The federal government of the United States has extradited a Swedish national from Thailand who allegedly sold fake securities to investors online. The scammer has reportedly gathered over $11 million worth of Bitcoin (BTC).
According to a press release from the U.S. Department of Justice (DoJ) published on November 18, Roger Nils-Jonas Karlsson is on his way to the United States. Here he will stand trial on behalf of himself and his company, Eastern Metal Securities.
Per the press release from the DoJ, Karlsson’s arrest took place on June 17. Furthermore, the U.S. federal grand jury indicted Karlsson on various charges. On July 25, his charges included securities fraud, online fraud, and money US.
Karlsson’s Fraudulent Scheme to Garner Money in BTC
Operating the business remotely, Karlsson took payments from investors using virtual currencies including Bitcoin (BTC). Moreover, he promised investors to return 97% of the value of their initial investment if the gold payout did not pan out.
The US government supposes Karlsson used Eastern Metal Securities. He also used a bunch of false online identities to funnel investors into paying $98 per share in the company. Karlsson promised an eventual payout of 1.15 kilograms of gold per share.
According to the DoJ, 3,575 people invested a total of over $11 million worth of BTC in Karlsson’s fraudulent scheme. It seems that money is now tied up in Thailand’s real estate market, the release says.
However, recently, more crypto scams are being uncovered. Last week, a co-founder of a massive Ponzi scheme OneCoin pleaded guilty to charges including fraud and money laundering. As a result, the scammer, Konstantin Ignatov, faces up to 90 years in jail.
New York’s Southern District Court recently indicted a man allegedly participating in a cryptocurrency scam. Asa Saint Clair’s accusation includes wire fraud. This charge carries a maximum sentence of 20 years in prison if convicted. The scammer reportedly used ill-gotten investor funds to finance his other firms as well as some of the high life in Manhattan.
- Trading Instrument