US Prosecutors Charge New Suspect in $45 Million Blockchain Scam ‘CoinDeal’
_id_b32fb481-53b2-43f3-b9be-7ec7ef356fd6_size900.jpg "US Prosecutors Charge New Suspect in Million Blockchain Scam ‘CoinDeal’")
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US prosecutors have filed a lawsuit against a new suspect, Bryan Lee, 57, for his alleged involvement in ‘CoinDeal’, a fraudulent investment scheme that raised $45 million by selling unregistered securities. Neil Chandran, the mastermind behind the scheme, was arrested in June last year and charged with wire fraud and money transactions in illegal earnings.
Despite a similar brand, the scheme has no connection with CoinDeal, a St. Vincent and the Grenadines-based crypto. Exchange run by Adam Bicz and Kajetan Maćkowiak.
Earlier in January, the United States Securities and Exchange Commission (SEC ) charged Chandran and four other people for their involvement in the scheme. The securities regulator named the individuals as Garry Davidson, Michael Glaspie, Amy Mossel and Linda Knott.
According to the regulator, the individuals through three entities: AEO Publishing Inc, Banner Co-Op, Inc and BannersGo, LLC were involved in the sale of unregistered securities between January 2019 and 2022.
In the latest on the case, the US Department of Justice revealed on Friday that Lee will appear in federal court in Las Vegas as part of the prosecution. The Attorney General noted that Lee conspired with Chandran and others to defraud investors via companies controlled by the latter.
How Chandran ran ‘CoinDeal’
According to US prosecutors, Chandran and his cohort ran various companies under the name ‘CoinDeal’. The firms, which also operated under the “ViRSE” banner, included Free Vi Lab, Studio Vi Inc., ViDelivery Inc., ViMarket Inc. and Skalex USA Inc., among others.
Citing court documents, prosecutors explained that Chandra falsely claimed they were developing virtual world or blockchain technologies, including their own cryptocurrency, for use in a metaverse. They also misled investors by promising “extremely high returns”, claiming that the company was about to be bought by a group of wealthy buyers.
Specifically, prosecutors said Lee was a nominee and director of ViMarket. In this role, he followed Chandran’s directives on how to disburse investor funds deposited into ViMarket’s bank accounts.
Furthermore, the DOJ alleges that both executives misappropriated “millions of dollars of investor funds and spent them on luxury cars and real estate.” Prosecutors said over 10,000 victims were affected by the scheme.
“Lee is charged with one count of conspiracy, two counts of mail fraud, one count of wire fraud and three counts of engaging in criminal property money transactions,” the DOJ said in a statement. “If convicted, Lee faces up to 20 years in prison on each count of wire fraud, mail fraud and conspiracy, and up to 10 years in prison on each count of engaging in illegal money transactions.”
Meanwhile, the attorney general noted that Michael Glaspie, who helped market Chandran’s companies, pleaded guilty to wire fraud in February and will be sentenced on June 16.
US prosecutors have filed a lawsuit against a new suspect, Bryan Lee, 57, for his alleged involvement in ‘CoinDeal’, a fraudulent investment scheme that raised $45 million by selling unregistered securities. Neil Chandran, the mastermind behind the scheme, was arrested in June last year and charged with wire fraud and money transactions in illegal earnings.
Despite a similar brand, the scheme has no connection with CoinDeal, a St. Vincent and the Grenadines-based crypto. Exchange run by Adam Bicz and Kajetan Maćkowiak.
Earlier in January, the United States Securities and Exchange Commission (SEC ) charged Chandran and four other people for their involvement in the scheme. The securities regulator named the individuals as Garry Davidson, Michael Glaspie, Amy Mossel and Linda Knott.
According to the regulator, the individuals through three entities: AEO Publishing Inc, Banner Co-Op, Inc and BannersGo, LLC were involved in the sale of unregistered securities between January 2019 and 2022.
In the latest on the case, the US Department of Justice revealed on Friday that Lee will appear in federal court in Las Vegas as part of the prosecution. The Attorney General noted that Lee conspired with Chandran and others to defraud investors via companies controlled by the latter.
How Chandran ran ‘CoinDeal’
According to US prosecutors, Chandran and his cohort ran various companies under the name ‘CoinDeal’. The firms, which also operated under the “ViRSE” banner, included Free Vi Lab, Studio Vi Inc., ViDelivery Inc., ViMarket Inc. and Skalex USA Inc., among others.
Citing court documents, prosecutors explained that Chandra falsely claimed they were developing virtual world or blockchain technologies, including their own cryptocurrency, for use in a metaverse. They also misled investors by promising “extremely high returns”, claiming that the company was about to be bought by a group of wealthy buyers.
Specifically, prosecutors said Lee was a nominee and director of ViMarket. In this role, he followed Chandran’s directives on how to disburse investor funds deposited into ViMarket’s bank accounts.
Furthermore, the DOJ alleges that both executives misappropriated “millions of dollars of investor funds and spent them on luxury cars and real estate.” Prosecutors said over 10,000 victims were affected by the scheme.
“Lee is charged with one count of conspiracy, two counts of mail fraud, one count of wire fraud and three counts of engaging in criminal property money transactions,” the DOJ said in a statement. “If convicted, Lee faces up to 20 years in prison on each count of wire fraud, mail fraud and conspiracy, and up to 10 years in prison on each count of engaging in illegal money transactions.”
Meanwhile, the attorney general noted that Michael Glaspie, who helped market Chandran’s companies, pleaded guilty to wire fraud in February and will be sentenced on June 16.
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