that while it is “normal” for citizens to exercise their right to make such allegations, he has equally fulfilled his “duty” as a citizen by cooperating with the authorities. In terms of his alleged responsibility for system “abnormalities” on the exchange, Xu has responded that:
“I am not a legal person of OKEx, nor am I a shareholder or a director.”
This point was echoed in Cheung’s parallel tweets, in which the COO stressed that “Star is the founder of OK Group, [and] although we are good friends, he does not run OKEx.” Cheung has added that he felt “disappointed that the story was twisted before the truth came out.”
Local news outlet Jiemian has meanwhile reported that seven out of a total of 300 investors who claimed to have “suffered heavy losses” on the OKEx exchange have since reached a form of settlement with Xu. Notably, repeated system failures are alleged to have caused a total economic loss of “around 300 million yuan.”
In his post-release interview, Xu stressed that while leveraged trading is a “neutral tool in itself,” it is “not suitable for ordinary investors” as the potential for accelerated net profits and losses requires “professional knowledge” to manage the risks involved.
As Jiemian noted, while OKEx offers investors the opportunity to add as much as 20 times leverage to their contracts, unlike traditional futures trading platforms, the exchange operates without regulatory oversight.
As for the WFEE connection, OK Blockchain Capital (OKBC) — a strategic partner of OKEx and a subsidiary of OK Group — has publicly refuted the allegations that Xu had any shares in the project, tweeting on Sept. 12 that:
“The rumor that OK Group founder Star Xu [is] a shareholder of WFEE is fake. Mr. Xu has no equity relationship with WFEE and its company.”
OKBC has further clarified its own relationship with WFEE, stating that “OKBC is one of the institutional investors of WFEE.” WFEE reportedly “acquired OKBC’s and several other capitals’ investments […] when it was still the prime partner of WeShare WiFi — a global leading WiFi sharing company.” The firm added that it had not been notified of subsequent changes to the WFEE white paper, as OKBC “neither participates in” WFEE’s operations, nor in its “results.”
OKBC has also pointed to the fact that OKEx had warned its users of the potential risks posed by WFEE in August and included WFEE in their first “Token Delisting/Hiding Guideline [sic].”
So… what of the dumplings?
Amid the flurry of “twisted” media reports, one viral anecdote alleged that the band of investors had brought a hungry — and short-of-cash — Xu some sustenance, namely dumplings, as he underwent questioning at the police station. The story, despite its oddity, appears to have had some traction. Cointelegraph’s Chinese sources, for their part, dismissed it out-of-hand as an unthinkable and breathless piece of confected hearsay.
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robertkstone · 6 years
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2017 Mazda CX-5 vs. 2018 Lexus NX 300: Crossing Over
With mainstream automakers offering luxury-laden trims while prestige car brands attempt to democratize luxury, we organized four comparison tests to see who does posh better for a capped price of $40,000.
The genesis of Motor Trend’s $40,000 challenge lies with the 2017 Mazda CX-5. We were impressed with the compact crossover from the moment we laid eyes on it, and when the fully refined model turned up at our SUV of the Year competition last August, multiple editors (myself included) remarked on its potential to challenge luxury models rather than its mainstream competitors.
Now we assess that potential.
The defender of the compact luxury crossover genre in this competition is the 2018 Lexus NX 300, another vehicle that pleasantly surprised us during its turn at SUV of the Year four years ago—also earning a place among the finalists.
Just shy of $37,000 to start and $40,463 as tested, our NX lands just above the average new vehicle transaction price. Meanwhile, our CX-5 in top Grand Touring trim comes in at just under $32,000 before options and $33,810 as tested. That gave the Mazda the lowest price in our field of eight and also provided the widest price gap between two competitors in our tests. Granted, you could option the Mazda up to the Lexus’ price point, but more on that later.
Dimensionally, the vehicles are much closer; the Lexus is slightly larger on the outside, but the Mazda rides on a longer wheelbase and offers more rear-seat and cargo space.
Much of what makes luxury appeal to your senses is based on first impressions, and both of these vehicles make strong ones. Approaching the Mazda, you can’t help but be struck by its premium-grade looks. The exterior design is clean and sophisticated, an evening gown compared to the Lexus’ club dress. The Lexus’ many chisels and cuts are extroverted and unmistakable. We think it’s the best application of the brand’s design language on an SUV, but we wouldn’t call it pretty.
Getting behind the wheel has a similar effect. The Mazda’s interior is simple and suave with a dashing two-tone color scheme. Clearly, Mazda spent real money in here: real metal trim; soft, supple leather; rich soft-touch plastics; contrast stitching; and passable fake-wood trim.
The base-model Lexus, meanwhile, plays a clever visual trick by strategically applying the expensive materials in places that draw your eye away from the decontented stuff. Imitation leather, which is good enough to fool you into thinking it’s the real thing, adorns the seats, steering wheel, and arm rests, and it’s set off by contrast stitching. Even the silver-hued plastic trim employs a satin finish that looks expensive. All of this neatly distracts from the center stack’s waterfall of plastic, not to mention the lower door panels that seem better suited to a Toyota Yaris. But how often do you look down there?
Functionally, the Lexus suffers setbacks, as well. The layout of the controls on the center stack makes no sense, and half the functions are controlled by the detestable touchpad-operated infotainment system—which remains distracting even to someone who’s been using it for years. The seating position is very high, which many drivers appreciate, but the steering wheel is so far away even at full extension that you have to choke up dash and pedals to reach it comfortably. The seat itself, at least, is quite comfortable.
We find the Mazda’s layout much more agreeable but still not perfect. The control layout is more traditional and ergonomic, save the rotary controller for the infotainment system, which is so far rearward on the center console that it requires an awkward, gnarled-wrist reach. The screen itself is touch-sensitive, a nice alternative to the knob, but it’s a long reach, and the screen is small by today’s standards. The full-color head-up display, by contrast, is a premium touch. The seat, though, is harder and flatter than we’d like.
Firing the engine and heading out for a drive, the first thing that strikes you is how quiet the Mazda is. Isolation from the outside world is a luxury hallmark, and Mazda has made it a priority. Indeed, applying a professional-grade sound meter to both vehicles returned surprising results: Cruising at 65 mph, the average ambient noise in each vehicle’s cabin is identical. When’s the last time you got in a mainstream vehicle that was as quiet as a luxury car? The Lexus does have a slight advantage, though, as it is quieter under full-throttle acceleration, , but you’ll do a lot less of that than cruising on the freeway.
As you’re driving, you’ll notice the two crossovers have distinct driving personalities. In our experience, the modern luxury shopper equates a degree of sportiness with luxury, and the Mazda has many more degrees than the Lexus. There’s a lightness and nimbleness to the way the Mazda drives, responding immediately and smoothly to your inputs. It can induce smiles even in gentle bends. The engine is generally well-matched to the vehicle, though it could use a little more torque on the bottom end, and the transmission shifts as smoothly and smartly as that of the Lexus. The trade-off is a firmer ride, but it’s a worthwhile one.
The Lexus, by contrast, feels heavy in everything it does. The engine surges when you step on the gas, as if mustering the strength to push the vehicle forward. You need to push the brake pedal harder than expected to slow as quickly as you’d like. It leans more in corners than that sporty look promises and goes over bumps like it’s fully loaded down even when empty. Still, the engine is smooth and responsive in a way that will make you forget it’s turbocharged, and the transmission is spot-on. The ride is softer, as befits the handling. In other words, it befits those who seek a more classic luxury experience.
But your senses can deceive, and here the test numbers don’t jibe with the driving experience. At the test track, the slower-feeling Lexus is actually substantially, surprisingly quicker in a straight line and needs only slightly longer to stop despite being the heavier vehicle. Its straight-line advantage also helps it post a slightly quicker figure-eight result than the Mazda, though the higher lateral g’s recorded in the Mazda speak to its handling prowess. If your roads are straight, you’ll be quicker in the Lexus, but if they’re curved or if you just enjoy driving, you’ll want the Mazda.
That’s you, then, but what of your passengers? Taller riders will appreciate the Mazda’s superior headroom front and especially rear, where the seat is lower. They give up a bit of legroom up front to the Lexus but gain substantially more in the rear. The actual rear seat of the Lexus is more comfortable once you climb up onto it—making sure to watch your head on the way in. Both vehicles’ rear seats recline, but only the Mazda’s are heated.
Speaking of features, it’s generally a given the more you spend over the base price, the more you’ll get. Surprisingly, though, the entry-trim Lexus is fairly well-equipped for its price. Our tester has heated and cooled front seats, active cruise control, a suite of crash-avoidance technology, a moonroof, parking sensors, blind-spot monitors, and a power tailgate—and still came in just over our $40,000 price cap as tested .
To that impressive features list, though, the Mazda adds navigation (albeit like a Garmin from 10 years ago), heated rear seats, a head-up display, and a significantly better-sounding stereo. Neither vehicle came equipped with Apple CarPlay or Android Auto. Both will offer CarPlay soon, but only Mazda has committed to offering Android Auto.
Sometimes the most important feature of all, however, is the ability to take all your stuff with you. Here, the Lexus is at a decided disadvantage. Despite being larger in every external dimension, it has little more than half the cargo space of the Mazda behind the second row. Lowering the rear seats makes the two nearly equitable behind the first row, though to do so in the Lexus you’ll have to go around to the side doors while the Mazda has release handles in the cargo area.
Most other times, time itself is the greatest luxury. The less of it spent at the gas station, the better. You’ll likely see the pump a bit less often with the Lexus despite it being turbocharged. The two offer nearly identical EPA-estimated fuel economy, with the Mazda claiming a 1-mpg advantage across the board. In our Real MPG testing, though, the Mazda struggles in city driving and excels in highway driving; the Lexus is consistent in the city and better than advertised on the highway. Per our testing, the Lexus’ combined fuel economy is noticeably better.
Some say time is money, but money is actually money. In addition to the purchase price, you’re going to incur costs in ownership, including repairs, routine maintenance, registration fees, insurance, and fuel. Then, when it comes time to sell, you’ll have to face the hammer of depreciation.
Per data collected by our partner IntelliChoice, you’re going to come out ahead with the Mazda over five years of ownership. Much of this owes to the lower purchase price and subsequently lower financing costs, but IntelliChoice predicts lower insurance and maintenance costs, as well. The Mazda’s residual value after five years is also surprisingly close to that of the Lexus—which is generally considered the industry gold standard and was the highest of all eight vehicles we evaluated for this test.
In what was by far the closest decision of these four comparison tests, this is what it came down to: money. The actual vehicles are so evenly matched that if they cost the same, we might recommend the Lexus for the badge appeal and white-glove dealer treatment alone. That’s far from the case, though.
IFTTT
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tirupatiwholesale · 7 years
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riofixedgear-blog · 7 years
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Commerce Limited Edition Superstar Endorced Junk Meals Tee Shirts At Boredofthehighstreet.
Magento Milestones ,launches and acquisitions are rising by passing time. With it is 50mm goal, this specific NightForce NXS riflescope retains a slim profile and is easily adaptable to big selection of mounting systems whereas providing most clarity and determination across the complete magnification vary and a big subject-of-view. Danielle Jacob is a longtime online entrepreneur who has maintained strong enterprise relationship with Respected Wholesale Dropshippers since 1990. A brand new time period is generally appealing as a result of it is unique and persons are simply intrigued by a unique identify. So when you've obtained the technical potential, it's always finest to put in writing your particular person plugins. CPanel is one of the best website management tools within the website hosting trade. Many ear, nose and throat points shall be handled with the skilled facilitate and this text supplies the main points of 1 such physician who will simply be approached. You must take in consideration that WordPress Express can serve you as a web site creation toll and that's definitively not an automated robot that can gain an impressive flow of earnings with a push of a button. Whereas good know-how exists, it's really geared for the largest of the massive firms and is not relevant exterior of a completely huge information set. This occurs once you make changes to an old submit, or perhaps in upgrading or improving your wordpress weblog also when you make changes on your permalinks. The implementation of cloud name center solutions is certainly a recreation-changer for corporations with massive customer support operations.
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bunnyaccuser-blog · 7 years
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Gruper The Scammer
As may some of you know I was recently scammed by one of whom I thought was my best maple-friend. He was a Junior Master in my guild and we even used to talk daily. I am speaking of no other than Windia's #1 ranked Wind Archer, Gruper.
As some of you know Gruper is an Israeli mapler much like myself. We even met in real life and hung out together. He chose to reveal much of his personal information to me, giving me access to his accounts and trusting me with his information. He also gave me full access to his credit card via PCGameSupply. Never did I ONCE take anything without permission from him. Despite this relationship Gruper had sought out to end our friendship over a trivial issue and he ended it in the ugliest way possible. I will argue that Gruper is a pedophile and legal actions will be taken against him but that will be kept for another post. Here how things ran down through history
In the past, as a close friend of mine, he was given help leveling up his mule accounts and link-skill characters. I have helped him by providing Kishin and Holy-Symbol mules, exp coupons and potions. He was given legendary and Unique items. He was given tyrant equipment, he was given perfected Gollux items, meso and NX. All of those things given on the one condition that they will be handed back or paid in full. He even stated that he was moving some of my equipment around instead of handing it back since he wished to use it for another character. Last June he was starting to act suspicious, he started fighting with other guilds. He was called out on being selfish or self-centered by other alliance members who did not wish to engage with him any longer. In July, a member of the alliance has contacted me regarding his behavior. she claims that he sent her whispers, skype messages and request that were very sexual. She also claims that she explained to him that she was underage yet his behavior did not change. By this time, she could not stay as an active player and had to quit the game in fear of him committing to his statements. (first red flag)
In October Gruper's personality had changed so greatly that I could not trust him any longer and he was requested to hand back everything I had given him. To this he replied that he will do so when he is able and not when I wish it to be (the seconds red flag). I had explained that I will continue to help him level his accounts on the condition he helps me with mine. Of course, that by that time he was so consumed by his own need that he forsaken me in pursue to only benefit himself. He promised to help me do boss runs in exchange for exp and boss leech and by the time he had every bit of help on my side he rarely helped me level my own characters and with great dissatisfaction. Another side of this is his urges to get things done immediately without the consideration of other's needs – when he was called out on his change of personality he started behaving like a child and become offended for no reason. Days went by without him speaking to me when I had given him a negative answer.
I spoke less with him, calling him less frequently and stopped going the extra mile for him. Now his attitude made MapleStory more of a chore than a fun-unwinding-game. He became demanding and aggravating. He forgot the promises he once gave and started treating his entire buddy-list like they were just in his way. When confronted he never explained his actions, just excusing himself that he is the way he is and he stands behind his words and live with the results.
In January, his on-line girlfriend had left maplestory temporarily and gave him full access to her account, unknowing of his actions. She claims that after she logged on to see that her account was stripped she also lost access to her account, her password was changed and she could not log-in to the game. She reported this to me on skype:
When I had confronted him about all this - Gruper did not reply. Simply, he shut himself down and refused to discuss any of this. The following day Gruper had kicked every member of the guild that was not considered Jr. master (evidence by Nexon) He declined my phone calls. He had removed me off social media and blocked me on skype. The only time he engaged with me was to give me an NX code to cover up for the actual cash he had taken from me. Never trading me in-game or whispering me.
In February, I had contacted his friends to see if they noticed a change in his personality yet they claim that the actions I was describing were unlike him. He became distant from the maplestory community and stopped talking to those close to him.
Once I had noticed that my guild was empty I saw that he was not listed as a Jr. master. I had searched his name and found him in a new guild Anarchy. All attempts to speak with his guild master had failed. She does not seek to end this by resorting to a no-negotiation policy. All attempts to ask her to contact me ended in the same result. I was asked a couple of times to drop my efforts to make peace by contacting her since she is "stressing over this". This raises yet another red flag.
Going back to the events of June, I had contacted two girls that were harassed by Gruper in the past. Both asked my help in filing a police report regarding the topic. Both were under-aged at the time of the occurrence. Both got rather disturbing messages. Both fear Gruper may act upon those things.
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Feiras Livres Em Barueri
Explore melhor de Baladas incluindo informações, atrações e tudo que acontece em São Paulo. As feiras coordenadas pela ADS operam em cinco localizações da capital: na Feira da Clube de Subtenentes e Sargentos da Amazônia (ASA); na Agente Militar (PM); no Clube dos Suboficiais e também Sargentos da Aviação (Cassam); na Escola Estadual Júlio Cesar de Morais Passos (Cidade Novidade) e também a mais nova no Shopping center Sumaúma. A realização de uma busca sobre essa utensílio é importante devido ao rápido desenvolvimento do segmento de eventos culturais informações no meio corporativo que investe em perfurar setores destinados as atividades desse seção e também apresentação de novas empresas dedicadas somente a esse novo retalho. Se pelo menos pequeno número de projetos de leis que tramitam no congresso fossem aprovadas essa classe poderia estar mas protegida da criminalidade. Os banquetes romanos, no começo revestidos de certa simplicidade, copiaram pouco a pouco luxo asiático e também assumiram receita faustosa das festividades orientais. Participar do maior encontro nacional de compras públicas não é somente se capacitar, porém sim se preparar com mais alto padrão de qualidade, aproveitar a presença dos piores doutrinadores do país e trocar testes com colegas de profissão. Já a zona Núcleo-Oeste, sofrem impacto dos países fronteiriços, em próprio Paraguai, visto que os ritmos das quadrilhas e as festas acontecem ao som da Polca paraguaia e sertaneja. Uma mesa simplória, algumas cadeiras no mesmo modelo e, talvez, um belo conjunto de toalhas seja tudo que você precisa para criar uma sala de jantar minimalista Não h�� necessidade de para centenas e centenas de lâmpadas pequenas, tapetes, almofadas e também assim por diante: esta é uma das mas simples convicções para a sala de jantar e realmente remete a um pouco moderno e jovial. EnglishThis would affect the catering trade, home-care services and hairdressing salons. A SBMM acredita que é essencial que os chefes de grupos de pesquisa estejam presentes juntos com seus pesquisadores, técnicos e alunos num envolvente não unicamente cientificamente excitante, porém numa janela para reencontro de amigos e também construção de novas colaborações. VII Workshop em Microfluídica terá duração de três dias, permitindo a realização de apresentações em várias áreas da microfluídica, a participação em minicursos promovidos por empresas especializadas da área e promover permuta entre alunos e estudiosos de diferentes instituições e também/ou empresas do Brasil e também exterior. Se for um jantar que haja mulheres, deve-se ter algo mais de cuidado na escolha, porque, elas não costumam frequentar esses ambientes, devido grande consumo de álcool. Instituiu a Justiça do Trabalho, provento mínimo, limitação de lucros, nacionalização de empresas, direta mediação do Estado para regularizar, utilizar ou orientar as forças produtoras e organização sindical. EnglishTherefore, these meetings need to run in parallel to the curso and need to include senior officials. Curso todo duração 8 dias, em duas semanas, e também é provável escolher unicamente módulo que apenas interessa mais (teor: módulo 1 ou ferramentas: módulo 2) ou fazer curso completo! E também nesse momento bolo deve ser levado para meio do salão, podendo ser conduzido até a iniciado sobre um carrinho de chá com velas acesas, onde todos e cada um dos convidados acompanharão corte pela debutante. Sílvio é mais uma figura constante das feiras itinerantes ao lado de sua bike, onde vende café, cappuccino, bolo, pães caseiros, tortas e também quiches. Vieiras Catering é uma empresa conceituada do ramo da restauração e localiza-se no concelho de Penafiel, região do Porto. Das nossas brasilidades, os músicos disseram gostar de Sepultura e NX Zero, e também que ambicionam adquirir mas CDs de conjuntos brasileiras. Esta página foi modificada pela última vez à(s) 18h30min de 15 de março de 2017. A entrevista coletiva, normalmente, é muito utilizada pelas empresas para aprimorar processo seletivo, quer dizer, enquanto recrutador recebe um número considerável de currículos em perfil da vaga, uma das estratégia é convocar os candidatos para uma entrevista em grupo, porque é gasto pouco tempo, em confrontação as entrevistas individuais e resultado é satisfatório. Ela já está com a marca há três anos e também premiação do negócio vem, de forma majoritária, das feiras itinerantes. Visite agora mesmo nossa página inicial e descubra como você é possível que ser líder de resultados para as pesquisas de Jantar em Meio - Barueri / SP. A Sett nasceu da vontade de desenvolver projetos que envolvam a participação dos clientes e também dos mais gabaritados profissionais de Montes Claros e Belo Horizonte, num espaço de debates e de troca de idéias, com objetivo comum de estruturar os eventos em um ambiente criativo e também personalizado, com estilo e também a qualidade desejada pelo usuário. Autor dos livros Lei de Realização Penal da compilação Leis Especiais para concursos e também Recta Penal Militar da Coleção Sinopses para concursos, um e outro da Editora Juspodivm. Quanto mais nós olharmos para a situação na terra, mas triste nos sentiremos porque mundo está se tornando todo vez pior. Balão de látex número 09 (ou de tamanho homeomorfo), oferece uma excelente relação custo x benefício e é ideal para decoração de festas e também informações. More_vertical Seja como for, talvez possamos terminar anterior do intervalo para jantar. Visite as feiras culturais de sua cidade, você vai se surpreender com a qualidade e também flutuação destes locais, se informe segundo das próximas que ocorrerão na sua zona e programe-se para visitar planeta mágico de alegria e também conhecimento que a cultura pode eventos lhe presentear. A convenção coletiva e realizada somente entre os próprios sindicatos, enquanto contrato coletivo é realizado entre corporação e também companhia, ou mas de uma empresa.
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noidacommercial9 · 3 years
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NX One Noida Extension Review, NX One Office Space, NX One Mall
NX One Noida Extension Review, NX One Office Space, NX One Mall
NX One is a commercial property that gives unlimited opportunity for consumers, sellers and traders. The undertaking is the primary one that has been advanced in line with the needs of creating commercial enterprise opportunity. The challenge has stores, workplaces and studio apartments that makes it smooth for the residents to stay. It helps create a enterprise opportunity for themselves. It…
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legit-scam-review · 6 years
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Arrests Making Headlines Across the Globe
Gone are the days when shady dealings in crypto were perceived as immune to the clutches of law enforcement.
Illicit crypto proceeds can be shuttled between wallet addresses at the click of a mouse, and their obfuscation behind the multiple strings of numbers and letters of wallet addresses can create a dizzying — if not impenetrable — cryptographic maze for authorities to navigate.
But the criminals themselves present a more concrete target, and as they interface with everything from crafty code to unwieldy hardware to ‘traditional’ firearms, there has been some success in 2018 in nabbing some of the year’s darkest — and most imaginative — offenders.
From soap actors to former lawmakers, Cointelegraph takes stock of some of the most illustrious arrests of the figures behind crypto’s high crimes and misdemeanours this year.
Foiled supercomputer Bitcoin heist in Russian nuclear no-man’s land
In February, Russian security agents scored a coup against a group of nuclear engineers at a top-secret nuclear warhead facility who tried to use one of the country’s most powerful supercomputers to mine Bitcoin (BTC).
The engineers worked at the Federal Nuclear Center in the western city of Sarov — formerly one of the Soviet Union’s closed-off cities, unmarked on historic maps and shrouded in secrecy.
As one of the Soviet “closed administrative territorial entities,” Sarov was then known as Arzamas-16, and was the center of research and production for the first Soviet atomic bomb and hydrogen bomb under Joseph Stalin. Special permits are still required today for ordinary Russians to visit it.
With such a stellar off-grid history, you’d think the Bitcoin-hungry nuclear engineers might have suspected that connecting the site’s supercomputer — a 1 petaflop titan with a capacity for 1,000 trillion calculations per second — to the internet might draw just a little attention.
As soon as the engineers tried to bring it online, the security department was alerted and was able to foil the scientists, who were peremptorily handed over to the Federal Security Service (FSB).
Tatiana Zalesskaya, the head of the press service for the research institute, told the Interfax news agency that that the attempt was a “technically hopeless and criminally punishable offense.”
A criminal case was reportedly duly opened against them.
Contentiously, it has been alleged that the radioactive polonium-210 used to kill ex-FSB agent Alexander Litvinenko in London in 2006 was produced in Sarov, which houses a plant that is said to be the “world’s only commercial producer of the substance,” according to evidence presented before a court in the United Kingdom.
Sarov’s rogue scientists are not the only ones to have thought of using former Soviet military spaces for crypto mining. The Ice Rock Mining firm has plans to — legally — set up mining operations in a former Soviet bunker located in a cave in Almaty, Kazakhstan.
Caught in the headlights: Thai actor “Boom” arrested on set for alleged crypto fraud family affair
This summer, reports emerged tied to the story of a Finnish millionaire allegedly fooled by a Thai crypto investment scam — to the tune of Bitcoin worth 797 million baht ($24.62 million) at the time.
According to the Thai Crime Suppression Division (CSD), the 22-year-old Finn, identified as Aarni Otava Saarimaa, claimed he had been lured into investing his Bitcoin into several companies, a casino and the gambling-focused crypto token Dragon Coin.
Saarima’s business partner, the Thai businessman Chonnikan Kaeosali, reportedly first approached the CSD in January this year, outlining how the pair had been drawn to purchase shares in three firms — Expay Group, NX Chain Inc. and DNA 2002 Plc — that were purported to be investors in Dragon Coin. He said they had first been approached in connection with the affair by a local Thai group back in June 2017.
The fraudsters are said to have taken their would-be victims around a Macau-based casino where they claimed the gambling-focused token would soon be used. Saarima subsequently transferred his crypto but never saw returns, shareholder papers nor any proof of investment in Dragon Coin.
As the CSD’s investigations unfolded, they identified a group of nine suspects — three of whom were revealed to be a group of siblings from the Jaravijit family. The suspects are said to have swiftly sold the crypto for local fiat currency, dispersing the spoils between various bank accounts.
It was the arrest of one of the siblings this summer — a dapper 27-year-old soap-opera star known as Jiratpisit “Boom” Jaravijit — that first brought the case to public light.  
On Aug. 9, Boom was taken into custody on money laundering charges in the midst of filming at the Major Cineplex Ratchayothin in Bangkok’s Chatuchak district. Local media noted it was the day after the star’s birthday.
It was alleged that the actor had colluded with his siblings to launder the swindled money, after investigations revealed they had bought 14 plots of land worth 176 million baht ($5.44 million).
Boom’s brother, Prinya Jaravijit, is said to have been the ringleader of the scheme, having reportedly received a tip-off from a Thai banker about the wealthy Finn and then setting the heist in motion. Prinya has reportedly fled to South Korea, while Boom’s sister is said to have made contact with the CSD to turn herself in.
The CSD has sought arrest warrants for a further six suspects and frozen a total of 51 different bank accounts in addition to the siblings’ land.
Boom was temporarily released on a 2 million baht ($61,827) bail bond on the condition that he would not leave the country, having argued that his arrest on set in a public place was ample proof he had not been intending to flee.
Earlier this month, another Jaravijit sibling turned himself in to deny the fraud charges, while police met two further suspects: Prasit Srisuwan, a well-known stock trader, and Chakris Ahmad.
Boom’s parents, Mr. Suwit and Ms. Lertchatkamol, have also been questioned after police traced that 90 million baht ($2.78 million) had been transferred to their accounts. Both have denied involvement.
India: Former ruling party lawmaker nabbed “fast asleep” on a construction site
As news of the many-tentacled Bitconnect investment heist continues to unfold globally, recent developments have unearthed a web of kidnappings and extortions allegedly tied to Bitconnect investors in the wealthy state of Gujarat.  
Earlier this month, a former Member of the Legislative Assembly (MLA) for India’s ruling Bharatiya Janata Party (BJP) was remanded in custody for allegedly conspiring with local police to kidnap and extort Bitcoin from a Gujarati Bitconnect investor.
In February, a Surat-based builder by the name of Shailesh Bhatt had charged into the Home Minister’s office in the Indian state of Gujarat, alleging that 10 district cops had kidnapped and extorted him for 176 BTC, worth 9.45 crore* rupee (around $1.31 million).
*A crore rupee denotes 10 million and is equal to 100 lakh rupee in the Indian numbering system (1 lakh rupee denotes 100,000)
The band of 10 was alleged to have comprised not only rank-and-file constables but even a superintendent and a local Crime Branch Inspector.
Bhatt, who is said to have been known for his penchant for Bitcoin trading, claimed he had been duped by one of his business aides, Kirit Paladiya, into thinking that the authorities were keeping him under close watch for his crypto dealings.
He alleged he had been lured by a phone call from his local Central Bureau of Investigation (CBI), where he was allegedly beaten in a “torture room” and asked by a CBI official to pay a cash ransom.
Two days later, he claimed he was kidnapped during a meeting with his aide Paladiya near a fuel station, where he was whisked off to a local farm house. There, he said, “[the police officers] beat me up inside a room and threatened to kill me […] if I did not hand over my Bitcoins.”
Bhatt then accused Paladiya of double-crossing him in cahoots with his influential uncle, the former BJP MLA Nalin Kotadiya, who he claimed had been the one who pressured him into paying the ransom.
Bhatt has himself been subsequently accused of being a wolf in sheep’s clothing. He has become embroiled in a case pertaining to an alleged earlier extortion of a staggering 1.55 billion rupee ($215 million) worth of crypto and cash at gunpoint — including around 2,400 BTC — from two colleagues of well-known local Bitconnect promoter Satish Kumbhani.  
However, Indian authorities nonetheless believed there is some weight behind the accusations against the former lawmaker Kotadiya, first issuing an arrest warrant against him in mid-May.
Kotadiya has repeatedly hit back against the allegations, notably via a WhatsApp video — reposted on Youtube in late April — in which, attired in pink, he claimed he had duly informed authorities about the Bitcoin heist and attributed the full blame for the extortion scandal and conspiracy to Bhatt.
Moreover, he threatened to leak evidence that would implicate even more local politicians in the scandal, saying that Bhatt was protecting them and therefore attempting to “fix him” in the case.
Nonetheless, by mid-June, a local sessions judge declared Kotadiya a “proclaimed offender” (absconder) and demanded he appear before the court within 30 days.
As Kotadiya continued to elude the clutches of law enforcement throughout summer, he was finally nabbed after four months in hiding on Sept. 10. He was reportedly found “fast asleep” on the second floor of a railway quarters still under construction, after a local contractor gave police the golden tip-off.
“When we [eventually] found him, he was sleeping on a mattress and there was just an earthen pot of water in the room.”
As Cointelegraph has reported, Kotadiya’s alleged embroilment has been a political gold mine for the opposition party, the Indian National Congress (INC), who allege that further members of the ruling BJP have used the Bitconnect scam to launder undeclared “black” money.
“The finger of suspicion of this massive scam of illegal cryptocurrency directly points to several top Bharatiya Janata Party leaders and a mastermind — an absconding BJP leader and former MLA Nalin Kotadiya […] Who are the top BJP leaders against whom Kotadiya has damning evidence? We demand an impartial Supreme Court-monitored judicial investigation.”
As of press time, the time of Kotadiya’s custody is up, yet the alleged evidence he claims to wield is yet to have been made public.
Iceland’s Bitcoin miner heist: A high-gliding fugitive and suspect hardware in Tianjin
This year, what has been described as one of Iceland’s “largest criminal cases in history” has seen an outlandish set of twists and turns, leading all the way to the northern Chinese city of Tianjin.
In February, news broke of a series of unprecedented thefts, involving powerful computing equipment that had been stolen in a “highly organized” Bitcoin mining heist. Three burglaries were reported to have taken place in December 2017 and a fourth in January.
The burglars had allegedly swiped 20 million krónur (around $180,000) worth of equipment — 600 graphics cards, 100 power supplies, 100 motherboards, 100 memory discs and 100 CPU processors — from a house in the municipality of Reykjanesbær.
They had also allegedly broken into data centers across both Reykjanesbær and Borgarbyggð, with a total of 600 computers stolen from both places, worth 200 million krónur (almost $2 million). The whereabouts of the equipment, including the computers — said to have been used for Bitcoin mining — remained untraceable, even as authorities monitored energy consumption for suspicious increases.
Police are said to have initially arrested eleven suspects — two of which were ordered to remain in custody, after the Icelandic IT firm Advania produced incriminating surveillance footage taken at the data center in Reykjanesbær. The authorities soon recovered most of the stolen equipment, yet the 600 computers remained elusive. Both suspects were reported in local media as being “uncooperative.”
Then, on April 17, one of the detainees escaped at 1 a.m. from his custody in an “open” (low-security) prison, just a week before authorities were due to move forward with an indictment.
The fugitive, Sindri Thor Stefánsson, fled the country on a passport bearing another man’s name, boarding a passenger plane to Sweden that was embarrassingly revealed to have been carrying Iceland’s prime minister.
Stefánsson subsequently released a statement claiming he had been “legally allowed” to travel on the day he boarded the plane to Stockholm, as his custody ruling expired April 16 and a judge had requested 24 hours to consider its renewal. This, according, to him, left a brief interim during which the warrant for his custody was legally invalid.
He vowed to return home “soon,” telling reporters he would be challenging his two-and-a-half-month custody at the European Court of Human Rights.
Days later, he was arrested in central Amsterdam, after a photo published on Instagram with the hashtag #teamsindri allegedly gave him away, according to media outlet Iceland Monitor. Police at the time did not confirm this was the case.
Allegedly incriminating Instagram snap of Stefánsson in Amsterdam: Source: Iceland Monitor
Despite #teamsindri reportedly briefly trending across Icelandic Twitter, the case last month came to a head when a judge charged Stefánsson — alongside six others — with the theft of the 600 computers. While Stefánsson’s charge has been confirmed as theft, it remains unclear what role the other six defendants are charged with as having in the incident.
Just days after Stefansson’s Amsterdam stint, police in the northern Chinese city of Tianjin seized 600 computers used to mine Bitcoin, after abnormal electricity usage attracted the attention of the local power grid operator. Local media outlets reported the case as being the “largest power theft case in recent years,” but it notably also drew the attention of authorities back in Iceland, who suspected the exact number match of suspect hardware was more than just an uncanny coincidence.
Icelandic police subsequently reached out to Chinese authorities to try to link the two cases, yet no results have been reported since then.
“One of the best out there”: A teenage SIM-swapping crypto hacker with a taste for luxury cars
Last month, Californian police nabbed a hacker who allegedly stole Bitcoin worth over $1 million via a series of so-called ‘SIM-swapping’ heists — also known as ‘port-out scams.’ The 19-year-old suspect, identified as Xzavyer Narvaez, is said to have specialized in stealing cell phone numbers and using them to hijack online financial and social media accounts tied to those numbers.
A SIM-swap attack results in the victim suddenly losing all service, with any incoming calls or text messages redirected to the attacker’s device. As many firms use automated messages or phone calls to handle customer authentication, SIM swaps can be a goldmine in deft hands.  
Prosecutors allege that Narvaez used his ill-gotten crypto proceeds to purchase luxury goods, including a $200,000 high-performance McLaren sport car, which were tracked through records obtained from Bitcoin payment provider BitPay.
According to cybercrime blog Krebs on Security, the investigators interviewed several alleged victims of Narvaez, one of whom claimed he was robbed of $150,000 in crypto after his SIM was hijacked.
Between March and June 2018 alone, Narvaez’s account on crypto exchange Bittrex reportedly saw a flow of a staggering 157 BTC. He subsequently faced charges on four counts of using personal identifying information without authorization; four counts of altering and damaging computer data with intent to defraud or obtain money, or other value; and grand theft of personal property of a value over $950,000, according to court documents.
VICE’s parallel investigations traced Narvaez’s impressive “credentials” in the SIM-swapping underworld, with one source telling the magazine that he was considered “one of the best […] out there.” VICE’s source provided screenshots of Narvaez’s former Instagram account, which allegedly featured euphoric photos of his fresh, 2018 snow white McLaren, accompanied by the caption “live fast, die young.”
Narvaez is said to have come under the radar of law enforcement following the arrest of one Joel Ortiz, described as “a gifted 20-year-old college student from Boston” who was charged this July with using SIM swaps to swipe over $5 million in crypto from 40 different victims.
A redacted “statement of facts” in the case obtained by Krebs revealed that records obtained from Google had traced that a cellular device used by Ortiz to commit SIM swaps had at one point been used to access the Google account identified as [email protected].
In an unrelated case this July, Florida police reportedly arrested a 25-year-old, Ricky Joseph Handschumacher, who was accused of being part of a multi-state, cyber-fraud SIM-swapping ring that operated over the course of two years.
The gang of nine — scattered across different states — was initially tracked in February, when a “worried mom” overheard her son talking on the phone impersonating a telecoms firm employee. The group is alleged to have “routinely paid” employees at cell phone companies to assist in their schemes and to even have discussed a plan to hack accounts belonging to the CEO of the high-profile Gemini Trust company — namely those of Bitcoin billionaire Tyler Winklevoss.
Handschumacher himself posted multiple flashy purchases — including a pickup truck, multiple all-terrain vehicles and jet skis — on his public Facebook profile. Subpoenas to Coinbase revealed he had sold 82 BTC through his account, “virtually all” of which were not purchased on the platform.
As law enforcement closed in on this host of spry and unabashed millennial SIM swappers, in August, a U.S. investor filed a $224 million lawsuit, taking on telecoms giant AT&T. Michael Terpin accused the firm of alleged negligence, claiming that $24 million in crypto was stolen via a “digital identity theft” of his cell phone account.
His complaint alleged that:
“What AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner.”
“Fake news”: OKEx CEO “detained” for alleged fraud
The most recent high-profile, crypto-related “detention” involves OKEx CEO Star Xu, who was the subject of a host of conflicting media reports — and even one viral dumpling-related anecdote — following his sudden tête-à-tête with Chinese authorities this month.
Xu has robustly hit back at rumors that fraud was the reason for his purported ‘arrest,’ after local media reported that he had faced problems at his hotel from a group of investors in WFEE Coin, a blockchain WiFi sharing project they claimed Xu held shares in.
The allegedly defrauded victims had reportedly contacted Shanghai police, who “summoned” the CEO to a police station on Sept. 10 to “put [him] through a round of questioning to get to the bottom of the rumors,” as tech news source ZeroHedge wrote at the time.
A photograph of a police report about Xu on local news outlet Sina Technology appeared to confirm that the police had been notified at 5:59 p.m. on Sept. 10.
Image of police report allegedly involving Star Xu’s detention. Source: Sina Technology
At the same time, alternative sources in China claimed the investors were in fact traders incensed by system failures on the OKEx exchange itself. As Bitcoin (BTC) tumbled on Sept. 5, OKEx platform crashes are alleged to have left users unable to close or otherwise salvage their positions, with losses all the more acute in the case of leveraged trades.
Cointelegraph’s own Chinese sources have since thrown some degree of light on what had spiralled into a sordid media affair, substantiating suspicions that much of the hearsay was indeed “fake news.”
The sources have emphasized that Xu was the one who approached the police of his own accord. In their account, on Sept. 10, Xu had arrived at the Shanghai office of OK Group to meet with customers and conduct other business affairs. He had also — incidentally — made an appointment at the office to meet with a prospective personal fitness coach.
There, the first troubles with the disgruntled investors are said to have begun — who are thought to have been a mix of OKCoin and WFEE Coin investors. Some ambiguity remains as to their exact identity — and whether they were indeed railing against problems tied to the OKEx exchange or held Xu responsible for the vicissitudes of the WFEE token, or a mix of both.
Having gotten wind of Xu’s visit to Shanghai, the aggrieved group is alleged to have been responsible for vandalizing the sign at the city’s OK Group office, as appears to be shown in the following photograph:
Photo showing the apparent vandalization of OK Group’s entrance sign at the Shanghai office
An alarmed Xu is said to have headed back to his hotel, telling his prospective coach to make her way there as well, so as to resume their meeting. The investors are alleged to have then followed the woman’s tracks, suspecting she would lead them to Xu. There, they are alleged to have knocked on the door of the CEO’s room, threatening him.
After four tense hours, Xu is said to have alerted the police. The investors are again alleged to have followed his trail, whereupon Xu called a group of “henchmen” to join him at the police station. At this point, the investors are said to have taken fright and approached the authorities themselves.
In an interview published soon after his release, Xu confirmed he had been held by Shanghai police, seeming to imply he had made the contact on his own initiative:
“In Shanghai, someone reported that I was defrauding. I went to the police station to explain the situation and proved to the police that I did not swindle.”
On Twitter, OKEx COO Cheung also stated that Xu had been encircled by a group in Shanghai, although in his account, the police are said to have arrived to the scene themselves and moved all parties involved to the station. Cheung alleged that:
“While Star was invited to help with the investigation and those people was detained, they raised a fraud complaint against Star. Star stayed to clarify and then left afterward.”
According to Cointelegraph’s sources, no one was witness to Xu’s departure from the station, and it remains unclear how long he spent there.
Xu has stated that while it is “normal” for citizens to exercise their right to make such allegations, he has equally fulfilled his “duty” as a citizen by cooperating with the authorities. In terms of his alleged responsibility for system “abnormalities” on the exchange, Xu has responded that:
“I am not a legal person of OKEx, nor am I a shareholder or a director.”
This point was echoed in Cheung’s parallel tweets, in which the COO stressed that “Star is the founder of OK Group, [and] although we are good friends, he does not run OKEx.” Cheung has added that he felt “disappointed that the story was twisted before the truth came out.”
Local news outlet Jiemian has meanwhile reported that seven out of a total of 300 investors who claimed to have “suffered heavy losses” on the OKEx exchange have since reached a form of settlement with Xu. Notably, repeated system failures are alleged to have caused a total economic loss of “around 300 million yuan.”
In his post-release interview, Xu stressed that while leveraged trading is a “neutral tool in itself,” it is “not suitable for ordinary investors” as the potential for accelerated net profits and losses requires “professional knowledge” to manage the risks involved.
As Jiemian noted, while OKEx offers investors the opportunity to add as much as 20 times leverage to their contracts, unlike traditional futures trading platforms, the exchange operates without regulatory oversight.
As for the WFEE connection, OK Blockchain Capital (OKBC) — a strategic partner of OKEx and a subsidiary of OK Group — has publicly refuted the allegations that Xu had any shares in the project, tweeting on Sept. 12 that:
“The rumor that OK Group founder Star Xu [is] a shareholder of WFEE is fake. Mr. Xu has no equity relationship with WFEE and its company.”
OKBC has further clarified its own relationship with WFEE, stating that “OKBC is one of the institutional investors of WFEE.” WFEE reportedly “acquired OKBC’s and several other capitals’ investments […] when it was still the prime partner of WeShare WiFi — a global leading WiFi sharing company.” The firm added that it had not been notified of subsequent changes to the WFEE white paper, as OKBC “neither participates in” WFEE’s operations, nor in its “results.”
OKBC has also pointed to the fact that OKEx had warned its users of the potential risks posed by WFEE in August and included WFEE in their first “Token Delisting/Hiding Guideline [sic].”
So… what of the dumplings?
Amid the flurry of “twisted” media reports, one viral anecdote alleged that the band of investors had brought a hungry — and short-of-cash — Xu some sustenance, namely dumplings, as he underwent questioning at the police station. The story, despite its oddity, appears to have had some traction. Cointelegraph’s Chinese sources, for their part, dismissed it out-of-hand as an unthinkable and breathless piece of confected hearsay.
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Arrests Making Headlines Across the Globe
Gone are the days when shady dealings in crypto were perceived as immune to the clutches of law enforcement.
Illicit crypto proceeds can be shuttled between wallet addresses at the click of a mouse, and their obfuscation behind the multiple strings of numbers and letters of wallet addresses can create a dizzying — if not impenetrable — cryptographic maze for authorities to navigate.
But the criminals themselves present a more concrete target, and as they interface with everything from crafty code to unwieldy hardware to ‘traditional’ firearms, there has been some success in 2018 in nabbing some of the year’s darkest — and most imaginative — offenders.
From soap actors to former lawmakers, Cointelegraph takes stock of some of the most illustrious arrests of the figures behind crypto’s high crimes and misdemeanours this year.
Foiled supercomputer Bitcoin heist in Russian nuclear no-man’s land
In February, Russian security agents scored a coup against a group of nuclear engineers at a top-secret nuclear warhead facility who tried to use one of the country’s most powerful supercomputers to mine Bitcoin (BTC).
The engineers worked at the Federal Nuclear Center in the western city of Sarov — formerly one of the Soviet Union’s closed-off cities, unmarked on historic maps and shrouded in secrecy.
As one of the Soviet “closed administrative territorial entities,” Sarov was then known as Arzamas-16, and was the center of research and production for the first Soviet atomic bomb and hydrogen bomb under Joseph Stalin. Special permits are still required today for ordinary Russians to visit it.
With such a stellar off-grid history, you’d think the Bitcoin-hungry nuclear engineers might have suspected that connecting the site’s supercomputer — a 1 petaflop titan with a capacity for 1,000 trillion calculations per second — to the internet might draw just a little attention.
As soon as the engineers tried to bring it online, the security department was alerted and was able to foil the scientists, who were peremptorily handed over to the Federal Security Service (FSB).
Tatiana Zalesskaya, the head of the press service for the research institute, told the Interfax news agency that that the attempt was a “technically hopeless and criminally punishable offense.”
A criminal case was reportedly duly opened against them.
Contentiously, it has been alleged that the radioactive polonium-210 used to kill ex-FSB agent Alexander Litvinenko in London in 2006 was produced in Sarov, which houses a plant that is said to be the “world’s only commercial producer of the substance,” according to evidence presented before a court in the United Kingdom.
Sarov’s rogue scientists are not the only ones to have thought of using former Soviet military spaces for crypto mining. The Ice Rock Mining firm has plans to — legally — set up mining operations in a former Soviet bunker located in a cave in Almaty, Kazakhstan.
Caught in the headlights: Thai actor “Boom” arrested on set for alleged crypto fraud family affair
This summer, reports emerged tied to the story of a Finnish millionaire allegedly fooled by a Thai crypto investment scam — to the tune of Bitcoin worth 797 million baht ($24.62 million) at the time.
According to the Thai Crime Suppression Division (CSD), the 22-year-old Finn, identified as Aarni Otava Saarimaa, claimed he had been lured into investing his Bitcoin into several companies, a casino and the gambling-focused crypto token Dragon Coin.
Saarima’s business partner, the Thai businessman Chonnikan Kaeosali, reportedly first approached the CSD in January this year, outlining how the pair had been drawn to purchase shares in three firms — Expay Group, NX Chain Inc. and DNA 2002 Plc — that were purported to be investors in Dragon Coin. He said they had first been approached in connection with the affair by a local Thai group back in June 2017.
The fraudsters are said to have taken their would-be victims around a Macau-based casino where they claimed the gambling-focused token would soon be used. Saarima subsequently transferred his crypto but never saw returns, shareholder papers nor any proof of investment in Dragon Coin.
As the CSD’s investigations unfolded, they identified a group of nine suspects — three of whom were revealed to be a group of siblings from the Jaravijit family. The suspects are said to have swiftly sold the crypto for local fiat currency, dispersing the spoils between various bank accounts.
It was the arrest of one of the siblings this summer — a dapper 27-year-old soap-opera star known as Jiratpisit “Boom” Jaravijit — that first brought the case to public light.  
On Aug. 9, Boom was taken into custody on money laundering charges in the midst of filming at the Major Cineplex Ratchayothin in Bangkok’s Chatuchak district. Local media noted it was the day after the star’s birthday.
It was alleged that the actor had colluded with his siblings to launder the swindled money, after investigations revealed they had bought 14 plots of land worth 176 million baht ($5.44 million).
Boom’s brother, Prinya Jaravijit, is said to have been the ringleader of the scheme, having reportedly received a tip-off from a Thai banker about the wealthy Finn and then setting the heist in motion. Prinya has reportedly fled to South Korea, while Boom’s sister is said to have made contact with the CSD to turn herself in.
The CSD has sought arrest warrants for a further six suspects and frozen a total of 51 different bank accounts in addition to the siblings’ land.
Boom was temporarily released on a 2 million baht ($61,827) bail bond on the condition that he would not leave the country, having argued that his arrest on set in a public place was ample proof he had not been intending to flee.
Earlier this month, another Jaravijit sibling turned himself in to deny the fraud charges, while police met two further suspects: Prasit Srisuwan, a well-known stock trader, and Chakris Ahmad.
Boom’s parents, Mr. Suwit and Ms. Lertchatkamol, have also been questioned after police traced that 90 million baht ($2.78 million) had been transferred to their accounts. Both have denied involvement.
India: Former ruling party lawmaker nabbed “fast asleep” on a construction site
As news of the many-tentacled Bitconnect investment heist continues to unfold globally, recent developments have unearthed a web of kidnappings and extortions allegedly tied to Bitconnect investors in the wealthy state of Gujarat.  
Earlier this month, a former Member of the Legislative Assembly (MLA) for India’s ruling Bharatiya Janata Party (BJP) was remanded in custody for allegedly conspiring with local police to kidnap and extort Bitcoin from a Gujarati Bitconnect investor.
In February, a Surat-based builder by the name of Shailesh Bhatt had charged into the Home Minister’s office in the Indian state of Gujarat, alleging that 10 district cops had kidnapped and extorted him for 176 BTC, worth 9.45 crore* rupee (around $1.31 million).
*A crore rupee denotes 10 million and is equal to 100 lakh rupee in the Indian numbering system (1 lakh rupee denotes 100,000)
The band of 10 was alleged to have comprised not only rank-and-file constables but even a superintendent and a local Crime Branch Inspector.
Bhatt, who is said to have been known for his penchant for Bitcoin trading, claimed he had been duped by one of his business aides, Kirit Paladiya, into thinking that the authorities were keeping him under close watch for his crypto dealings.
He alleged he had been lured by a phone call from his local Central Bureau of Investigation (CBI), where he was allegedly beaten in a “torture room” and asked by a CBI official to pay a cash ransom.
Two days later, he claimed he was kidnapped during a meeting with his aide Paladiya near a fuel station, where he was whisked off to a local farm house. There, he said, “[the police officers] beat me up inside a room and threatened to kill me […] if I did not hand over my Bitcoins.”
Bhatt then accused Paladiya of double-crossing him in cahoots with his influential uncle, the former BJP MLA Nalin Kotadiya, who he claimed had been the one who pressured him into paying the ransom.
Bhatt has himself been subsequently accused of being a wolf in sheep’s clothing. He has become embroiled in a case pertaining to an alleged earlier extortion of a staggering 1.55 billion rupee ($215 million) worth of crypto and cash at gunpoint — including around 2,400 BTC — from two colleagues of well-known local Bitconnect promoter Satish Kumbhani.  
However, Indian authorities nonetheless believed there is some weight behind the accusations against the former lawmaker Kotadiya, first issuing an arrest warrant against him in mid-May.
Kotadiya has repeatedly hit back against the allegations, notably via a WhatsApp video — reposted on Youtube in late April — in which, attired in pink, he claimed he had duly informed authorities about the Bitcoin heist and attributed the full blame for the extortion scandal and conspiracy to Bhatt.
Moreover, he threatened to leak evidence that would implicate even more local politicians in the scandal, saying that Bhatt was protecting them and therefore attempting to “fix him” in the case.
Nonetheless, by mid-June, a local sessions judge declared Kotadiya a “proclaimed offender” (absconder) and demanded he appear before the court within 30 days.
As Kotadiya continued to elude the clutches of law enforcement throughout summer, he was finally nabbed after four months in hiding on Sept. 10. He was reportedly found “fast asleep” on the second floor of a railway quarters still under construction, after a local contractor gave police the golden tip-off.
“When we [eventually] found him, he was sleeping on a mattress and there was just an earthen pot of water in the room.”
As Cointelegraph has reported, Kotadiya’s alleged embroilment has been a political gold mine for the opposition party, the Indian National Congress (INC), who allege that further members of the ruling BJP have used the Bitconnect scam to launder undeclared “black” money.
“The finger of suspicion of this massive scam of illegal cryptocurrency directly points to several top Bharatiya Janata Party leaders and a mastermind — an absconding BJP leader and former MLA Nalin Kotadiya […] Who are the top BJP leaders against whom Kotadiya has damning evidence? We demand an impartial Supreme Court-monitored judicial investigation.”
As of press time, the time of Kotadiya’s custody is up, yet the alleged evidence he claims to wield is yet to have been made public.
Iceland’s Bitcoin miner heist: A high-gliding fugitive and suspect hardware in Tianjin
This year, what has been described as one of Iceland’s “largest criminal cases in history” has seen an outlandish set of twists and turns, leading all the way to the northern Chinese city of Tianjin.
In February, news broke of a series of unprecedented thefts, involving powerful computing equipment that had been stolen in a “highly organized” Bitcoin mining heist. Three burglaries were reported to have taken place in December 2017 and a fourth in January.
The burglars had allegedly swiped 20 million krónur (around $180,000) worth of equipment — 600 graphics cards, 100 power supplies, 100 motherboards, 100 memory discs and 100 CPU processors — from a house in the municipality of Reykjanesbær.
They had also allegedly broken into data centers across both Reykjanesbær and Borgarbyggð, with a total of 600 computers stolen from both places, worth 200 million krónur (almost $2 million). The whereabouts of the equipment, including the computers — said to have been used for Bitcoin mining — remained untraceable, even as authorities monitored energy consumption for suspicious increases.
Police are said to have initially arrested eleven suspects — two of which were ordered to remain in custody, after the Icelandic IT firm Advania produced incriminating surveillance footage taken at the data center in Reykjanesbær. The authorities soon recovered most of the stolen equipment, yet the 600 computers remained elusive. Both suspects were reported in local media as being “uncooperative.”
Then, on April 17, one of the detainees escaped at 1 a.m. from his custody in an “open” (low-security) prison, just a week before authorities were due to move forward with an indictment.
The fugitive, Sindri Thor Stefánsson, fled the country on a passport bearing another man’s name, boarding a passenger plane to Sweden that was embarrassingly revealed to have been carrying Iceland’s prime minister.
Stefánsson subsequently released a statement claiming he had been “legally allowed” to travel on the day he boarded the plane to Stockholm, as his custody ruling expired April 16 and a judge had requested 24 hours to consider its renewal. This, according, to him, left a brief interim during which the warrant for his custody was legally invalid.
He vowed to return home “soon,” telling reporters he would be challenging his two-and-a-half-month custody at the European Court of Human Rights.
Days later, he was arrested in central Amsterdam, after a photo published on Instagram with the hashtag #teamsindri allegedly gave him away, according to media outlet Iceland Monitor. Police at the time did not confirm this was the case.
Allegedly incriminating Instagram snap of Stefánsson in Amsterdam: Source: Iceland Monitor
Despite #teamsindri reportedly briefly trending across Icelandic Twitter, the case last month came to a head when a judge charged Stefánsson — alongside six others — with the theft of the 600 computers. While Stefánsson’s charge has been confirmed as theft, it remains unclear what role the other six defendants are charged with as having in the incident.
Just days after Stefansson’s Amsterdam stint, police in the northern Chinese city of Tianjin seized 600 computers used to mine Bitcoin, after abnormal electricity usage attracted the attention of the local power grid operator. Local media outlets reported the case as being the “largest power theft case in recent years,” but it notably also drew the attention of authorities back in Iceland, who suspected the exact number match of suspect hardware was more than just an uncanny coincidence.
Icelandic police subsequently reached out to Chinese authorities to try to link the two cases, yet no results have been reported since then.
“One of the best out there”: A teenage SIM-swapping crypto hacker with a taste for luxury cars
Last month, Californian police nabbed a hacker who allegedly stole Bitcoin worth over $1 million via a series of so-called ‘SIM-swapping’ heists — also known as ‘port-out scams.’ The 19-year-old suspect, identified as Xzavyer Narvaez, is said to have specialized in stealing cell phone numbers and using them to hijack online financial and social media accounts tied to those numbers.
A SIM-swap attack results in the victim suddenly losing all service, with any incoming calls or text messages redirected to the attacker’s device. As many firms use automated messages or phone calls to handle customer authentication, SIM swaps can be a goldmine in deft hands.  
Prosecutors allege that Narvaez used his ill-gotten crypto proceeds to purchase luxury goods, including a $200,000 high-performance McLaren sport car, which were tracked through records obtained from Bitcoin payment provider BitPay.
According to cybercrime blog Krebs on Security, the investigators interviewed several alleged victims of Narvaez, one of whom claimed he was robbed of $150,000 in crypto after his SIM was hijacked.
Between March and June 2018 alone, Narvaez’s account on crypto exchange Bittrex reportedly saw a flow of a staggering 157 BTC. He subsequently faced charges on four counts of using personal identifying information without authorization; four counts of altering and damaging computer data with intent to defraud or obtain money, or other value; and grand theft of personal property of a value over $950,000, according to court documents.
VICE’s parallel investigations traced Narvaez’s impressive “credentials” in the SIM-swapping underworld, with one source telling the magazine that he was considered “one of the best […] out there.” VICE’s source provided screenshots of Narvaez’s former Instagram account, which allegedly featured euphoric photos of his fresh, 2018 snow white McLaren, accompanied by the caption “live fast, die young.”
Narvaez is said to have come under the radar of law enforcement following the arrest of one Joel Ortiz, described as “a gifted 20-year-old college student from Boston” who was charged this July with using SIM swaps to swipe over $5 million in crypto from 40 different victims.
A redacted “statement of facts” in the case obtained by Krebs revealed that records obtained from Google had traced that a cellular device used by Ortiz to commit SIM swaps had at one point been used to access the Google account identified as [email protected].
In an unrelated case this July, Florida police reportedly arrested a 25-year-old, Ricky Joseph Handschumacher, who was accused of being part of a multi-state, cyber-fraud SIM-swapping ring that operated over the course of two years.
The gang of nine — scattered across different states — was initially tracked in February, when a “worried mom” overheard her son talking on the phone impersonating a telecoms firm employee. The group is alleged to have “routinely paid” employees at cell phone companies to assist in their schemes and to even have discussed a plan to hack accounts belonging to the CEO of the high-profile Gemini Trust company — namely those of Bitcoin billionaire Tyler Winklevoss.
Handschumacher himself posted multiple flashy purchases — including a pickup truck, multiple all-terrain vehicles and jet skis — on his public Facebook profile. Subpoenas to Coinbase revealed he had sold 82 BTC through his account, “virtually all” of which were not purchased on the platform.
As law enforcement closed in on this host of spry and unabashed millennial SIM swappers, in August, a U.S. investor filed a $224 million lawsuit, taking on telecoms giant AT&T. Michael Terpin accused the firm of alleged negligence, claiming that $24 million in crypto was stolen via a “digital identity theft” of his cell phone account.
His complaint alleged that:
“What AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner.”
“Fake news”: OKEx CEO “detained” for alleged fraud
The most recent high-profile, crypto-related “detention” involves OKEx CEO Star Xu, who was the subject of a host of conflicting media reports — and even one viral dumpling-related anecdote — following his sudden tête-à-tête with Chinese authorities this month.
Xu has robustly hit back at rumors that fraud was the reason for his purported ‘arrest,’ after local media reported that he had faced problems at his hotel from a group of investors in WFEE Coin, a blockchain WiFi sharing project they claimed Xu held shares in.
The allegedly defrauded victims had reportedly contacted Shanghai police, who “summoned” the CEO to a police station on Sept. 10 to “put [him] through a round of questioning to get to the bottom of the rumors,” as tech news source ZeroHedge wrote at the time.
A photograph of a police report about Xu on local news outlet Sina Technology appeared to confirm that the police had been notified at 5:59 p.m. on Sept. 10.
Image of police report allegedly involving Star Xu’s detention. Source: Sina Technology
At the same time, alternative sources in China claimed the investors were in fact traders incensed by system failures on the OKEx exchange itself. As Bitcoin (BTC) tumbled on Sept. 5, OKEx platform crashes are alleged to have left users unable to close or otherwise salvage their positions, with losses all the more acute in the case of leveraged trades.
Cointelegraph’s own Chinese sources have since thrown some degree of light on what had spiralled into a sordid media affair, substantiating suspicions that much of the hearsay was indeed “fake news.”
The sources have emphasized that Xu was the one who approached the police of his own accord. In their account, on Sept. 10, Xu had arrived at the Shanghai office of OK Group to meet with customers and conduct other business affairs. He had also — incidentally — made an appointment at the office to meet with a prospective personal fitness coach.
There, the first troubles with the disgruntled investors are said to have begun — who are thought to have been a mix of OKCoin and WFEE Coin investors. Some ambiguity remains as to their exact identity — and whether they were indeed railing against problems tied to the OKEx exchange or held Xu responsible for the vicissitudes of the WFEE token, or a mix of both.
Having gotten wind of Xu’s visit to Shanghai, the aggrieved group is alleged to have been responsible for vandalizing the sign at the city’s OK Group office, as appears to be shown in the following photograph:
Photo showing the apparent vandalization of OK Group’s entrance sign at the Shanghai office
An alarmed Xu is said to have headed back to his hotel, telling his prospective coach to make her way there as well, so as to resume their meeting. The investors are alleged to have then followed the woman’s tracks, suspecting she would lead them to Xu. There, they are alleged to have knocked on the door of the CEO’s room, threatening him.
After four tense hours, Xu is said to have alerted the police. The investors are again alleged to have followed his trail, whereupon Xu called a group of “henchmen” to join him at the police station. At this point, the investors are said to have taken fright and approached the authorities themselves.
In an interview published soon after his release, Xu confirmed he had been held by Shanghai police, seeming to imply he had made the contact on his own initiative:
“In Shanghai, someone reported that I was defrauding. I went to the police station to explain the situation and proved to the police that I did not swindle.”
On Twitter, OKEx COO Cheung also stated that Xu had been encircled by a group in Shanghai, although in his account, the police are said to have arrived to the scene themselves and moved all parties involved to the station. Cheung alleged that:
“While Star was invited to help with the investigation and those people was detained, they raised a fraud complaint against Star. Star stayed to clarify and then left afterward.”
According to Cointelegraph’s sources, no one was witness to Xu’s departure from the station, and it remains unclear how long he spent there.
Xu has stated that while it is “normal” for citizens to exercise their right to make such allegations, he has equally fulfilled his “duty” as a citizen by cooperating with the authorities. In terms of his alleged responsibility for system “abnormalities” on the exchange, Xu has responded that:
“I am not a legal person of OKEx, nor am I a shareholder or a director.”
This point was echoed in Cheung’s parallel tweets, in which the COO stressed that “Star is the founder of OK Group, [and] although we are good friends, he does not run OKEx.” Cheung has added that he felt “disappointed that the story was twisted before the truth came out.”
Local news outlet Jiemian has meanwhile reported that seven out of a total of 300 investors who claimed to have “suffered heavy losses” on the OKEx exchange have since reached a form of settlement with Xu. Notably, repeated system failures are alleged to have caused a total economic loss of “around 300 million yuan.”
In his post-release interview, Xu stressed that while leveraged trading is a “neutral tool in itself,” it is “not suitable for ordinary investors” as the potential for accelerated net profits and losses requires “professional knowledge” to manage the risks involved.
As Jiemian noted, while OKEx offers investors the opportunity to add as much as 20 times leverage to their contracts, unlike traditional futures trading platforms, the exchange operates without regulatory oversight.
As for the WFEE connection, OK Blockchain Capital (OKBC) — a strategic partner of OKEx and a subsidiary of OK Group — has publicly refuted the allegations that Xu had any shares in the project, tweeting on Sept. 12 that:
“The rumor that OK Group founder Star Xu [is] a shareholder of WFEE is fake. Mr. Xu has no equity relationship with WFEE and its company.”
OKBC has further clarified its own relationship with WFEE, stating that “OKBC is one of the institutional investors of WFEE.” WFEE reportedly “acquired OKBC’s and several other capitals’ investments […] when it was still the prime partner of WeShare WiFi — a global leading WiFi sharing company.” The firm added that it had not been notified of subsequent changes to the WFEE white paper, as OKBC “neither participates in” WFEE’s operations, nor in its “results.”
OKBC has also pointed to the fact that OKEx had warned its users of the potential risks posed by WFEE in August and included WFEE in their first “Token Delisting/Hiding Guideline [sic].”
So… what of the dumplings?
Amid the flurry of “twisted” media reports, one viral anecdote alleged that the band of investors had brought a hungry — and short-of-cash — Xu some sustenance, namely dumplings, as he underwent questioning at the police station. The story, despite its oddity, appears to have had some traction. Cointelegraph’s Chinese sources, for their part, dismissed it out-of-hand as an unthinkable and breathless piece of confected hearsay.
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Arrests Making Headlines Across the Globe
Gone are the days when shady dealings in crypto were perceived as immune to the clutches of law enforcement.
Illicit crypto proceeds can be shuttled between wallet addresses at the click of a mouse, and their obfuscation behind the multiple strings of numbers and letters of wallet addresses can create a dizzying — if not impenetrable — cryptographic maze for authorities to navigate.
But the criminals themselves present a more concrete target, and as they interface with everything from crafty code to unwieldy hardware to ‘traditional’ firearms, there has been some success in 2018 in nabbing some of the year’s darkest — and most imaginative — offenders.
From soap actors to former lawmakers, Cointelegraph takes stock of some of the most illustrious arrests of the figures behind crypto’s high crimes and misdemeanours this year.
Foiled supercomputer Bitcoin heist in Russian nuclear no-man’s land
In February, Russian security agents scored a coup against a group of nuclear engineers at a top-secret nuclear warhead facility who tried to use one of the country’s most powerful supercomputers to mine Bitcoin (BTC).
The engineers worked at the Federal Nuclear Center in the western city of Sarov — formerly one of the Soviet Union’s closed-off cities, unmarked on historic maps and shrouded in secrecy.
As one of the Soviet “closed administrative territorial entities,” Sarov was then known as Arzamas-16, and was the center of research and production for the first Soviet atomic bomb and hydrogen bomb under Joseph Stalin. Special permits are still required today for ordinary Russians to visit it.
With such a stellar off-grid history, you’d think the Bitcoin-hungry nuclear engineers might have suspected that connecting the site’s supercomputer — a 1 petaflop titan with a capacity for 1,000 trillion calculations per second — to the internet might draw just a little attention.
As soon as the engineers tried to bring it online, the security department was alerted and was able to foil the scientists, who were peremptorily handed over to the Federal Security Service (FSB).
Tatiana Zalesskaya, the head of the press service for the research institute, told the Interfax news agency that that the attempt was a “technically hopeless and criminally punishable offense.”
A criminal case was reportedly duly opened against them.
Contentiously, it has been alleged that the radioactive polonium-210 used to kill ex-FSB agent Alexander Litvinenko in London in 2006 was produced in Sarov, which houses a plant that is said to be the “world’s only commercial producer of the substance,” according to evidence presented before a court in the United Kingdom.
Sarov’s rogue scientists are not the only ones to have thought of using former Soviet military spaces for crypto mining. The Ice Rock Mining firm has plans to — legally — set up mining operations in a former Soviet bunker located in a cave in Almaty, Kazakhstan.
Caught in the headlights: Thai actor “Boom” arrested on set for alleged crypto fraud family affair
This summer, reports emerged tied to the story of a Finnish millionaire allegedly fooled by a Thai crypto investment scam — to the tune of Bitcoin worth 797 million baht ($24.62 million) at the time.
According to the Thai Crime Suppression Division (CSD), the 22-year-old Finn, identified as Aarni Otava Saarimaa, claimed he had been lured into investing his Bitcoin into several companies, a casino and the gambling-focused crypto token Dragon Coin.
Saarima’s business partner, the Thai businessman Chonnikan Kaeosali, reportedly first approached the CSD in January this year, outlining how the pair had been drawn to purchase shares in three firms — Expay Group, NX Chain Inc. and DNA 2002 Plc — that were purported to be investors in Dragon Coin. He said they had first been approached in connection with the affair by a local Thai group back in June 2017.
The fraudsters are said to have taken their would-be victims around a Macau-based casino where they claimed the gambling-focused token would soon be used. Saarima subsequently transferred his crypto but never saw returns, shareholder papers nor any proof of investment in Dragon Coin.
As the CSD’s investigations unfolded, they identified a group of nine suspects — three of whom were revealed to be a group of siblings from the Jaravijit family. The suspects are said to have swiftly sold the crypto for local fiat currency, dispersing the spoils between various bank accounts.
It was the arrest of one of the siblings this summer — a dapper 27-year-old soap-opera star known as Jiratpisit “Boom” Jaravijit — that first brought the case to public light.  
On Aug. 9, Boom was taken into custody on money laundering charges in the midst of filming at the Major Cineplex Ratchayothin in Bangkok’s Chatuchak district. Local media noted it was the day after the star’s birthday.
It was alleged that the actor had colluded with his siblings to launder the swindled money, after investigations revealed they had bought 14 plots of land worth 176 million baht ($5.44 million).
Boom’s brother, Prinya Jaravijit, is said to have been the ringleader of the scheme, having reportedly received a tip-off from a Thai banker about the wealthy Finn and then setting the heist in motion. Prinya has reportedly fled to South Korea, while Boom’s sister is said to have made contact with the CSD to turn herself in.
The CSD has sought arrest warrants for a further six suspects and frozen a total of 51 different bank accounts in addition to the siblings’ land.
Boom was temporarily released on a 2 million baht ($61,827) bail bond on the condition that he would not leave the country, having argued that his arrest on set in a public place was ample proof he had not been intending to flee.
Earlier this month, another Jaravijit sibling turned himself in to deny the fraud charges, while police met two further suspects: Prasit Srisuwan, a well-known stock trader, and Chakris Ahmad.
Boom’s parents, Mr. Suwit and Ms. Lertchatkamol, have also been questioned after police traced that 90 million baht ($2.78 million) had been transferred to their accounts. Both have denied involvement.
India: Former ruling party lawmaker nabbed “fast asleep” on a construction site
As news of the many-tentacled Bitconnect investment heist continues to unfold globally, recent developments have unearthed a web of kidnappings and extortions allegedly tied to Bitconnect investors in the wealthy state of Gujarat.  
Earlier this month, a former Member of the Legislative Assembly (MLA) for India’s ruling Bharatiya Janata Party (BJP) was remanded in custody for allegedly conspiring with local police to kidnap and extort Bitcoin from a Gujarati Bitconnect investor.
In February, a Surat-based builder by the name of Shailesh Bhatt had charged into the Home Minister’s office in the Indian state of Gujarat, alleging that 10 district cops had kidnapped and extorted him for 176 BTC, worth 9.45 crore* rupee (around $1.31 million).
*A crore rupee denotes 10 million and is equal to 100 lakh rupee in the Indian numbering system (1 lakh rupee denotes 100,000)
The band of 10 was alleged to have comprised not only rank-and-file constables but even a superintendent and a local Crime Branch Inspector.
Bhatt, who is said to have been known for his penchant for Bitcoin trading, claimed he had been duped by one of his business aides, Kirit Paladiya, into thinking that the authorities were keeping him under close watch for his crypto dealings.
He alleged he had been lured by a phone call from his local Central Bureau of Investigation (CBI), where he was allegedly beaten in a “torture room” and asked by a CBI official to pay a cash ransom.
Two days later, he claimed he was kidnapped during a meeting with his aide Paladiya near a fuel station, where he was whisked off to a local farm house. There, he said, “[the police officers] beat me up inside a room and threatened to kill me […] if I did not hand over my Bitcoins.”
Bhatt then accused Paladiya of double-crossing him in cahoots with his influential uncle, the former BJP MLA Nalin Kotadiya, who he claimed had been the one who pressured him into paying the ransom.
Bhatt has himself been subsequently accused of being a wolf in sheep’s clothing. He has become embroiled in a case pertaining to an alleged earlier extortion of a staggering 1.55 billion rupee ($215 million) worth of crypto and cash at gunpoint — including around 2,400 BTC — from two colleagues of well-known local Bitconnect promoter Satish Kumbhani.  
However, Indian authorities nonetheless believed there is some weight behind the accusations against the former lawmaker Kotadiya, first issuing an arrest warrant against him in mid-May.
Kotadiya has repeatedly hit back against the allegations, notably via a WhatsApp video — reposted on Youtube in late April — in which, attired in pink, he claimed he had duly informed authorities about the Bitcoin heist and attributed the full blame for the extortion scandal and conspiracy to Bhatt.
Moreover, he threatened to leak evidence that would implicate even more local politicians in the scandal, saying that Bhatt was protecting them and therefore attempting to “fix him” in the case.
Nonetheless, by mid-June, a local sessions judge declared Kotadiya a “proclaimed offender” (absconder) and demanded he appear before the court within 30 days.
As Kotadiya continued to elude the clutches of law enforcement throughout summer, he was finally nabbed after four months in hiding on Sept. 10. He was reportedly found “fast asleep” on the second floor of a railway quarters still under construction, after a local contractor gave police the golden tip-off.
“When we [eventually] found him, he was sleeping on a mattress and there was just an earthen pot of water in the room.”
As Cointelegraph has reported, Kotadiya’s alleged embroilment has been a political gold mine for the opposition party, the Indian National Congress (INC), who allege that further members of the ruling BJP have used the Bitconnect scam to launder undeclared “black” money.
“The finger of suspicion of this massive scam of illegal cryptocurrency directly points to several top Bharatiya Janata Party leaders and a mastermind — an absconding BJP leader and former MLA Nalin Kotadiya […] Who are the top BJP leaders against whom Kotadiya has damning evidence? We demand an impartial Supreme Court-monitored judicial investigation.”
As of press time, the time of Kotadiya’s custody is up, yet the alleged evidence he claims to wield is yet to have been made public.
Iceland’s Bitcoin miner heist: A high-gliding fugitive and suspect hardware in Tianjin
This year, what has been described as one of Iceland’s “largest criminal cases in history” has seen an outlandish set of twists and turns, leading all the way to the northern Chinese city of Tianjin.
In February, news broke of a series of unprecedented thefts, involving powerful computing equipment that had been stolen in a “highly organized” Bitcoin mining heist. Three burglaries were reported to have taken place in December 2017 and a fourth in January.
The burglars had allegedly swiped 20 million krónur (around $180,000) worth of equipment — 600 graphics cards, 100 power supplies, 100 motherboards, 100 memory discs and 100 CPU processors — from a house in the municipality of Reykjanesbær.
They had also allegedly broken into data centers across both Reykjanesbær and Borgarbyggð, with a total of 600 computers stolen from both places, worth 200 million krónur (almost $2 million). The whereabouts of the equipment, including the computers — said to have been used for Bitcoin mining — remained untraceable, even as authorities monitored energy consumption for suspicious increases.
Police are said to have initially arrested eleven suspects — two of which were ordered to remain in custody, after the Icelandic IT firm Advania produced incriminating surveillance footage taken at the data center in Reykjanesbær. The authorities soon recovered most of the stolen equipment, yet the 600 computers remained elusive. Both suspects were reported in local media as being “uncooperative.”
Then, on April 17, one of the detainees escaped at 1 a.m. from his custody in an “open” (low-security) prison, just a week before authorities were due to move forward with an indictment.
The fugitive, Sindri Thor Stefánsson, fled the country on a passport bearing another man’s name, boarding a passenger plane to Sweden that was embarrassingly revealed to have been carrying Iceland’s prime minister.
Stefánsson subsequently released a statement claiming he had been “legally allowed” to travel on the day he boarded the plane to Stockholm, as his custody ruling expired April 16 and a judge had requested 24 hours to consider its renewal. This, according, to him, left a brief interim during which the warrant for his custody was legally invalid.
He vowed to return home “soon,” telling reporters he would be challenging his two-and-a-half-month custody at the European Court of Human Rights.
Days later, he was arrested in central Amsterdam, after a photo published on Instagram with the hashtag #teamsindri allegedly gave him away, according to media outlet Iceland Monitor. Police at the time did not confirm this was the case.
Allegedly incriminating Instagram snap of Stefánsson in Amsterdam: Source: Iceland Monitor
Despite #teamsindri reportedly briefly trending across Icelandic Twitter, the case last month came to a head when a judge charged Stefánsson — alongside six others — with the theft of the 600 computers. While Stefánsson’s charge has been confirmed as theft, it remains unclear what role the other six defendants are charged with as having in the incident.
Just days after Stefansson’s Amsterdam stint, police in the northern Chinese city of Tianjin seized 600 computers used to mine Bitcoin, after abnormal electricity usage attracted the attention of the local power grid operator. Local media outlets reported the case as being the “largest power theft case in recent years,” but it notably also drew the attention of authorities back in Iceland, who suspected the exact number match of suspect hardware was more than just an uncanny coincidence.
Icelandic police subsequently reached out to Chinese authorities to try to link the two cases, yet no results have been reported since then.
“One of the best out there”: A teenage SIM-swapping crypto hacker with a taste for luxury cars
Last month, Californian police nabbed a hacker who allegedly stole Bitcoin worth over $1 million via a series of so-called ‘SIM-swapping’ heists — also known as ‘port-out scams.’ The 19-year-old suspect, identified as Xzavyer Narvaez, is said to have specialized in stealing cell phone numbers and using them to hijack online financial and social media accounts tied to those numbers.
A SIM-swap attack results in the victim suddenly losing all service, with any incoming calls or text messages redirected to the attacker’s device. As many firms use automated messages or phone calls to handle customer authentication, SIM swaps can be a goldmine in deft hands.  
Prosecutors allege that Narvaez used his ill-gotten crypto proceeds to purchase luxury goods, including a $200,000 high-performance McLaren sport car, which were tracked through records obtained from Bitcoin payment provider BitPay.
According to cybercrime blog Krebs on Security, the investigators interviewed several alleged victims of Narvaez, one of whom claimed he was robbed of $150,000 in crypto after his SIM was hijacked.
Between March and June 2018 alone, Narvaez’s account on crypto exchange Bittrex reportedly saw a flow of a staggering 157 BTC. He subsequently faced charges on four counts of using personal identifying information without authorization; four counts of altering and damaging computer data with intent to defraud or obtain money, or other value; and grand theft of personal property of a value over $950,000, according to court documents.
VICE’s parallel investigations traced Narvaez’s impressive “credentials” in the SIM-swapping underworld, with one source telling the magazine that he was considered “one of the best […] out there.” VICE’s source provided screenshots of Narvaez’s former Instagram account, which allegedly featured euphoric photos of his fresh, 2018 snow white McLaren, accompanied by the caption “live fast, die young.”
Narvaez is said to have come under the radar of law enforcement following the arrest of one Joel Ortiz, described as “a gifted 20-year-old college student from Boston” who was charged this July with using SIM swaps to swipe over $5 million in crypto from 40 different victims.
A redacted “statement of facts” in the case obtained by Krebs revealed that records obtained from Google had traced that a cellular device used by Ortiz to commit SIM swaps had at one point been used to access the Google account identified as [email protected].
In an unrelated case this July, Florida police reportedly arrested a 25-year-old, Ricky Joseph Handschumacher, who was accused of being part of a multi-state, cyber-fraud SIM-swapping ring that operated over the course of two years.
The gang of nine — scattered across different states — was initially tracked in February, when a “worried mom” overheard her son talking on the phone impersonating a telecoms firm employee. The group is alleged to have “routinely paid” employees at cell phone companies to assist in their schemes and to even have discussed a plan to hack accounts belonging to the CEO of the high-profile Gemini Trust company — namely those of Bitcoin billionaire Tyler Winklevoss.
Handschumacher himself posted multiple flashy purchases — including a pickup truck, multiple all-terrain vehicles and jet skis — on his public Facebook profile. Subpoenas to Coinbase revealed he had sold 82 BTC through his account, “virtually all” of which were not purchased on the platform.
As law enforcement closed in on this host of spry and unabashed millennial SIM swappers, in August, a U.S. investor filed a $224 million lawsuit, taking on telecoms giant AT&T. Michael Terpin accused the firm of alleged negligence, claiming that $24 million in crypto was stolen via a “digital identity theft” of his cell phone account.
His complaint alleged that:
“What AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner.”
“Fake news”: OKEx CEO “detained” for alleged fraud
The most recent high-profile, crypto-related “detention” involves OKEx CEO Star Xu, who was the subject of a host of conflicting media reports — and even one viral dumpling-related anecdote — following his sudden tête-à-tête with Chinese authorities this month.
Xu has robustly hit back at rumors that fraud was the reason for his purported ‘arrest,’ after local media reported that he had faced problems at his hotel from a group of investors in WFEE Coin, a blockchain WiFi sharing project they claimed Xu held shares in.
The allegedly defrauded victims had reportedly contacted Shanghai police, who “summoned” the CEO to a police station on Sept. 10 to “put [him] through a round of questioning to get to the bottom of the rumors,” as tech news source ZeroHedge wrote at the time.
A photograph of a police report about Xu on local news outlet Sina Technology appeared to confirm that the police had been notified at 5:59 p.m. on Sept. 10.
Image of police report allegedly involving Star Xu’s detention. Source: Sina Technology
At the same time, alternative sources in China claimed the investors were in fact traders incensed by system failures on the OKEx exchange itself. As Bitcoin (BTC) tumbled on Sept. 5, OKEx platform crashes are alleged to have left users unable to close or otherwise salvage their positions, with losses all the more acute in the case of leveraged trades.
Cointelegraph’s own Chinese sources have since thrown some degree of light on what had spiralled into a sordid media affair, substantiating suspicions that much of the hearsay was indeed “fake news.”
The sources have emphasized that Xu was the one who approached the police of his own accord. In their account, on Sept. 10, Xu had arrived at the Shanghai office of OK Group to meet with customers and conduct other business affairs. He had also — incidentally — made an appointment at the office to meet with a prospective personal fitness coach.
There, the first troubles with the disgruntled investors are said to have begun — who are thought to have been a mix of OKCoin and WFEE Coin investors. Some ambiguity remains as to their exact identity — and whether they were indeed railing against problems tied to the OKEx exchange or held Xu responsible for the vicissitudes of the WFEE token, or a mix of both.
Having gotten wind of Xu’s visit to Shanghai, the aggrieved group is alleged to have been responsible for vandalizing the sign at the city’s OK Group office, as appears to be shown in the following photograph:
Photo showing the apparent vandalization of OK Group’s entrance sign at the Shanghai office
An alarmed Xu is said to have headed back to his hotel, telling his prospective coach to make her way there as well, so as to resume their meeting. The investors are alleged to have then followed the woman’s tracks, suspecting she would lead them to Xu. There, they are alleged to have knocked on the door of the CEO’s room, threatening him.
After four tense hours, Xu is said to have alerted the police. The investors are again alleged to have followed his trail, whereupon Xu called a group of “henchmen” to join him at the police station. At this point, the investors are said to have taken fright and approached the authorities themselves.
In an interview published soon after his release, Xu confirmed he had been held by Shanghai police, seeming to imply he had made the contact on his own initiative:
“In Shanghai, someone reported that I was defrauding. I went to the police station to explain the situation and proved to the police that I did not swindle.”
On Twitter, OKEx COO Cheung also stated that Xu had been encircled by a group in Shanghai, although in his account, the police are said to have arrived to the scene themselves and moved all parties involved to the station. Cheung alleged that:
“While Star was invited to help with the investigation and those people was detained, they raised a fraud complaint against Star. Star stayed to clarify and then left afterward.”
According to Cointelegraph’s sources, no one was witness to Xu’s departure from the station, and it remains unclear how long he spent there.
Xu has stated that while it is “normal” for citizens to exercise their right to make such allegations, he has equally fulfilled his “duty” as a citizen by cooperating with the authorities. In terms of his alleged responsibility for system “abnormalities” on the exchange, Xu has responded that:
“I am not a legal person of OKEx, nor am I a shareholder or a director.”
This point was echoed in Cheung’s parallel tweets, in which the COO stressed that “Star is the founder of OK Group, [and] although we are good friends, he does not run OKEx.” Cheung has added that he felt “disappointed that the story was twisted before the truth came out.”
Local news outlet Jiemian has meanwhile reported that seven out of a total of 300 investors who claimed to have “suffered heavy losses” on the OKEx exchange have since reached a form of settlement with Xu. Notably, repeated system failures are alleged to have caused a total economic loss of “around 300 million yuan.”
In his post-release interview, Xu stressed that while leveraged trading is a “neutral tool in itself,” it is “not suitable for ordinary investors” as the potential for accelerated net profits and losses requires “professional knowledge” to manage the risks involved.
As Jiemian noted, while OKEx offers investors the opportunity to add as much as 20 times leverage to their contracts, unlike traditional futures trading platforms, the exchange operates without regulatory oversight.
As for the WFEE connection, OK Blockchain Capital (OKBC) — a strategic partner of OKEx and a subsidiary of OK Group — has publicly refuted the allegations that Xu had any shares in the project, tweeting on Sept. 12 that:
“The rumor that OK Group founder Star Xu [is] a shareholder of WFEE is fake. Mr. Xu has no equity relationship with WFEE and its company.”
OKBC has further clarified its own relationship with WFEE, stating that “OKBC is one of the institutional investors of WFEE.” WFEE reportedly “acquired OKBC’s and several other capitals’ investments […] when it was still the prime partner of WeShare WiFi — a global leading WiFi sharing company.” The firm added that it had not been notified of subsequent changes to the WFEE white paper, as OKBC “neither participates in” WFEE’s operations, nor in its “results.”
OKBC has also pointed to the fact that OKEx had warned its users of the potential risks posed by WFEE in August and included WFEE in their first “Token Delisting/Hiding Guideline [sic].”
So… what of the dumplings?
Amid the flurry of “twisted” media reports, one viral anecdote alleged that the band of investors had brought a hungry — and short-of-cash — Xu some sustenance, namely dumplings, as he underwent questioning at the police station. The story, despite its oddity, appears to have had some traction. Cointelegraph’s Chinese sources, for their part, dismissed it out-of-hand as an unthinkable and breathless piece of confected hearsay.
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Arrests Making Headlines Across the Globe
Gone are the days when shady dealings in crypto were perceived as immune to the clutches of law enforcement.
Illicit crypto proceeds can be shuttled between wallet addresses at the click of a mouse, and their obfuscation behind the multiple strings of numbers and letters of wallet addresses can create a dizzying — if not impenetrable — cryptographic maze for authorities to navigate.
But the criminals themselves present a more concrete target, and as they interface with everything from crafty code to unwieldy hardware to ‘traditional’ firearms, there has been some success in 2018 in nabbing some of the year’s darkest — and most imaginative — offenders.
From soap actors to former lawmakers, Cointelegraph takes stock of some of the most illustrious arrests of the figures behind crypto’s high crimes and misdemeanours this year.
Foiled supercomputer Bitcoin heist in Russian nuclear no-man’s land
In February, Russian security agents scored a coup against a group of nuclear engineers at a top-secret nuclear warhead facility who tried to use one of the country’s most powerful supercomputers to mine Bitcoin (BTC).
The engineers worked at the Federal Nuclear Center in the western city of Sarov — formerly one of the Soviet Union’s closed-off cities, unmarked on historic maps and shrouded in secrecy.
As one of the Soviet “closed administrative territorial entities,” Sarov was then known as Arzamas-16, and was the center of research and production for the first Soviet atomic bomb and hydrogen bomb under Joseph Stalin. Special permits are still required today for ordinary Russians to visit it.
With such a stellar off-grid history, you’d think the Bitcoin-hungry nuclear engineers might have suspected that connecting the site’s supercomputer — a 1 petaflop titan with a capacity for 1,000 trillion calculations per second — to the internet might draw just a little attention.
As soon as the engineers tried to bring it online, the security department was alerted and was able to foil the scientists, who were peremptorily handed over to the Federal Security Service (FSB).
Tatiana Zalesskaya, the head of the press service for the research institute, told the Interfax news agency that that the attempt was a “technically hopeless and criminally punishable offense.”
A criminal case was reportedly duly opened against them.
Contentiously, it has been alleged that the radioactive polonium-210 used to kill ex-FSB agent Alexander Litvinenko in London in 2006 was produced in Sarov, which houses a plant that is said to be the “world’s only commercial producer of the substance,” according to evidence presented before a court in the United Kingdom.
Sarov’s rogue scientists are not the only ones to have thought of using former Soviet military spaces for crypto mining. The Ice Rock Mining firm has plans to — legally — set up mining operations in a former Soviet bunker located in a cave in Almaty, Kazakhstan.
Caught in the headlights: Thai actor “Boom” arrested on set for alleged crypto fraud family affair
This summer, reports emerged tied to the story of a Finnish millionaire allegedly fooled by a Thai crypto investment scam — to the tune of Bitcoin worth 797 million baht ($24.62 million) at the time.
According to the Thai Crime Suppression Division (CSD), the 22-year-old Finn, identified as Aarni Otava Saarimaa, claimed he had been lured into investing his Bitcoin into several companies, a casino and the gambling-focused crypto token Dragon Coin.
Saarima’s business partner, the Thai businessman Chonnikan Kaeosali, reportedly first approached the CSD in January this year, outlining how the pair had been drawn to purchase shares in three firms — Expay Group, NX Chain Inc. and DNA 2002 Plc — that were purported to be investors in Dragon Coin. He said they had first been approached in connection with the affair by a local Thai group back in June 2017.
The fraudsters are said to have taken their would-be victims around a Macau-based casino where they claimed the gambling-focused token would soon be used. Saarima subsequently transferred his crypto but never saw returns, shareholder papers nor any proof of investment in Dragon Coin.
As the CSD’s investigations unfolded, they identified a group of nine suspects — three of whom were revealed to be a group of siblings from the Jaravijit family. The suspects are said to have swiftly sold the crypto for local fiat currency, dispersing the spoils between various bank accounts.
It was the arrest of one of the siblings this summer — a dapper 27-year-old soap-opera star known as Jiratpisit “Boom” Jaravijit — that first brought the case to public light.  
On Aug. 9, Boom was taken into custody on money laundering charges in the midst of filming at the Major Cineplex Ratchayothin in Bangkok’s Chatuchak district. Local media noted it was the day after the star’s birthday.
It was alleged that the actor had colluded with his siblings to launder the swindled money, after investigations revealed they had bought 14 plots of land worth 176 million baht ($5.44 million).
Boom’s brother, Prinya Jaravijit, is said to have been the ringleader of the scheme, having reportedly received a tip-off from a Thai banker about the wealthy Finn and then setting the heist in motion. Prinya has reportedly fled to South Korea, while Boom’s sister is said to have made contact with the CSD to turn herself in.
The CSD has sought arrest warrants for a further six suspects and frozen a total of 51 different bank accounts in addition to the siblings’ land.
Boom was temporarily released on a 2 million baht ($61,827) bail bond on the condition that he would not leave the country, having argued that his arrest on set in a public place was ample proof he had not been intending to flee.
Earlier this month, another Jaravijit sibling turned himself in to deny the fraud charges, while police met two further suspects: Prasit Srisuwan, a well-known stock trader, and Chakris Ahmad.
Boom’s parents, Mr. Suwit and Ms. Lertchatkamol, have also been questioned after police traced that 90 million baht ($2.78 million) had been transferred to their accounts. Both have denied involvement.
India: Former ruling party lawmaker nabbed “fast asleep” on a construction site
As news of the many-tentacled Bitconnect investment heist continues to unfold globally, recent developments have unearthed a web of kidnappings and extortions allegedly tied to Bitconnect investors in the wealthy state of Gujarat.  
Earlier this month, a former Member of the Legislative Assembly (MLA) for India’s ruling Bharatiya Janata Party (BJP) was remanded in custody for allegedly conspiring with local police to kidnap and extort Bitcoin from a Gujarati Bitconnect investor.
In February, a Surat-based builder by the name of Shailesh Bhatt had charged into the Home Minister’s office in the Indian state of Gujarat, alleging that 10 district cops had kidnapped and extorted him for 176 BTC, worth 9.45 crore* rupee (around $1.31 million).
*A crore rupee denotes 10 million and is equal to 100 lakh rupee in the Indian numbering system (1 lakh rupee denotes 100,000)
The band of 10 was alleged to have comprised not only rank-and-file constables but even a superintendent and a local Crime Branch Inspector.
Bhatt, who is said to have been known for his penchant for Bitcoin trading, claimed he had been duped by one of his business aides, Kirit Paladiya, into thinking that the authorities were keeping him under close watch for his crypto dealings.
He alleged he had been lured by a phone call from his local Central Bureau of Investigation (CBI), where he was allegedly beaten in a “torture room” and asked by a CBI official to pay a cash ransom.
Two days later, he claimed he was kidnapped during a meeting with his aide Paladiya near a fuel station, where he was whisked off to a local farm house. There, he said, “[the police officers] beat me up inside a room and threatened to kill me […] if I did not hand over my Bitcoins.”
Bhatt then accused Paladiya of double-crossing him in cahoots with his influential uncle, the former BJP MLA Nalin Kotadiya, who he claimed had been the one who pressured him into paying the ransom.
Bhatt has himself been subsequently accused of being a wolf in sheep’s clothing. He has become embroiled in a case pertaining to an alleged earlier extortion of a staggering 1.55 billion rupee ($215 million) worth of crypto and cash at gunpoint — including around 2,400 BTC — from two colleagues of well-known local Bitconnect promoter Satish Kumbhani.  
However, Indian authorities nonetheless believed there is some weight behind the accusations against the former lawmaker Kotadiya, first issuing an arrest warrant against him in mid-May.
Kotadiya has repeatedly hit back against the allegations, notably via a WhatsApp video — reposted on Youtube in late April — in which, attired in pink, he claimed he had duly informed authorities about the Bitcoin heist and attributed the full blame for the extortion scandal and conspiracy to Bhatt.
Moreover, he threatened to leak evidence that would implicate even more local politicians in the scandal, saying that Bhatt was protecting them and therefore attempting to “fix him” in the case.
Nonetheless, by mid-June, a local sessions judge declared Kotadiya a “proclaimed offender” (absconder) and demanded he appear before the court within 30 days.
As Kotadiya continued to elude the clutches of law enforcement throughout summer, he was finally nabbed after four months in hiding on Sept. 10. He was reportedly found “fast asleep” on the second floor of a railway quarters still under construction, after a local contractor gave police the golden tip-off.
“When we [eventually] found him, he was sleeping on a mattress and there was just an earthen pot of water in the room.”
As Cointelegraph has reported, Kotadiya’s alleged embroilment has been a political gold mine for the opposition party, the Indian National Congress (INC), who allege that further members of the ruling BJP have used the Bitconnect scam to launder undeclared “black” money.
“The finger of suspicion of this massive scam of illegal cryptocurrency directly points to several top Bharatiya Janata Party leaders and a mastermind — an absconding BJP leader and former MLA Nalin Kotadiya […] Who are the top BJP leaders against whom Kotadiya has damning evidence? We demand an impartial Supreme Court-monitored judicial investigation.”
As of press time, the time of Kotadiya’s custody is up, yet the alleged evidence he claims to wield is yet to have been made public.
Iceland’s Bitcoin miner heist: A high-gliding fugitive and suspect hardware in Tianjin
This year, what has been described as one of Iceland’s “largest criminal cases in history” has seen an outlandish set of twists and turns, leading all the way to the northern Chinese city of Tianjin.
In February, news broke of a series of unprecedented thefts, involving powerful computing equipment that had been stolen in a “highly organized” Bitcoin mining heist. Three burglaries were reported to have taken place in December 2017 and a fourth in January.
The burglars had allegedly swiped 20 million krónur (around $180,000) worth of equipment — 600 graphics cards, 100 power supplies, 100 motherboards, 100 memory discs and 100 CPU processors — from a house in the municipality of Reykjanesbær.
They had also allegedly broken into data centers across both Reykjanesbær and Borgarbyggð, with a total of 600 computers stolen from both places, worth 200 million krónur (almost $2 million). The whereabouts of the equipment, including the computers — said to have been used for Bitcoin mining — remained untraceable, even as authorities monitored energy consumption for suspicious increases.
Police are said to have initially arrested eleven suspects — two of which were ordered to remain in custody, after the Icelandic IT firm Advania produced incriminating surveillance footage taken at the data center in Reykjanesbær. The authorities soon recovered most of the stolen equipment, yet the 600 computers remained elusive. Both suspects were reported in local media as being “uncooperative.”
Then, on April 17, one of the detainees escaped at 1 a.m. from his custody in an “open” (low-security) prison, just a week before authorities were due to move forward with an indictment.
The fugitive, Sindri Thor Stefánsson, fled the country on a passport bearing another man’s name, boarding a passenger plane to Sweden that was embarrassingly revealed to have been carrying Iceland’s prime minister.
Stefánsson subsequently released a statement claiming he had been “legally allowed” to travel on the day he boarded the plane to Stockholm, as his custody ruling expired April 16 and a judge had requested 24 hours to consider its renewal. This, according, to him, left a brief interim during which the warrant for his custody was legally invalid.
He vowed to return home “soon,” telling reporters he would be challenging his two-and-a-half-month custody at the European Court of Human Rights.
Days later, he was arrested in central Amsterdam, after a photo published on Instagram with the hashtag #teamsindri allegedly gave him away, according to media outlet Iceland Monitor. Police at the time did not confirm this was the case.
Allegedly incriminating Instagram snap of Stefánsson in Amsterdam: Source: Iceland Monitor
Despite #teamsindri reportedly briefly trending across Icelandic Twitter, the case last month came to a head when a judge charged Stefánsson — alongside six others — with the theft of the 600 computers. While Stefánsson’s charge has been confirmed as theft, it remains unclear what role the other six defendants are charged with as having in the incident.
Just days after Stefansson’s Amsterdam stint, police in the northern Chinese city of Tianjin seized 600 computers used to mine Bitcoin, after abnormal electricity usage attracted the attention of the local power grid operator. Local media outlets reported the case as being the “largest power theft case in recent years,” but it notably also drew the attention of authorities back in Iceland, who suspected the exact number match of suspect hardware was more than just an uncanny coincidence.
Icelandic police subsequently reached out to Chinese authorities to try to link the two cases, yet no results have been reported since then.
“One of the best out there”: A teenage SIM-swapping crypto hacker with a taste for luxury cars
Last month, Californian police nabbed a hacker who allegedly stole Bitcoin worth over $1 million via a series of so-called ‘SIM-swapping’ heists — also known as ‘port-out scams.’ The 19-year-old suspect, identified as Xzavyer Narvaez, is said to have specialized in stealing cell phone numbers and using them to hijack online financial and social media accounts tied to those numbers.
A SIM-swap attack results in the victim suddenly losing all service, with any incoming calls or text messages redirected to the attacker’s device. As many firms use automated messages or phone calls to handle customer authentication, SIM swaps can be a goldmine in deft hands.  
Prosecutors allege that Narvaez used his ill-gotten crypto proceeds to purchase luxury goods, including a $200,000 high-performance McLaren sport car, which were tracked through records obtained from Bitcoin payment provider BitPay.
According to cybercrime blog Krebs on Security, the investigators interviewed several alleged victims of Narvaez, one of whom claimed he was robbed of $150,000 in crypto after his SIM was hijacked.
Between March and June 2018 alone, Narvaez’s account on crypto exchange Bittrex reportedly saw a flow of a staggering 157 BTC. He subsequently faced charges on four counts of using personal identifying information without authorization; four counts of altering and damaging computer data with intent to defraud or obtain money, or other value; and grand theft of personal property of a value over $950,000, according to court documents.
VICE’s parallel investigations traced Narvaez’s impressive “credentials” in the SIM-swapping underworld, with one source telling the magazine that he was considered “one of the best […] out there.” VICE’s source provided screenshots of Narvaez’s former Instagram account, which allegedly featured euphoric photos of his fresh, 2018 snow white McLaren, accompanied by the caption “live fast, die young.”
Narvaez is said to have come under the radar of law enforcement following the arrest of one Joel Ortiz, described as “a gifted 20-year-old college student from Boston” who was charged this July with using SIM swaps to swipe over $5 million in crypto from 40 different victims.
A redacted “statement of facts” in the case obtained by Krebs revealed that records obtained from Google had traced that a cellular device used by Ortiz to commit SIM swaps had at one point been used to access the Google account identified as [email protected].
In an unrelated case this July, Florida police reportedly arrested a 25-year-old, Ricky Joseph Handschumacher, who was accused of being part of a multi-state, cyber-fraud SIM-swapping ring that operated over the course of two years.
The gang of nine — scattered across different states — was initially tracked in February, when a “worried mom” overheard her son talking on the phone impersonating a telecoms firm employee. The group is alleged to have “routinely paid” employees at cell phone companies to assist in their schemes and to even have discussed a plan to hack accounts belonging to the CEO of the high-profile Gemini Trust company — namely those of Bitcoin billionaire Tyler Winklevoss.
Handschumacher himself posted multiple flashy purchases — including a pickup truck, multiple all-terrain vehicles and jet skis — on his public Facebook profile. Subpoenas to Coinbase revealed he had sold 82 BTC through his account, “virtually all” of which were not purchased on the platform.
As law enforcement closed in on this host of spry and unabashed millennial SIM swappers, in August, a U.S. investor filed a $224 million lawsuit, taking on telecoms giant AT&T. Michael Terpin accused the firm of alleged negligence, claiming that $24 million in crypto was stolen via a “digital identity theft” of his cell phone account.
His complaint alleged that:
“What AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner.”
“Fake news”: OKEx CEO “detained” for alleged fraud
The most recent high-profile, crypto-related “detention” involves OKEx CEO Star Xu, who was the subject of a host of conflicting media reports — and even one viral dumpling-related anecdote — following his sudden tête-à-tête with Chinese authorities this month.
Xu has robustly hit back at rumors that fraud was the reason for his purported ‘arrest,’ after local media reported that he had faced problems at his hotel from a group of investors in WFEE Coin, a blockchain WiFi sharing project they claimed Xu held shares in.
The allegedly defrauded victims had reportedly contacted Shanghai police, who “summoned” the CEO to a police station on Sept. 10 to “put [him] through a round of questioning to get to the bottom of the rumors,” as tech news source ZeroHedge wrote at the time.
A photograph of a police report about Xu on local news outlet Sina Technology appeared to confirm that the police had been notified at 5:59 p.m. on Sept. 10.
Image of police report allegedly involving Star Xu’s detention. Source: Sina Technology
At the same time, alternative sources in China claimed the investors were in fact traders incensed by system failures on the OKEx exchange itself. As Bitcoin (BTC) tumbled on Sept. 5, OKEx platform crashes are alleged to have left users unable to close or otherwise salvage their positions, with losses all the more acute in the case of leveraged trades.
Cointelegraph’s own Chinese sources have since thrown some degree of light on what had spiralled into a sordid media affair, substantiating suspicions that much of the hearsay was indeed “fake news.”
The sources have emphasized that Xu was the one who approached the police of his own accord. In their account, on Sept. 10, Xu had arrived at the Shanghai office of OK Group to meet with customers and conduct other business affairs. He had also — incidentally — made an appointment at the office to meet with a prospective personal fitness coach.
There, the first troubles with the disgruntled investors are said to have begun — who are thought to have been a mix of OKCoin and WFEE Coin investors. Some ambiguity remains as to their exact identity — and whether they were indeed railing against problems tied to the OKEx exchange or held Xu responsible for the vicissitudes of the WFEE token, or a mix of both.
Having gotten wind of Xu’s visit to Shanghai, the aggrieved group is alleged to have been responsible for vandalizing the sign at the city’s OK Group office, as appears to be shown in the following photograph:
Photo showing the apparent vandalization of OK Group’s entrance sign at the Shanghai office
An alarmed Xu is said to have headed back to his hotel, telling his prospective coach to make her way there as well, so as to resume their meeting. The investors are alleged to have then followed the woman’s tracks, suspecting she would lead them to Xu. There, they are alleged to have knocked on the door of the CEO’s room, threatening him.
After four tense hours, Xu is said to have alerted the police. The investors are again alleged to have followed his trail, whereupon Xu called a group of “henchmen” to join him at the police station. At this point, the investors are said to have taken fright and approached the authorities themselves.
In an interview published soon after his release, Xu confirmed he had been held by Shanghai police, seeming to imply he had made the contact on his own initiative:
“In Shanghai, someone reported that I was defrauding. I went to the police station to explain the situation and proved to the police that I did not swindle.”
On Twitter, OKEx COO Cheung also stated that Xu had been encircled by a group in Shanghai, although in his account, the police are said to have arrived to the scene themselves and moved all parties involved to the station. Cheung alleged that:
“While Star was invited to help with the investigation and those people was detained, they raised a fraud complaint against Star. Star stayed to clarify and then left afterward.”
According to Cointelegraph’s sources, no one was witness to Xu’s departure from the station, and it remains unclear how long he spent there.
Xu has stated that while it is “normal” for citizens to exercise their right to make such allegations, he has equally fulfilled his “duty” as a citizen by cooperating with the authorities. In terms of his alleged responsibility for system “abnormalities” on the exchange, Xu has responded that:
“I am not a legal person of OKEx, nor am I a shareholder or a director.”
This point was echoed in Cheung’s parallel tweets, in which the COO stressed that “Star is the founder of OK Group, [and] although we are good friends, he does not run OKEx.” Cheung has added that he felt “disappointed that the story was twisted before the truth came out.”
Local news outlet Jiemian has meanwhile reported that seven out of a total of 300 investors who claimed to have “suffered heavy losses” on the OKEx exchange have since reached a form of settlement with Xu. Notably, repeated system failures are alleged to have caused a total economic loss of “around 300 million yuan.”
In his post-release interview, Xu stressed that while leveraged trading is a “neutral tool in itself,” it is “not suitable for ordinary investors” as the potential for accelerated net profits and losses requires “professional knowledge” to manage the risks involved.
As Jiemian noted, while OKEx offers investors the opportunity to add as much as 20 times leverage to their contracts, unlike traditional futures trading platforms, the exchange operates without regulatory oversight.
As for the WFEE connection, OK Blockchain Capital (OKBC) — a strategic partner of OKEx and a subsidiary of OK Group — has publicly refuted the allegations that Xu had any shares in the project, tweeting on Sept. 12 that:
“The rumor that OK Group founder Star Xu [is] a shareholder of WFEE is fake. Mr. Xu has no equity relationship with WFEE and its company.”
OKBC has further clarified its own relationship with WFEE, stating that “OKBC is one of the institutional investors of WFEE.” WFEE reportedly “acquired OKBC’s and several other capitals’ investments […] when it was still the prime partner of WeShare WiFi — a global leading WiFi sharing company.” The firm added that it had not been notified of subsequent changes to the WFEE white paper, as OKBC “neither participates in” WFEE’s operations, nor in its “results.”
OKBC has also pointed to the fact that OKEx had warned its users of the potential risks posed by WFEE in August and included WFEE in their first “Token Delisting/Hiding Guideline [sic].”
So… what of the dumplings?
Amid the flurry of “twisted” media reports, one viral anecdote alleged that the band of investors had brought a hungry — and short-of-cash — Xu some sustenance, namely dumplings, as he underwent questioning at the police station. The story, despite its oddity, appears to have had some traction. Cointelegraph’s Chinese sources, for their part, dismissed it out-of-hand as an unthinkable and breathless piece of confected hearsay.
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Text
Arrests Making Headlines Across the Globe
Gone are the days when shady dealings in crypto were perceived as immune to the clutches of law enforcement.
Illicit crypto proceeds can be shuttled between wallet addresses at the click of a mouse, and their obfuscation behind the multiple strings of numbers and letters of wallet addresses can create a dizzying — if not impenetrable — cryptographic maze for authorities to navigate.
But the criminals themselves present a more concrete target, and as they interface with everything from crafty code to unwieldy hardware to ‘traditional’ firearms, there has been some success in 2018 in nabbing some of the year’s darkest — and most imaginative — offenders.
From soap actors to former lawmakers, Cointelegraph takes stock of some of the most illustrious arrests of the figures behind crypto’s high crimes and misdemeanours this year.
Foiled supercomputer Bitcoin heist in Russian nuclear no-man’s land
In February, Russian security agents scored a coup against a group of nuclear engineers at a top-secret nuclear warhead facility who tried to use one of the country’s most powerful supercomputers to mine Bitcoin (BTC).
The engineers worked at the Federal Nuclear Center in the western city of Sarov — formerly one of the Soviet Union’s closed-off cities, unmarked on historic maps and shrouded in secrecy.
As one of the Soviet “closed administrative territorial entities,” Sarov was then known as Arzamas-16, and was the center of research and production for the first Soviet atomic bomb and hydrogen bomb under Joseph Stalin. Special permits are still required today for ordinary Russians to visit it.
With such a stellar off-grid history, you’d think the Bitcoin-hungry nuclear engineers might have suspected that connecting the site’s supercomputer — a 1 petaflop titan with a capacity for 1,000 trillion calculations per second — to the internet might draw just a little attention.
As soon as the engineers tried to bring it online, the security department was alerted and was able to foil the scientists, who were peremptorily handed over to the Federal Security Service (FSB).
Tatiana Zalesskaya, the head of the press service for the research institute, told the Interfax news agency that that the attempt was a “technically hopeless and criminally punishable offense.”
A criminal case was reportedly duly opened against them.
Contentiously, it has been alleged that the radioactive polonium-210 used to kill ex-FSB agent Alexander Litvinenko in London in 2006 was produced in Sarov, which houses a plant that is said to be the “world’s only commercial producer of the substance,” according to evidence presented before a court in the United Kingdom.
Sarov’s rogue scientists are not the only ones to have thought of using former Soviet military spaces for crypto mining. The Ice Rock Mining firm has plans to — legally — set up mining operations in a former Soviet bunker located in a cave in Almaty, Kazakhstan.
Caught in the headlights: Thai actor “Boom” arrested on set for alleged crypto fraud family affair
This summer, reports emerged tied to the story of a Finnish millionaire allegedly fooled by a Thai crypto investment scam — to the tune of Bitcoin worth 797 million baht ($24.62 million) at the time.
According to the Thai Crime Suppression Division (CSD), the 22-year-old Finn, identified as Aarni Otava Saarimaa, claimed he had been lured into investing his Bitcoin into several companies, a casino and the gambling-focused crypto token Dragon Coin.
Saarima’s business partner, the Thai businessman Chonnikan Kaeosali, reportedly first approached the CSD in January this year, outlining how the pair had been drawn to purchase shares in three firms — Expay Group, NX Chain Inc. and DNA 2002 Plc — that were purported to be investors in Dragon Coin. He said they had first been approached in connection with the affair by a local Thai group back in June 2017.
The fraudsters are said to have taken their would-be victims around a Macau-based casino where they claimed the gambling-focused token would soon be used. Saarima subsequently transferred his crypto but never saw returns, shareholder papers nor any proof of investment in Dragon Coin.
As the CSD’s investigations unfolded, they identified a group of nine suspects — three of whom were revealed to be a group of siblings from the Jaravijit family. The suspects are said to have swiftly sold the crypto for local fiat currency, dispersing the spoils between various bank accounts.
It was the arrest of one of the siblings this summer — a dapper 27-year-old soap-opera star known as Jiratpisit “Boom” Jaravijit — that first brought the case to public light.  
On Aug. 9, Boom was taken into custody on money laundering charges in the midst of filming at the Major Cineplex Ratchayothin in Bangkok’s Chatuchak district. Local media noted it was the day after the star’s birthday.
It was alleged that the actor had colluded with his siblings to launder the swindled money, after investigations revealed they had bought 14 plots of land worth 176 million baht ($5.44 million).
Boom’s brother, Prinya Jaravijit, is said to have been the ringleader of the scheme, having reportedly received a tip-off from a Thai banker about the wealthy Finn and then setting the heist in motion. Prinya has reportedly fled to South Korea, while Boom’s sister is said to have made contact with the CSD to turn herself in.
The CSD has sought arrest warrants for a further six suspects and frozen a total of 51 different bank accounts in addition to the siblings’ land.
Boom was temporarily released on a 2 million baht ($61,827) bail bond on the condition that he would not leave the country, having argued that his arrest on set in a public place was ample proof he had not been intending to flee.
Earlier this month, another Jaravijit sibling turned himself in to deny the fraud charges, while police met two further suspects: Prasit Srisuwan, a well-known stock trader, and Chakris Ahmad.
Boom’s parents, Mr. Suwit and Ms. Lertchatkamol, have also been questioned after police traced that 90 million baht ($2.78 million) had been transferred to their accounts. Both have denied involvement.
India: Former ruling party lawmaker nabbed “fast asleep” on a construction site
As news of the many-tentacled Bitconnect investment heist continues to unfold globally, recent developments have unearthed a web of kidnappings and extortions allegedly tied to Bitconnect investors in the wealthy state of Gujarat.  
Earlier this month, a former Member of the Legislative Assembly (MLA) for India’s ruling Bharatiya Janata Party (BJP) was remanded in custody for allegedly conspiring with local police to kidnap and extort Bitcoin from a Gujarati Bitconnect investor.
In February, a Surat-based builder by the name of Shailesh Bhatt had charged into the Home Minister’s office in the Indian state of Gujarat, alleging that 10 district cops had kidnapped and extorted him for 176 BTC, worth 9.45 crore* rupee (around $1.31 million).
*A crore rupee denotes 10 million and is equal to 100 lakh rupee in the Indian numbering system (1 lakh rupee denotes 100,000)
The band of 10 was alleged to have comprised not only rank-and-file constables but even a superintendent and a local Crime Branch Inspector.
Bhatt, who is said to have been known for his penchant for Bitcoin trading, claimed he had been duped by one of his business aides, Kirit Paladiya, into thinking that the authorities were keeping him under close watch for his crypto dealings.
He alleged he had been lured by a phone call from his local Central Bureau of Investigation (CBI), where he was allegedly beaten in a “torture room” and asked by a CBI official to pay a cash ransom.
Two days later, he claimed he was kidnapped during a meeting with his aide Paladiya near a fuel station, where he was whisked off to a local farm house. There, he said, “[the police officers] beat me up inside a room and threatened to kill me […] if I did not hand over my Bitcoins.”
Bhatt then accused Paladiya of double-crossing him in cahoots with his influential uncle, the former BJP MLA Nalin Kotadiya, who he claimed had been the one who pressured him into paying the ransom.
Bhatt has himself been subsequently accused of being a wolf in sheep’s clothing. He has become embroiled in a case pertaining to an alleged earlier extortion of a staggering 1.55 billion rupee ($215 million) worth of crypto and cash at gunpoint — including around 2,400 BTC — from two colleagues of well-known local Bitconnect promoter Satish Kumbhani.  
However, Indian authorities nonetheless believed there is some weight behind the accusations against the former lawmaker Kotadiya, first issuing an arrest warrant against him in mid-May.
Kotadiya has repeatedly hit back against the allegations, notably via a WhatsApp video — reposted on Youtube in late April — in which, attired in pink, he claimed he had duly informed authorities about the Bitcoin heist and attributed the full blame for the extortion scandal and conspiracy to Bhatt.
Moreover, he threatened to leak evidence that would implicate even more local politicians in the scandal, saying that Bhatt was protecting them and therefore attempting to “fix him” in the case.
Nonetheless, by mid-June, a local sessions judge declared Kotadiya a “proclaimed offender” (absconder) and demanded he appear before the court within 30 days.
As Kotadiya continued to elude the clutches of law enforcement throughout summer, he was finally nabbed after four months in hiding on Sept. 10. He was reportedly found “fast asleep” on the second floor of a railway quarters still under construction, after a local contractor gave police the golden tip-off.
“When we [eventually] found him, he was sleeping on a mattress and there was just an earthen pot of water in the room.”
As Cointelegraph has reported, Kotadiya’s alleged embroilment has been a political gold mine for the opposition party, the Indian National Congress (INC), who allege that further members of the ruling BJP have used the Bitconnect scam to launder undeclared “black” money.
“The finger of suspicion of this massive scam of illegal cryptocurrency directly points to several top Bharatiya Janata Party leaders and a mastermind — an absconding BJP leader and former MLA Nalin Kotadiya […] Who are the top BJP leaders against whom Kotadiya has damning evidence? We demand an impartial Supreme Court-monitored judicial investigation.”
As of press time, the time of Kotadiya’s custody is up, yet the alleged evidence he claims to wield is yet to have been made public.
Iceland’s Bitcoin miner heist: A high-gliding fugitive and suspect hardware in Tianjin
This year, what has been described as one of Iceland’s “largest criminal cases in history” has seen an outlandish set of twists and turns, leading all the way to the northern Chinese city of Tianjin.
In February, news broke of a series of unprecedented thefts, involving powerful computing equipment that had been stolen in a “highly organized” Bitcoin mining heist. Three burglaries were reported to have taken place in December 2017 and a fourth in January.
The burglars had allegedly swiped 20 million krónur (around $180,000) worth of equipment — 600 graphics cards, 100 power supplies, 100 motherboards, 100 memory discs and 100 CPU processors — from a house in the municipality of Reykjanesbær.
They had also allegedly broken into data centers across both Reykjanesbær and Borgarbyggð, with a total of 600 computers stolen from both places, worth 200 million krónur (almost $2 million). The whereabouts of the equipment, including the computers — said to have been used for Bitcoin mining — remained untraceable, even as authorities monitored energy consumption for suspicious increases.
Police are said to have initially arrested eleven suspects — two of which were ordered to remain in custody, after the Icelandic IT firm Advania produced incriminating surveillance footage taken at the data center in Reykjanesbær. The authorities soon recovered most of the stolen equipment, yet the 600 computers remained elusive. Both suspects were reported in local media as being “uncooperative.”
Then, on April 17, one of the detainees escaped at 1 a.m. from his custody in an “open” (low-security) prison, just a week before authorities were due to move forward with an indictment.
The fugitive, Sindri Thor Stefánsson, fled the country on a passport bearing another man’s name, boarding a passenger plane to Sweden that was embarrassingly revealed to have been carrying Iceland’s prime minister.
Stefánsson subsequently released a statement claiming he had been “legally allowed” to travel on the day he boarded the plane to Stockholm, as his custody ruling expired April 16 and a judge had requested 24 hours to consider its renewal. This, according, to him, left a brief interim during which the warrant for his custody was legally invalid.
He vowed to return home “soon,” telling reporters he would be challenging his two-and-a-half-month custody at the European Court of Human Rights.
Days later, he was arrested in central Amsterdam, after a photo published on Instagram with the hashtag #teamsindri allegedly gave him away, according to media outlet Iceland Monitor. Police at the time did not confirm this was the case.
Allegedly incriminating Instagram snap of Stefánsson in Amsterdam: Source: Iceland Monitor
Despite #teamsindri reportedly briefly trending across Icelandic Twitter, the case last month came to a head when a judge charged Stefánsson — alongside six others — with the theft of the 600 computers. While Stefánsson’s charge has been confirmed as theft, it remains unclear what role the other six defendants are charged with as having in the incident.
Just days after Stefansson’s Amsterdam stint, police in the northern Chinese city of Tianjin seized 600 computers used to mine Bitcoin, after abnormal electricity usage attracted the attention of the local power grid operator. Local media outlets reported the case as being the “largest power theft case in recent years,” but it notably also drew the attention of authorities back in Iceland, who suspected the exact number match of suspect hardware was more than just an uncanny coincidence.
Icelandic police subsequently reached out to Chinese authorities to try to link the two cases, yet no results have been reported since then.
“One of the best out there”: A teenage SIM-swapping crypto hacker with a taste for luxury cars
Last month, Californian police nabbed a hacker who allegedly stole Bitcoin worth over $1 million via a series of so-called ‘SIM-swapping’ heists — also known as ‘port-out scams.’ The 19-year-old suspect, identified as Xzavyer Narvaez, is said to have specialized in stealing cell phone numbers and using them to hijack online financial and social media accounts tied to those numbers.
A SIM-swap attack results in the victim suddenly losing all service, with any incoming calls or text messages redirected to the attacker’s device. As many firms use automated messages or phone calls to handle customer authentication, SIM swaps can be a goldmine in deft hands.  
Prosecutors allege that Narvaez used his ill-gotten crypto proceeds to purchase luxury goods, including a $200,000 high-performance McLaren sport car, which were tracked through records obtained from Bitcoin payment provider BitPay.
According to cybercrime blog Krebs on Security, the investigators interviewed several alleged victims of Narvaez, one of whom claimed he was robbed of $150,000 in crypto after his SIM was hijacked.
Between March and June 2018 alone, Narvaez’s account on crypto exchange Bittrex reportedly saw a flow of a staggering 157 BTC. He subsequently faced charges on four counts of using personal identifying information without authorization; four counts of altering and damaging computer data with intent to defraud or obtain money, or other value; and grand theft of personal property of a value over $950,000, according to court documents.
VICE’s parallel investigations traced Narvaez’s impressive “credentials” in the SIM-swapping underworld, with one source telling the magazine that he was considered “one of the best […] out there.” VICE’s source provided screenshots of Narvaez’s former Instagram account, which allegedly featured euphoric photos of his fresh, 2018 snow white McLaren, accompanied by the caption “live fast, die young.”
Narvaez is said to have come under the radar of law enforcement following the arrest of one Joel Ortiz, described as “a gifted 20-year-old college student from Boston” who was charged this July with using SIM swaps to swipe over $5 million in crypto from 40 different victims.
A redacted “statement of facts” in the case obtained by Krebs revealed that records obtained from Google had traced that a cellular device used by Ortiz to commit SIM swaps had at one point been used to access the Google account identified as [email protected].
In an unrelated case this July, Florida police reportedly arrested a 25-year-old, Ricky Joseph Handschumacher, who was accused of being part of a multi-state, cyber-fraud SIM-swapping ring that operated over the course of two years.
The gang of nine — scattered across different states — was initially tracked in February, when a “worried mom” overheard her son talking on the phone impersonating a telecoms firm employee. The group is alleged to have “routinely paid” employees at cell phone companies to assist in their schemes and to even have discussed a plan to hack accounts belonging to the CEO of the high-profile Gemini Trust company — namely those of Bitcoin billionaire Tyler Winklevoss.
Handschumacher himself posted multiple flashy purchases — including a pickup truck, multiple all-terrain vehicles and jet skis — on his public Facebook profile. Subpoenas to Coinbase revealed he had sold 82 BTC through his account, “virtually all” of which were not purchased on the platform.
As law enforcement closed in on this host of spry and unabashed millennial SIM swappers, in August, a U.S. investor filed a $224 million lawsuit, taking on telecoms giant AT&T. Michael Terpin accused the firm of alleged negligence, claiming that $24 million in crypto was stolen via a “digital identity theft” of his cell phone account.
His complaint alleged that:
“What AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner.”
“Fake news”: OKEx CEO “detained” for alleged fraud
The most recent high-profile, crypto-related “detention” involves OKEx CEO Star Xu, who was the subject of a host of conflicting media reports — and even one viral dumpling-related anecdote — following his sudden tête-à-tête with Chinese authorities this month.
Xu has robustly hit back at rumors that fraud was the reason for his purported ‘arrest,’ after local media reported that he had faced problems at his hotel from a group of investors in WFEE Coin, a blockchain WiFi sharing project they claimed Xu held shares in.
The allegedly defrauded victims had reportedly contacted Shanghai police, who “summoned” the CEO to a police station on Sept. 10 to “put [him] through a round of questioning to get to the bottom of the rumors,” as tech news source ZeroHedge wrote at the time.
A photograph of a police report about Xu on local news outlet Sina Technology appeared to confirm that the police had been notified at 5:59 p.m. on Sept. 10.
Image of police report allegedly involving Star Xu’s detention. Source: Sina Technology
At the same time, alternative sources in China claimed the investors were in fact traders incensed by system failures on the OKEx exchange itself. As Bitcoin (BTC) tumbled on Sept. 5, OKEx platform crashes are alleged to have left users unable to close or otherwise salvage their positions, with losses all the more acute in the case of leveraged trades.
Cointelegraph’s own Chinese sources have since thrown some degree of light on what had spiralled into a sordid media affair, substantiating suspicions that much of the hearsay was indeed “fake news.”
The sources have emphasized that Xu was the one who approached the police of his own accord. In their account, on Sept. 10, Xu had arrived at the Shanghai office of OK Group to meet with customers and conduct other business affairs. He had also — incidentally — made an appointment at the office to meet with a prospective personal fitness coach.
There, the first troubles with the disgruntled investors are said to have begun — who are thought to have been a mix of OKCoin and WFEE Coin investors. Some ambiguity remains as to their exact identity — and whether they were indeed railing against problems tied to the OKEx exchange or held Xu responsible for the vicissitudes of the WFEE token, or a mix of both.
Having gotten wind of Xu’s visit to Shanghai, the aggrieved group is alleged to have been responsible for vandalizing the sign at the city’s OK Group office, as appears to be shown in the following photograph:
Photo showing the apparent vandalization of OK Group’s entrance sign at the Shanghai office
An alarmed Xu is said to have headed back to his hotel, telling his prospective coach to make her way there as well, so as to resume their meeting. The investors are alleged to have then followed the woman’s tracks, suspecting she would lead them to Xu. There, they are alleged to have knocked on the door of the CEO’s room, threatening him.
After four tense hours, Xu is said to have alerted the police. The investors are again alleged to have followed his trail, whereupon Xu called a group of “henchmen” to join him at the police station. At this point, the investors are said to have taken fright and approached the authorities themselves.
In an interview published soon after his release, Xu confirmed he had been held by Shanghai police, seeming to imply he had made the contact on his own initiative:
“In Shanghai, someone reported that I was defrauding. I went to the police station to explain the situation and proved to the police that I did not swindle.”
On Twitter, OKEx COO Cheung also stated that Xu had been encircled by a group in Shanghai, although in his account, the police are said to have arrived to the scene themselves and moved all parties involved to the station. Cheung alleged that:
“While Star was invited to help with the investigation and those people was detained, they raised a fraud complaint against Star. Star stayed to clarify and then left afterward.”
According to Cointelegraph’s sources, no one was witness to Xu’s departure from the station, and it remains unclear how long he spent there.
Xu has stated that while it is “normal” for citizens to exercise their right to make such allegations, he has equally fulfilled his “duty” as a citizen by cooperating with the authorities. In terms of his alleged responsibility for system “abnormalities” on the exchange, Xu has responded that:
“I am not a legal person of OKEx, nor am I a shareholder or a director.”
This point was echoed in Cheung’s parallel tweets, in which the COO stressed that “Star is the founder of OK Group, [and] although we are good friends, he does not run OKEx.” Cheung has added that he felt “disappointed that the story was twisted before the truth came out.”
Local news outlet Jiemian has meanwhile reported that seven out of a total of 300 investors who claimed to have “suffered heavy losses” on the OKEx exchange have since reached a form of settlement with Xu. Notably, repeated system failures are alleged to have caused a total economic loss of “around 300 million yuan.”
In his post-release interview, Xu stressed that while leveraged trading is a “neutral tool in itself,” it is “not suitable for ordinary investors” as the potential for accelerated net profits and losses requires “professional knowledge” to manage the risks involved.
As Jiemian noted, while OKEx offers investors the opportunity to add as much as 20 times leverage to their contracts, unlike traditional futures trading platforms, the exchange operates without regulatory oversight.
As for the WFEE connection, OK Blockchain Capital (OKBC) — a strategic partner of OKEx and a subsidiary of OK Group — has publicly refuted the allegations that Xu had any shares in the project, tweeting on Sept. 12 that:
“The rumor that OK Group founder Star Xu [is] a shareholder of WFEE is fake. Mr. Xu has no equity relationship with WFEE and its company.”
OKBC has further clarified its own relationship with WFEE, stating that “OKBC is one of the institutional investors of WFEE.” WFEE reportedly “acquired OKBC’s and several other capitals’ investments […] when it was still the prime partner of WeShare WiFi — a global leading WiFi sharing company.” The firm added that it had not been notified of subsequent changes to the WFEE white paper, as OKBC “neither participates in” WFEE’s operations, nor in its “results.”
OKBC has also pointed to the fact that OKEx had warned its users of the potential risks posed by WFEE in August and included WFEE in their first “Token Delisting/Hiding Guideline [sic].”
So… what of the dumplings?
Amid the flurry of “twisted” media reports, one viral anecdote alleged that the band of investors had brought a hungry — and short-of-cash — Xu some sustenance, namely dumplings, as he underwent questioning at the police station. The story, despite its oddity, appears to have had some traction. Cointelegraph’s Chinese sources, for their part, dismissed it out-of-hand as an unthinkable and breathless piece of confected hearsay.
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Arrests Making Headlines Across the Globe
Gone are the days when shady dealings in crypto were perceived as immune to the clutches of law enforcement.
Illicit crypto proceeds can be shuttled between wallet addresses at the click of a mouse, and their obfuscation behind the multiple strings of numbers and letters of wallet addresses can create a dizzying — if not impenetrable — cryptographic maze for authorities to navigate.
But the criminals themselves present a more concrete target, and as they interface with everything from crafty code to unwieldy hardware to ‘traditional’ firearms, there has been some success in 2018 in nabbing some of the year’s darkest — and most imaginative — offenders.
From soap actors to former lawmakers, Cointelegraph takes stock of some of the most illustrious arrests of the figures behind crypto’s high crimes and misdemeanours this year.
Foiled supercomputer Bitcoin heist in Russian nuclear no-man’s land
In February, Russian security agents scored a coup against a group of nuclear engineers at a top-secret nuclear warhead facility who tried to use one of the country’s most powerful supercomputers to mine Bitcoin (BTC).
The engineers worked at the Federal Nuclear Center in the western city of Sarov — formerly one of the Soviet Union’s closed-off cities, unmarked on historic maps and shrouded in secrecy.
As one of the Soviet “closed administrative territorial entities,” Sarov was then known as Arzamas-16, and was the center of research and production for the first Soviet atomic bomb and hydrogen bomb under Joseph Stalin. Special permits are still required today for ordinary Russians to visit it.
With such a stellar off-grid history, you’d think the Bitcoin-hungry nuclear engineers might have suspected that connecting the site’s supercomputer — a 1 petaflop titan with a capacity for 1,000 trillion calculations per second — to the internet might draw just a little attention.
As soon as the engineers tried to bring it online, the security department was alerted and was able to foil the scientists, who were peremptorily handed over to the Federal Security Service (FSB).
Tatiana Zalesskaya, the head of the press service for the research institute, told the Interfax news agency that that the attempt was a “technically hopeless and criminally punishable offense.”
A criminal case was reportedly duly opened against them.
Contentiously, it has been alleged that the radioactive polonium-210 used to kill ex-FSB agent Alexander Litvinenko in London in 2006 was produced in Sarov, which houses a plant that is said to be the “world’s only commercial producer of the substance,” according to evidence presented before a court in the United Kingdom.
Sarov’s rogue scientists are not the only ones to have thought of using former Soviet military spaces for crypto mining. The Ice Rock Mining firm has plans to — legally — set up mining operations in a former Soviet bunker located in a cave in Almaty, Kazakhstan.
Caught in the headlights: Thai actor “Boom” arrested on set for alleged crypto fraud family affair
This summer, reports emerged tied to the story of a Finnish millionaire allegedly fooled by a Thai crypto investment scam — to the tune of Bitcoin worth 797 million baht ($24.62 million) at the time.
According to the Thai Crime Suppression Division (CSD), the 22-year-old Finn, identified as Aarni Otava Saarimaa, claimed he had been lured into investing his Bitcoin into several companies, a casino and the gambling-focused crypto token Dragon Coin.
Saarima’s business partner, the Thai businessman Chonnikan Kaeosali, reportedly first approached the CSD in January this year, outlining how the pair had been drawn to purchase shares in three firms — Expay Group, NX Chain Inc. and DNA 2002 Plc — that were purported to be investors in Dragon Coin. He said they had first been approached in connection with the affair by a local Thai group back in June 2017.
The fraudsters are said to have taken their would-be victims around a Macau-based casino where they claimed the gambling-focused token would soon be used. Saarima subsequently transferred his crypto but never saw returns, shareholder papers nor any proof of investment in Dragon Coin.
As the CSD’s investigations unfolded, they identified a group of nine suspects — three of whom were revealed to be a group of siblings from the Jaravijit family. The suspects are said to have swiftly sold the crypto for local fiat currency, dispersing the spoils between various bank accounts.
It was the arrest of one of the siblings this summer — a dapper 27-year-old soap-opera star known as Jiratpisit “Boom” Jaravijit — that first brought the case to public light.  
On Aug. 9, Boom was taken into custody on money laundering charges in the midst of filming at the Major Cineplex Ratchayothin in Bangkok’s Chatuchak district. Local media noted it was the day after the star’s birthday.
It was alleged that the actor had colluded with his siblings to launder the swindled money, after investigations revealed they had bought 14 plots of land worth 176 million baht ($5.44 million).
Boom’s brother, Prinya Jaravijit, is said to have been the ringleader of the scheme, having reportedly received a tip-off from a Thai banker about the wealthy Finn and then setting the heist in motion. Prinya has reportedly fled to South Korea, while Boom’s sister is said to have made contact with the CSD to turn herself in.
The CSD has sought arrest warrants for a further six suspects and frozen a total of 51 different bank accounts in addition to the siblings’ land.
Boom was temporarily released on a 2 million baht ($61,827) bail bond on the condition that he would not leave the country, having argued that his arrest on set in a public place was ample proof he had not been intending to flee.
Earlier this month, another Jaravijit sibling turned himself in to deny the fraud charges, while police met two further suspects: Prasit Srisuwan, a well-known stock trader, and Chakris Ahmad.
Boom’s parents, Mr. Suwit and Ms. Lertchatkamol, have also been questioned after police traced that 90 million baht ($2.78 million) had been transferred to their accounts. Both have denied involvement.
India: Former ruling party lawmaker nabbed “fast asleep” on a construction site
As news of the many-tentacled Bitconnect investment heist continues to unfold globally, recent developments have unearthed a web of kidnappings and extortions allegedly tied to Bitconnect investors in the wealthy state of Gujarat.  
Earlier this month, a former Member of the Legislative Assembly (MLA) for India’s ruling Bharatiya Janata Party (BJP) was remanded in custody for allegedly conspiring with local police to kidnap and extort Bitcoin from a Gujarati Bitconnect investor.
In February, a Surat-based builder by the name of Shailesh Bhatt had charged into the Home Minister’s office in the Indian state of Gujarat, alleging that 10 district cops had kidnapped and extorted him for 176 BTC, worth 9.45 crore* rupee (around $1.31 million).
*A crore rupee denotes 10 million and is equal to 100 lakh rupee in the Indian numbering system (1 lakh rupee denotes 100,000)
The band of 10 was alleged to have comprised not only rank-and-file constables but even a superintendent and a local Crime Branch Inspector.
Bhatt, who is said to have been known for his penchant for Bitcoin trading, claimed he had been duped by one of his business aides, Kirit Paladiya, into thinking that the authorities were keeping him under close watch for his crypto dealings.
He alleged he had been lured by a phone call from his local Central Bureau of Investigation (CBI), where he was allegedly beaten in a “torture room” and asked by a CBI official to pay a cash ransom.
Two days later, he claimed he was kidnapped during a meeting with his aide Paladiya near a fuel station, where he was whisked off to a local farm house. There, he said, “[the police officers] beat me up inside a room and threatened to kill me […] if I did not hand over my Bitcoins.”
Bhatt then accused Paladiya of double-crossing him in cahoots with his influential uncle, the former BJP MLA Nalin Kotadiya, who he claimed had been the one who pressured him into paying the ransom.
Bhatt has himself been subsequently accused of being a wolf in sheep’s clothing. He has become embroiled in a case pertaining to an alleged earlier extortion of a staggering 1.55 billion rupee ($215 million) worth of crypto and cash at gunpoint — including around 2,400 BTC — from two colleagues of well-known local Bitconnect promoter Satish Kumbhani.  
However, Indian authorities nonetheless believed there is some weight behind the accusations against the former lawmaker Kotadiya, first issuing an arrest warrant against him in mid-May.
Kotadiya has repeatedly hit back against the allegations, notably via a WhatsApp video — reposted on Youtube in late April — in which, attired in pink, he claimed he had duly informed authorities about the Bitcoin heist and attributed the full blame for the extortion scandal and conspiracy to Bhatt.
Moreover, he threatened to leak evidence that would implicate even more local politicians in the scandal, saying that Bhatt was protecting them and therefore attempting to “fix him” in the case.
Nonetheless, by mid-June, a local sessions judge declared Kotadiya a “proclaimed offender” (absconder) and demanded he appear before the court within 30 days.
As Kotadiya continued to elude the clutches of law enforcement throughout summer, he was finally nabbed after four months in hiding on Sept. 10. He was reportedly found “fast asleep” on the second floor of a railway quarters still under construction, after a local contractor gave police the golden tip-off.
“When we [eventually] found him, he was sleeping on a mattress and there was just an earthen pot of water in the room.”
As Cointelegraph has reported, Kotadiya’s alleged embroilment has been a political gold mine for the opposition party, the Indian National Congress (INC), who allege that further members of the ruling BJP have used the Bitconnect scam to launder undeclared “black” money.
“The finger of suspicion of this massive scam of illegal cryptocurrency directly points to several top Bharatiya Janata Party leaders and a mastermind — an absconding BJP leader and former MLA Nalin Kotadiya […] Who are the top BJP leaders against whom Kotadiya has damning evidence? We demand an impartial Supreme Court-monitored judicial investigation.”
As of press time, the time of Kotadiya’s custody is up, yet the alleged evidence he claims to wield is yet to have been made public.
Iceland’s Bitcoin miner heist: A high-gliding fugitive and suspect hardware in Tianjin
This year, what has been described as one of Iceland’s “largest criminal cases in history” has seen an outlandish set of twists and turns, leading all the way to the northern Chinese city of Tianjin.
In February, news broke of a series of unprecedented thefts, involving powerful computing equipment that had been stolen in a “highly organized” Bitcoin mining heist. Three burglaries were reported to have taken place in December 2017 and a fourth in January.
The burglars had allegedly swiped 20 million krónur (around $180,000) worth of equipment — 600 graphics cards, 100 power supplies, 100 motherboards, 100 memory discs and 100 CPU processors — from a house in the municipality of Reykjanesbær.
They had also allegedly broken into data centers across both Reykjanesbær and Borgarbyggð, with a total of 600 computers stolen from both places, worth 200 million krónur (almost $2 million). The whereabouts of the equipment, including the computers — said to have been used for Bitcoin mining — remained untraceable, even as authorities monitored energy consumption for suspicious increases.
Police are said to have initially arrested eleven suspects — two of which were ordered to remain in custody, after the Icelandic IT firm Advania produced incriminating surveillance footage taken at the data center in Reykjanesbær. The authorities soon recovered most of the stolen equipment, yet the 600 computers remained elusive. Both suspects were reported in local media as being “uncooperative.”
Then, on April 17, one of the detainees escaped at 1 a.m. from his custody in an “open” (low-security) prison, just a week before authorities were due to move forward with an indictment.
The fugitive, Sindri Thor Stefánsson, fled the country on a passport bearing another man’s name, boarding a passenger plane to Sweden that was embarrassingly revealed to have been carrying Iceland’s prime minister.
Stefánsson subsequently released a statement claiming he had been “legally allowed” to travel on the day he boarded the plane to Stockholm, as his custody ruling expired April 16 and a judge had requested 24 hours to consider its renewal. This, according, to him, left a brief interim during which the warrant for his custody was legally invalid.
He vowed to return home “soon,” telling reporters he would be challenging his two-and-a-half-month custody at the European Court of Human Rights.
Days later, he was arrested in central Amsterdam, after a photo published on Instagram with the hashtag #teamsindri allegedly gave him away, according to media outlet Iceland Monitor. Police at the time did not confirm this was the case.
Allegedly incriminating Instagram snap of Stefánsson in Amsterdam: Source: Iceland Monitor
Despite #teamsindri reportedly briefly trending across Icelandic Twitter, the case last month came to a head when a judge charged Stefánsson — alongside six others — with the theft of the 600 computers. While Stefánsson’s charge has been confirmed as theft, it remains unclear what role the other six defendants are charged with as having in the incident.
Just days after Stefansson’s Amsterdam stint, police in the northern Chinese city of Tianjin seized 600 computers used to mine Bitcoin, after abnormal electricity usage attracted the attention of the local power grid operator. Local media outlets reported the case as being the “largest power theft case in recent years,” but it notably also drew the attention of authorities back in Iceland, who suspected the exact number match of suspect hardware was more than just an uncanny coincidence.
Icelandic police subsequently reached out to Chinese authorities to try to link the two cases, yet no results have been reported since then.
“One of the best out there”: A teenage SIM-swapping crypto hacker with a taste for luxury cars
Last month, Californian police nabbed a hacker who allegedly stole Bitcoin worth over $1 million via a series of so-called ‘SIM-swapping’ heists — also known as ‘port-out scams.’ The 19-year-old suspect, identified as Xzavyer Narvaez, is said to have specialized in stealing cell phone numbers and using them to hijack online financial and social media accounts tied to those numbers.
A SIM-swap attack results in the victim suddenly losing all service, with any incoming calls or text messages redirected to the attacker’s device. As many firms use automated messages or phone calls to handle customer authentication, SIM swaps can be a goldmine in deft hands.  
Prosecutors allege that Narvaez used his ill-gotten crypto proceeds to purchase luxury goods, including a $200,000 high-performance McLaren sport car, which were tracked through records obtained from Bitcoin payment provider BitPay.
According to cybercrime blog Krebs on Security, the investigators interviewed several alleged victims of Narvaez, one of whom claimed he was robbed of $150,000 in crypto after his SIM was hijacked.
Between March and June 2018 alone, Narvaez’s account on crypto exchange Bittrex reportedly saw a flow of a staggering 157 BTC. He subsequently faced charges on four counts of using personal identifying information without authorization; four counts of altering and damaging computer data with intent to defraud or obtain money, or other value; and grand theft of personal property of a value over $950,000, according to court documents.
VICE’s parallel investigations traced Narvaez’s impressive “credentials” in the SIM-swapping underworld, with one source telling the magazine that he was considered “one of the best […] out there.” VICE’s source provided screenshots of Narvaez’s former Instagram account, which allegedly featured euphoric photos of his fresh, 2018 snow white McLaren, accompanied by the caption “live fast, die young.”
Narvaez is said to have come under the radar of law enforcement following the arrest of one Joel Ortiz, described as “a gifted 20-year-old college student from Boston” who was charged this July with using SIM swaps to swipe over $5 million in crypto from 40 different victims.
A redacted “statement of facts” in the case obtained by Krebs revealed that records obtained from Google had traced that a cellular device used by Ortiz to commit SIM swaps had at one point been used to access the Google account identified as [email protected].
In an unrelated case this July, Florida police reportedly arrested a 25-year-old, Ricky Joseph Handschumacher, who was accused of being part of a multi-state, cyber-fraud SIM-swapping ring that operated over the course of two years.
The gang of nine — scattered across different states — was initially tracked in February, when a “worried mom” overheard her son talking on the phone impersonating a telecoms firm employee. The group is alleged to have “routinely paid” employees at cell phone companies to assist in their schemes and to even have discussed a plan to hack accounts belonging to the CEO of the high-profile Gemini Trust company — namely those of Bitcoin billionaire Tyler Winklevoss.
Handschumacher himself posted multiple flashy purchases — including a pickup truck, multiple all-terrain vehicles and jet skis — on his public Facebook profile. Subpoenas to Coinbase revealed he had sold 82 BTC through his account, “virtually all” of which were not purchased on the platform.
As law enforcement closed in on this host of spry and unabashed millennial SIM swappers, in August, a U.S. investor filed a $224 million lawsuit, taking on telecoms giant AT&T. Michael Terpin accused the firm of alleged negligence, claiming that $24 million in crypto was stolen via a “digital identity theft” of his cell phone account.
His complaint alleged that:
“What AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner.”
“Fake news”: OKEx CEO “detained” for alleged fraud
The most recent high-profile, crypto-related “detention” involves OKEx CEO Star Xu, who was the subject of a host of conflicting media reports — and even one viral dumpling-related anecdote — following his sudden tête-à-tête with Chinese authorities this month.
Xu has robustly hit back at rumors that fraud was the reason for his purported ‘arrest,’ after local media reported that he had faced problems at his hotel from a group of investors in WFEE Coin, a blockchain WiFi sharing project they claimed Xu held shares in.
The allegedly defrauded victims had reportedly contacted Shanghai police, who “summoned” the CEO to a police station on Sept. 10 to “put [him] through a round of questioning to get to the bottom of the rumors,” as tech news source ZeroHedge wrote at the time.
A photograph of a police report about Xu on local news outlet Sina Technology appeared to confirm that the police had been notified at 5:59 p.m. on Sept. 10.
Image of police report allegedly involving Star Xu’s detention. Source: Sina Technology
At the same time, alternative sources in China claimed the investors were in fact traders incensed by system failures on the OKEx exchange itself. As Bitcoin (BTC) tumbled on Sept. 5, OKEx platform crashes are alleged to have left users unable to close or otherwise salvage their positions, with losses all the more acute in the case of leveraged trades.
Cointelegraph’s own Chinese sources have since thrown some degree of light on what had spiralled into a sordid media affair, substantiating suspicions that much of the hearsay was indeed “fake news.”
The sources have emphasized that Xu was the one who approached the police of his own accord. In their account, on Sept. 10, Xu had arrived at the Shanghai office of OK Group to meet with customers and conduct other business affairs. He had also — incidentally — made an appointment at the office to meet with a prospective personal fitness coach.
There, the first troubles with the disgruntled investors are said to have begun — who are thought to have been a mix of OKCoin and WFEE Coin investors. Some ambiguity remains as to their exact identity — and whether they were indeed railing against problems tied to the OKEx exchange or held Xu responsible for the vicissitudes of the WFEE token, or a mix of both.
Having gotten wind of Xu’s visit to Shanghai, the aggrieved group is alleged to have been responsible for vandalizing the sign at the city’s OK Group office, as appears to be shown in the following photograph:
Photo showing the apparent vandalization of OK Group’s entrance sign at the Shanghai office
An alarmed Xu is said to have headed back to his hotel, telling his prospective coach to make her way there as well, so as to resume their meeting. The investors are alleged to have then followed the woman’s tracks, suspecting she would lead them to Xu. There, they are alleged to have knocked on the door of the CEO’s room, threatening him.
After four tense hours, Xu is said to have alerted the police. The investors are again alleged to have followed his trail, whereupon Xu called a group of “henchmen” to join him at the police station. At this point, the investors are said to have taken fright and approached the authorities themselves.
In an interview published soon after his release, Xu confirmed he had been held by Shanghai police, seeming to imply he had made the contact on his own initiative:
“In Shanghai, someone reported that I was defrauding. I went to the police station to explain the situation and proved to the police that I did not swindle.”
On Twitter, OKEx COO Cheung also stated that Xu had been encircled by a group in Shanghai, although in his account, the police are said to have arrived to the scene themselves and moved all parties involved to the station. Cheung alleged that:
“While Star was invited to help with the investigation and those people was detained, they raised a fraud complaint against Star. Star stayed to clarify and then left afterward.”
According to Cointelegraph’s sources, no one was witness to Xu’s departure from the station, and it remains unclear how long he spent there.
Xu has stated that while it is “normal” for citizens to exercise their right to make such allegations, he has equally fulfilled his “duty” as a citizen by cooperating with the authorities. In terms of his alleged responsibility for system “abnormalities” on the exchange, Xu has responded that:
“I am not a legal person of OKEx, nor am I a shareholder or a director.”
This point was echoed in Cheung’s parallel tweets, in which the COO stressed that “Star is the founder of OK Group, [and] although we are good friends, he does not run OKEx.” Cheung has added that he felt “disappointed that the story was twisted before the truth came out.”
Local news outlet Jiemian has meanwhile reported that seven out of a total of 300 investors who claimed to have “suffered heavy losses” on the OKEx exchange have since reached a form of settlement with Xu. Notably, repeated system failures are alleged to have caused a total economic loss of “around 300 million yuan.”
In his post-release interview, Xu stressed that while leveraged trading is a “neutral tool in itself,” it is “not suitable for ordinary investors” as the potential for accelerated net profits and losses requires “professional knowledge” to manage the risks involved.
As Jiemian noted, while OKEx offers investors the opportunity to add as much as 20 times leverage to their contracts, unlike traditional futures trading platforms, the exchange operates without regulatory oversight.
As for the WFEE connection, OK Blockchain Capital (OKBC) — a strategic partner of OKEx and a subsidiary of OK Group — has publicly refuted the allegations that Xu had any shares in the project, tweeting on Sept. 12 that:
“The rumor that OK Group founder Star Xu [is] a shareholder of WFEE is fake. Mr. Xu has no equity relationship with WFEE and its company.”
OKBC has further clarified its own relationship with WFEE, stating that “OKBC is one of the institutional investors of WFEE.” WFEE reportedly “acquired OKBC’s and several other capitals’ investments […] when it was still the prime partner of WeShare WiFi — a global leading WiFi sharing company.” The firm added that it had not been notified of subsequent changes to the WFEE white paper, as OKBC “neither participates in” WFEE’s operations, nor in its “results.”
OKBC has also pointed to the fact that OKEx had warned its users of the potential risks posed by WFEE in August and included WFEE in their first “Token Delisting/Hiding Guideline [sic].”
So… what of the dumplings?
Amid the flurry of “twisted” media reports, one viral anecdote alleged that the band of investors had brought a hungry — and short-of-cash — Xu some sustenance, namely dumplings, as he underwent questioning at the police station. The story, despite its oddity, appears to have had some traction. Cointelegraph’s Chinese sources, for their part, dismissed it out-of-hand as an unthinkable and breathless piece of confected hearsay.
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