About the author, John Christmas: I am a graduate of Dartmouth College and Cornell University. I used to be a banker, most notably the whistleblower against Parex Bank of Latvia, which was linked to Russian President Vladimir Putin in several ways. I am co-author of award-winning thriller ‘KGB Banker’ inspired by my whistleblowing saga. I wrote a previous piece for FinTelegram and the link is in this new piece. On 26 September 2024, the U.S. Treasury’s Financial Crimes Enforcement Network ‘FinCEN’ made the astonishing decision to drop sanctions against ABLV Bank of Latvia. ABLV was sanctioned in 2018 for a list of reasons, including helping Ukrainian President Viktor Yanukovich’s bagman, Serhiy Kurchenko, steal billions of dollars from Ukraine. This action triggered the violent ouster of Yanukovich, which was followed by the Russian invasions in 2014 and 2022. Pictured is the X post by the US Embassy in Latvia announcing this decision. In this post, the US Embassy ‘applauds’ Latvia for ‘excellence’ in fighting money laundering. As the exiled whistleblower against the Kremlin’s money launderers and bank embezzlers in Latvia, sometimes called the Latvian Proxy Network, I am horrified by the US Treasury decision and left wondering whether it was motivated by corruption, incompetence, ignorance, or all three? The Latvian Money Laundering Operations The reality is that Latvia is funding the money launderers, not fighting them. Clear evidence that Latvia is secretly paying the European Bank for Reconstruction and Development ‘EBRD’ (partly owned by the United States) to act as straw owner of Russian offshore banks is available from me (2009), the Latvian government’s consultant Nomura (2010), the Dutch Parliament (2014), Eurostat (2014 and 2018), and the Latvian Parliament (2014 and 2015). Despite piles of undisputed, almost everyone in the American government, Latvian government, and mainstream media is either fooled or playing a game of ‘plausible deniability’ while the corruption, fraud, and money laundering keep getting worse. I have written about this for FinTelegram with full referencing of evidence. In 2004, I was employed by Parex Bank of Latvia. The US Embassy asked me for information about Parex since they believed it was involved with Russian organized crime. I learned about large fraudulent loans Parex was making to insiders. The amount of these loans was larger than the bank’s reported equity, indicating that the bank, in reality, had negative equity. I gave names and details to many institutions, including the US Embassy. Later, Parex was identified by the Spanish court in the Tambovskaya Mafia prosecution for providing platform money-laundering accounts to both of the two named money launderers for that Putin-linked gang. And after that, two of the insiders were named on the US Treasury Putin Warning List. The result of my whistleblowing was that the US Embassy, and later also the US Treasury, refused to look at or even acknowledge receiving the information. They refused to communicate with me even though they had requested the information. Meanwhile, Latvian officials reacted by hosting Parex promotions at diplomatic premises in London and Switzerland so that Parex could borrow even more money, some of which was transferred to Eduard Khudainatov, who the US FBI later identified as a frontman holding assets in his name on behalf of Putin. Since the insider loans predictably weren’t paid back, the Latvian government started secretly paying the EBRD to pretend to invest in Parex to dupe onlookers that Parex wasn’t looted even though it was. That deal was signed by Prime Minister Valdis Dombrovskis. Plus, Latvia made huge loans to Parex to fund movement of Parex accounts to sister bank ABLV and a new Parex successor Citadele. Latvian politicians blamed the resulting national financial collapse on the United States. https://fintelegram.com/tag/ukio-bankKey people from Parex moved their activities to Ukio Bank Lithuania and Danske Bank Estonia, where they organized massive Putin-linked money laundering scams. When Ukio got looted, the EBRD got involved in intransparent ways. And, EBRD subsidiary Citadele employed a former Parex banker while he controlled the Marshall Islands company at the center of the money laundering at Danske. Total money laundering at all of these institutions together was over one trillion dollars and euros making it the largest money laundering racket in world history. The Kremlin-linked bankers walked free with the money while Latvian taxpayers were tricked into bailing out Parex, Lithuanian taxpayers were tricked into bailing out Ukio, and Danish pensioners invested in Danske got hit with a huge penalty for money laundering they weren’t aware of. A 2018 Eurostat report indicates that Latvia is secretly paying the EBRD to pretend to invest in Citadele, which is the same thing Latvia and the EBRD did with Parex. This Citadele scam is still ongoing now in 2024. How is it possible the US Treasury missed everything? I’ve written many articles for independent media websites. Independent journalists from several countries wrote articles for other media websites. I’ve been interviewed on many podcasts. I arranged to send letters and emails to several thousand people in relevant organizations. Two documentaries detailing the Parex and Citadele frauds were aired repeatedly on Latvian television (‘Jumts’) and ‘Jumts 2’), including interviews with me, evidence of the fraud, and statements by officials about the fraud. A third documentary by a different team has been completed and is starting distribution now. And, three thriller novels inspired by the fraud racket have already been written and published, all with different authors. Yet somehow the US Treasury doesn’t know what’s going on. Where does the US Treasury get information from, if not from whistleblowers, media articles, and television? The sad answer is that they talk with politically connected lobbyists who get fat consulting fees from foreign governments. The Blue Star Strategies Connection One such lobbyist who worked for Latvia and ABLV is Sally Painter at Blue Star Strategies. She became a high-profile lobbyist working for Ukrainian citizens Dmytro Firtash and Ivan Fursin, who controlled RosUkrEnergo in Ukraine and Trasta Komercbanka in Latvia. This was about helping Putin, through Yanukovich, control the Ukrainian government. Then, she was employed at Parex. I know her, and I know, at least for Parex, her function was to convince the US Treasury not to impose sanctions. She was an intermediary getting Hunter Biden on the board of Burisma of Ukraine. Blue Star Strategies was subpoenaed on suspicion that Burisma oligarch Mykola Zlochevsky was buying influence however so far nobody has been punished. And, Painter was intermediary getting former CIA agent Joseph Cofer Black on the board of Baltic International Bank of Latvia. She also secretly commissioned an article written by Anders Aslund of Atlantic Council praising ABLV. Another person who worked as consultant helping ABLV in Washington was Daniel Glaser, former US Treasury Assistant Secretary for Terrorist Financing. Maybe Glaser somehow convinced US Treasury that ABLV specifically and Latvia generally had a crack-down and clean-up against the money launderers even though there wasn’t a crack-down or a clean-up? And this leads us to a large hole in the defenses the United States: the modern practing of ‘box ticking’ exercises as a substitute for traditional law enforcement such as putting criminals in prison and seizing back stolen money. The Egmont Group of Financial Intelligence Units (‘FIUs’) was founded in 1995. In 2003, the Financial Action Task Force ‘FATF’ established by the G7 issued explicit recommendations for countries to set up FIUs. As a result, by 2004, the Egmont Group had 94 members. One of the members is the FIU in Latvia. The US Treasury sanctioned ABLV in early 2018 and Ilze Znotina became head of the Latvian FIU later in 2018 as part of a push by Latvia to give foreign governments the impression that Latvia is fighting money laundering. Znotina made a public comment when she joined the FIU that previously she had given information about irregularities at Parex Bank to Latvian authorities and the authorities ignored her. I was overjoyed at first, but soon the situation turned darker. Latvian banks submit tens of thousands of Suspicious Activity Reports (‘SARs’) to the FIU every year. The FIU claims to review most of those but not all because of budget and staffing limitations. Anyway it seems not to matter whether they review all or none of the SARs because rampant unpunished corruption, fraud, and money laundering continue. For example, the FIU appears unaware that the EBRD investments in Parex and Citadele weren’t real. They appear unaware of connections between money laundering at those two banks and three other key banks: ABLV, Ukio, and Danske. They appear unaware of Latvia’s ‘OIK’ system whereby intermediaries are inserted between payments from electricity consumers and the Latvenergo electricity utility. Some of those intermediaries are from the same Latvian Proxy Network of companies originally set up by an agent called International Overseas Services, which provided the thousands of shell companies used by Parex and ABLV. The FIU appears unaware of the much-discussed ‘Construction Cartel’ in Latvia which overcharges the government on infrastructure projects. And, to give the clearest if not the largest example, the FIU appears unaware that Solaris Bus of Poland is bribing Dombrovskis’ political party. That was one part of my original whistleblowing, which I managed to get into one Latvian newspaper in 2007. The Solaris bribery was discovered a second time by the US FBI and explained in a US Department of Justice settlement in 2010. And, the bribery was discovered a third time by Polish authorities in 2018. Meanwhile, the bribery had been moved from Parex to Citadele and then to the European Investment Bank as the amounts kept getting larger. This gives me an impression of the FIU as a room full of people wearing ties looking through stacks of SARs and ticking boxes while somehow blind to newspaper headlines. Last but not least, something Znotina and the FIU were not interested in was the nine million euros transferred by a Cyprus company controlled by a Russian person who connected with Putin through ABLV and Danske Estonia to Anda Karina. Full details of this were leaked in 2019. Karina is the wife of Krisjanis Karins, who was Minister of the Economy at the time of my whistleblowing and who, by 2019, had become Prime Minister. He is in the same political party as Dombrovskis. I know Karins and Karina personally, and one reason why I chose to become a whistleblower against Parex years earlier was because I believed Karins would use the information to stop the fraud. Znotina and Karina are openly known to be long-time personal friends. In 2022, Znotina left from the FIU. Currently, she works for an organization called AML Intelligence. Both with her previous job and her current job, she has been a regular speaker at international anti-money-laundering conferences talking about the supposedly excellent work Latvia’s FIU is doing. This makes her similar to Dombrovskis who, after signing the fake sale of a Parex stake to the EBRD, went on an international speaking tour to tell people at conferences about how he rescued Latvia. The US Treasury should assign some fresh people to look at the situation in Latvia. When Latvia reacted to the disappearance of Parex assets by secretly paying the EBRD to pretend to invest, this was a red flag. When Latvia continued secretly paying the EBRD to protect Citdele, this was another red flag. When the US Treasury sanctioned ABLV and the proposed independent administrator was shot dead with a Kalashnikov in broad daylight in Riga and the Latvian government reacted by allowing ABLV to ‘self-liquidate,’ this was not a clean-up. Also, the ‘self-liquidation’ never happened. ABLV was only partly liquidated by transferring some assets to Citadele. Also, paying Washington lobbyists while funding an FIU that is unaware of major criminal rackets isn’t a clean-up. The US Treasury has the power to tell Latvia and the EBRD to correct their accounting back to 2009 when the EBRD-Parex deal was signed. This can be the beginning of a real clean-up, and the whole world, including the United States, Europe, and especially Ukraine, will become safer. Share Information If you have any information regarding this report and the persons, companies, or activities mentioned, please let us know via our whistleblower system, Whistle42. Share Information with FinTelegram CategoriesFinCEN Money Laundering ticker Whistleblower

Gurbir S. Grewal, the former Director of the Division of Enforcement at the U.S. Securities and Exchange Commission (SEC), has left his position to join Milbank LLP, one of the most innovative and prestigious law firms globally. This transition from his high-profile regulatory role to private practice is likely to have lasting implications, particularly on the SEC’s enforcement strategy in the crypto sector. Key Implications Regulatory Shifts: With Grewal’s intimate knowledge of the SEC’s enforcement priorities, particularly in digital assets, his move to Milbank LLP (website) could alter the legal landscape for crypto firms seeking to navigate the regulatory environment. Insider Knowledge: Grewal’s in-depth understanding of the SEC’s operations, particularly in crypto cases, may give Milbank LLP a strategic advantage in advising clients facing enforcement actions or regulatory uncertainty. Strategic Influence: His departure may lead to changes in the SEC’s crypto strategy, depending on the vision of his replacement and how aggressively the agency wants to pursue enforcement in this evolving space. Career Transition Gurbir S. Grewal’s exit from the SEC marks the end of his influential role overseeing enforcement actions, where he was pivotal in shaping the agency’s approach to digital assets and market compliance. His move to Milbank LLP signals a shift from public service to private sector practice, bringing his regulatory expertise to one of the world’s leading law firms. Crypto Strategy at a Crossroads As the crypto industry has been a key focus for the SEC in recent years, Grewal’s departure leaves questions about the future of the regulator’s stance on digital assets. Under his leadership, the SEC pursued an aggressive enforcement strategy, initiating actions against various crypto firms for violations related to unregistered securities offerings and fraud. His transition may create an opportunity for a more tempered approach or could pave the way for increased scrutiny, depending on his successor’s priorities. The loss of Grewal’s leadership comes at a critical time for the SEC as the agency grapples with defining the regulatory boundaries for the crypto industry. This leadership change could have a ripple effect, potentially softening or intensifying enforcement efforts in the years ahead. Share Information with FinTelegram CategoriesJob Movements People Radar SECTagsGurbir S GrewalMilbank

Pig butchering scams are a devastating form of cybercrime that blend romance and investment fraud, leaving victims emotionally and financially shattered. These sophisticated operations, run by organized crime syndicates, often exploit human trafficking victims as unwilling scammers. The perpetrators meticulously cultivate trust over months, luring targets into fraudulent cryptocurrency investments through fake platforms. Overview of Pig Butchering Scams With reported losses of $2.5 billion in the US alone in 2022, these scams have exploded to account for an estimated 40% of all cybercrime losses globally. As they continue to evolve, employing AI and targeting diverse demographics, pig butchering scams pose a formidable challenge to law enforcement and cybersecurity experts worldwide. Pig butchering is a sophisticated form of cybercrime that has become increasingly prevalent in recent years. The term “pig butchering” is derived from the Chinese phrase “sha zhu pan,” which translates to “butchering a pig.” This metaphor refers to the process of fattening up a victim before slaughter, much like how scammers cultivate relationships with their targets before exploiting them financially. Pig butchering scams are often described as a type of crypto-investment fraud. Victims are typically persuaded to invest in cryptocurrency or forex trading schemes. Key Characteristics Long-term relationship building: Scammers invest significant time and effort in developing trust with their victims, often over weeks or months. Romance and investment hybrid: The scam combines elements of romance scams with fraudulent investment schemes. Use of social media and dating apps: Perpetrators often initiate contact through these platforms to find potential victims. Cryptocurrency focus: Victims are typically persuaded to invest in cryptocurrency or forex trading schemes. Scam Mechanics Initial contact: Scammers reach out to victims through social media, dating apps, or even wrong number texts. Trust building: They engage in friendly conversations and gradually build rapport with the victim. Introduction of investment opportunity: The scammer eventually introduces a seemingly lucrative investment opportunity, often involving cryptocurrency. Fake investment platforms: Victims are directed to sophisticated but fraudulent investment websites or apps. Encouraging larger investments: As victims see apparent gains, they’re encouraged to invest more money. Preventing withdrawals: When victims try to withdraw funds, they’re met with various obstacles or additional fees. Scale and Impact Financial losses: In 2022, pig butchering scams resulted in reported losses of $2.5 billion in the US alone. Crypto research company Chainalysis reported that one of the largest single wallets associated with scamming, linked to Myanmar’s KK Park pig butchering compound, has netted over $100 million so far in 20244 Rapid growth: These scams have experienced exponential growth, with some estimates suggesting they now account for 40% of all cybercrime losses globally. Victim demographics: While initially targeting Asian communities, these scams now affect a wide range of individuals across various demographics. It’s important to note that these figures are likely underestimates, as many victims do not report their losses. Some sources suggest that as few as 15% of victims report these scams to the police. The true scale of losses from pig butchering scams is likely much higher than the reported figures. Scam Operations Organized crime syndicates: Many of these operations are run by large, sophisticated criminal organizations. Human trafficking connection: Some scam operations involve human trafficking, with victims forced to work as scammers in compounds in Southeast Asian countries. Use of AI and scripts: Scammers often utilize AI-generated scripts and images to enhance their efficiency and believability. Prevention and Mitigation Increased awareness: Law enforcement and cybersecurity experts are working to raise public awareness about these scams. Challenges in prosecution: The international nature of these crimes makes prosecution difficult. Platform responsibility: There’s a growing call for social media and dating platforms to implement better safeguards against these scams. Conclusion Pig butchering scams represent a significant and evolving threat in the cybercrime landscape. Their sophisticated nature, combining social engineering with technology, makes them particularly dangerous. As cybercrime analysts, it’s crucial to continue monitoring the evolution of these scams and develop more effective strategies for prevention and victim support. CategoriesPig Butchering ticker

FinTelegram has reported on the fraudulent crypto MLM schemes OMNIA Tech and OmegaPro several times in the past. This week, various media outlets have reported the arrest of Robert Velghe in Turkey, who has played a crucial role in both scams. The OmegaPro MLM scam is believed to have stolen around $4 billion from victims worldwide. Here is our update with a request for additional information from whistleblowers. OmegaPro Key Points: OmegaPro, a global crypto-based Forex Ponzi scheme, has defrauded victims of an estimated $4 billion since 2018. Two key figures, Andreas Szakacs and Robert Velghe, were arrested in Turkey following high-profile raids. Velghe, previously involved in the crypto-MLM scam OMNIA Tech, continues to attract attention for his role in multiple other crypto-MLM scams. Short Narrative: Founded in 2018 and registered in the Caribbean, OmegaPro presented itself as a high-return investment platform using an “automated trading” algorithm. Promising investors returns of up to 300% over a maximum of 16 months, OmegaPro was actually a Ponzi scheme that paid early investors using funds from new victims. The scheme began to unravel in late 2022, with the platform ceasing withdrawals by November, and disappearing completely by July 2023. Recent developments have brought the scheme back into the spotlight with the July 2024 arrest of OmegaPro co-founder Andreas Szakacs, a Swedish-Turkish national, in Istanbul. Following this, Robert Velghe, a key executive involved in the scam, was arrested in Turkey on September 5, 2024, after attempting to evade detection by Turkish authorities. Velghe, who was previously connected to OMNIA Tech—a notorious MLM scam that defrauded thousands of small investors—continues to face legal scrutiny for his involvement in large-scale crypto frauds. Turkish authorities have uncovered substantial evidence linking OmegaPro’s operations to the infamous OneCoin scam, with transactions worth $160 million traced from seized wallets. OmegaPro is now estimated to have caused total victim losses of up to $4 billion. Actionable Insight: OmegaPro executive Robert Velghe One detail that caught our attention was the mistaken identity of Robert Velghe. Media sources referred to Velghe as a Dutchman, but he was, in fact, an Austrian resident. Velghe’s involvement in OMNIA Tech, an earlier Ponzi scheme that defrauded thousands, has raised questions about his continued role in the MLM fraud space. This case urgently calls for law enforcement and regulators to tighten their oversight. OmegaPro, along with scams like IcomTech, OneCoin, and USI Tech, demonstrates how cryptocurrencies have become tools for global fraud. Read our reports on Robert Velghe here. Call for Information: We urge victims or anyone with relevant information about OmegaPro or other crypto or MLM fraud schemes to come forward as authorities continue their investigation into the multi-billion-dollar fraud. Share Information with FinTelegram CategoriesMLM SchemesTagsAndreas SzakacsIcomTechOmegaproOMNIA TechOnecoinRobert VelgheUSI Tech

iComTech was one of the numerous fraudulent MLM schemes that used cryptocurrencies as a means of fraud in parallel with the crypto hype of 2017/18. David Carmora started IcomTech in approximately 2018. The scheme promised to earn its victims high profits and guaranteed daily returns that would double their money within six months. Carmora received a sentence of 121 months in prison. Key Points: David Carmona, founder of crypto MLM scam IcomTech was sentenced to 121 months in prison for running a crypto Ponzi scheme. The scheme promised working-class victims financial freedom through cryptocurrency trading and mining. Victims lost their investments, while Carmona and co-promoters enriched themselves through fraudulent means. Short Narrative: David Carmona, the mastermind behind IcomTech, a fraudulent crypto Ponzi scheme, has been sentenced to over 10 years in federal prison. U.S. District Judge Jennifer L. Rochon handed down the sentence on October 4, 2024. IcomTech, which operated between 2018 and 2019, targeted working-class individuals with promises of guaranteed daily returns and doubled investments within six months. However, instead of investing in crypto mining and trading as promised, Carmona and his associates used the funds to pay earlier victims and finance their own luxury lifestyles. Read our reports on IcomTech here. Carmona and his team traveled across the U.S. and abroad, hosting flashy expos and community events to lure in more victims. These events, characterized by the display of wealth—expensive cars and designer clothes—created a false image of success. Victims invested through cash, checks, wire transfers, and cryptocurrency, only to watch their supposed profits accumulate on a fake online portal. Withdrawals were impossible for most, and by the end of 2019, IcomTech collapsed, leaving victims with nothing. Actionable Insight: This case highlights the critical need for vigilance in the cryptocurrency space. IcomTech was just one of many crypto MLM scams that defrauded tens of thousands of naive victims. Regulators and investors alike must scrutinize such schemes and avoid falling prey to similar scams. Call for Information: If you have any information about fraudulent crypto, or MLM schemes or other forms of scams, please share it with us via our whistleblower system, Whistle42. Share Information with FinTelegram CategoriesCrypto Schemes MLM SchemesTagsDavid CarmonaIcomTech

The AI pioneer OpenAI under Sam Altman closed its long-awaited funding round, announcing that it raised $6.6 billion at a $157 billion post-money valuation. OpenAI’s $157 billion valuation makes it one of the most valuable startups globally, alongside SpaceX and ByteDance. Will Thrive Capital, Microsoft, and Nvidia’s backing help steer the ship through the challenges ahead? Stay tuned for more. Key Points OpenAI raises $6.6 billion, reaching a valuation of $157 billion. Thrive Capital led the round, with Microsoft, Nvidia, SoftBank, and others participating. Thrive Capital, the venture capital firm headed up by Josh Kushner, which put in $1.3 billion. Microsoft, OpenAI’s largest backer, put in about $750 million on top of the $13 billion it had already invested in the startup. Valuation surged from $80 billion earlier in 2024 after being valued at $29 billion in 2023. The company expects a revenue of $3.7 billion and losses of approximately $5 billion for 2024. Short Narrative OpenAI has secured $6.6 billion in its latest funding round, propelling the company’s valuation to a staggering $157 billion. Thrive Capital, alongside heavyweights Microsoft and Nvidia, took a lead role in this round, signaling continued bullish sentiment in generative AI’s future. SoftBank and other prominent firms also participated. This comes just months after OpenAI’s valuation leaped to $80 billion, following the explosive growth of ChatGPT. Despite rapid revenue growth—$300 million in September alone—the company faces immense operational costs, largely due to its reliance on Nvidia’s GPUs to fuel its AI models. OpenAI is expected to lose $5 billion this year, despite projected sales of $11.6 billion in 2025. Actionable Insight Investors are betting big on AI infrastructure, and OpenAI’s valuation highlights both the opportunities and risks in the space. The heavy capital demands make partnerships with firms like Microsoft essential for OpenAI’s sustainability, but the high burn rate suggests that profitability is still a distant goal. Call for InformationHow will OpenAI balance massive funding rounds with operational losses? What strategic moves will mitigate financial pressure moving forward? Share Information with FinTelegram CategoriesFundraising tickerTagsByteDanceMicrosoftNvidiaOpenAISoftbankSpaceXThrive Capital

Keith Schembri, former Chief of Staff of the Maltese Prime Minister, is accused of money laundering and corruption. His legal team has requested that forensic expert Samuel Sittlington, Police Commissioner Angelo Gafa, and former Deputy Commissioner Alexandra Mamo testify to clarify alleged negotiations for consultancy services during the investigation. The defense calls into question the expert’s independence, further complicating an already contentious trial. Key Points Keith Schembri, former Chief of Staff of the Maltese prime minister Joseph Muscat, questions the impartiality of forensic expert Samuel Sittlington in a multi-million euro money laundering case. Schembri and business associates are accused of laundering €4.66 million in a printing press deal linked to Progress Press. Allegedly, they paid the money in backhanders to Adrian Hillman and Vince Buhagiar, former managing directors of Allied Newspapers. Additionally, Schembri is involved in separate legal proceedings concerning the Vitals hospitals’ privatization deal. Allegations arise over Sittlington’s negotiations with the Police Commissioner for paid consultancy services during his investigation. Short Narrative Keith Schembri, ex-chief of staff to Malta’s former prime minister, his father Alfio, business partner Malcolm Scerri, accountant Robert Zammit, and a number of Schembri’s companies are accused of financial crimes in relation to the sale of printing machines to Progress Press. They were charged in March 2021, pleading not guilty to all the charges. Schembri was arrested in 2021 but later released on bail. Allegedly, €4.66 million were paid in backhanders to Adrian Hillman and Vince Buhagiar, two former managing directors of Allied Newspapers, the parent company of Progress Press, and publishers of Times of Malta. They are also facing court proceedings. Schembri, former Prime Minister Joseph Muscat, and other high-profile individuals are also charged over their alleged involvement in the now-annulled Vitals hospitals’ privatization deal. The forensic expert, Samuel Sittlington, was appointed in 2020 and testified as a prosecution witness in both the Vitals case and the Progress Press case. After Sittlington finished testifying on Thursday, Schembri filed an urgent application challenging the impartiality of Sittlington. In their filing, Schembri’s legal team raised concerns over communications between forensic expert Samuel Sittlington and the Maltese Police Commissioner, where the expert was allegedly in talks for a lucrative consulting deal while investigating Schembri’s case. This development adds a new layer of controversy to a high-profile case that already includes charges against Schembri, his business associates, and top media executives. Actionable Insight This case underscores the need for transparency and clear boundaries between investigators and public officials in financial crime cases. The potential conflict of interest raised by Schembri’s legal team could shift the case’s direction, highlighting risks in forensic oversight. Call for Information If you have any information about money laundering or corruption in Malta or other jurisdictions, please report it to us via our whistleblower system, Whistle42. Share Information with FinTelegram CategoriesCourt Cases Malta Money Laundering tickerTagsAdrian HillmanAllied NewspaperAngelo GafaJoseph MuscatKeith SchembriMalcolm SerriRobert ZammitSamuel SittlingtonVince Buhagiar

Erik Rosenblatt, a senior leader at US stablecoin issuer Circle, will represent the company on the Illicit Virtual Asset Network (IVAN) board. Prior to joining Circle, Rosenblatt spent over two decades as a special agent with the U.S. Department of Homeland Security and the U.S. Department of the Treasury. As part of IVAN, Circle will have a voting role in determining the network’s priorities and membership. Key Points Circle secures a three-year seat on the board of the new Illicit Virtual Asset Network (IVAN), a public-private partnership to counter criminal activity. IVAN unites governments, law enforcement, and industry leaders to address real-time threats from transnational financial crime. Circle’s role emphasizes its commitment to regulatory compliance and fighting illicit finance through innovative blockchain technology. Short Narrative Circle, the issuer of the USDC stablecoin, has been appointed to a three-year board position in the newly established Illicit Virtual Asset Network (IVAN). IVAN, a global public-private partnership, brings together governments, law enforcement agencies, and industry players to combat illicit finance in the virtual asset space. Circle’s Chief Compliance and Risk Officer, Mandeep Walia, emphasized the company’s dedication to being a regulatory-first institution, underlining the importance of AML and CFT controls in the adoption of digital assets. Circle’s representation on IVAN’s board will help shape the network’s strategic direction, focusing on identifying and countering criminal threats in real-time. Actionable Insight This appointment reflects Circle’s increasing involvement in regulatory initiatives, signaling that compliance-focused digital asset companies can play a key role in deterring financial crime. Industry participants should expect growing public-private collaboration to strengthen financial transparency. Call for Information Stakeholders in digital asset regulation and compliance are encouraged to share insights on new AML/CFT strategies and blockchain innovations that can aid in deterring illicit finance. Share Information with FinTelegram CategoriesCrypto Compliance Money LaunderingTagsCircleErik RosenblattIllicit Virtual Asset NetworkIVAN

The U.S. Department of Justice and Department of Treasury have taken significant action against Evil Corp, a Russia-based cybercriminal group responsible for developing and distributing malware that has stolen over $100 million from banks and financial institutions across 40 countries. Evil Corp appears to operate as a family enterprise, with multiple family members involved. Key Points: Sanctions Imposed: The Treasury’s Office of Foreign Assets Control (OFAC) has designated numerous individuals and entities associated with Evil Corp. International Cooperation: This action was coordinated with the United Kingdom and Australia. Russian Government Connection: Evil Corp’s activities have been linked to the Russian Federal Security Service (FSB). Financial Impact: All U.S.-based assets of the designated individuals and entities are now blocked. Evil Corp’s Leadership and Key Members Maksim Yakubets: Leader of Evil Corp, linked to the Russian FSB. Igor Turashev: Key administrator of the Dridex malware. Denis Gusev: Senior member controlling six associated businesses. Viktor Grigoryevich Yakubets: Father of Maksim, accused of money laundering. Sergey Yakubets: Brother of Maksim. Eduard Benderskiy: Former FSB officer and father-in-law of Maksim Yakubets. Aleksandr Viktorovich Ryzhenkov: Core member, developer of ransomware strains. The US DOJ recently unsealed an indictment charging him with using the BitPaymer ransomware variant to attack and extort numerous victims. Sergey Viktorovich Ryzhenkov: Brother of Aleksandr, involved in malware development. Additional Core Members: Aleksei Bashlikov Ruslan Zamulko David Guberman Carlos Alvares Georgios Manidis Tatiana Shevchuk Azamat Safarov Gulsara Burkhonova Associated Businesses: Biznes-Stolitsa, OOO Optima, OOO Treid-Invest, OOO TSAO, OOO Vertikal, OOO Yunikom, OOO Evil Corp’s Operations Evil Corp operates a sophisticated cybercrime operation: They use phishing emails to spread malware like Dridex and BitPaymer ransomware. Once a system is infected, they steal banking credentials from victims. These credentials are used to fraudulently transfer funds to accounts they control. A network of money mules is employed to move the stolen funds. Family Connections and Organizational Structure Evil Corp appears to operate as a family enterprise, with multiple family members involved: The Yakubets family (Maksim, Viktor, and Sergey) forms the core leadership. The Ryzhenkov brothers (Aleksandr and Sergey) play crucial roles in malware development. Eduard Benderskiy’s connection to the FSB suggests potential state involvement. This family-based structure may contribute to the group’s resilience and ability to evade law enforcement. Call for Information FinTelegram urges insiders and whistleblowers with additional information about Evil Corp, its members, or related cybercriminal activities to come forward. We are particularly interested in: Details about the roles and activities of the named individuals Information on the associated businesses and their operations Insights into the group’s connections with Russian state actors Knowledge of ongoing or planned cybercriminal activities To securely share information about any of the mentioned individuals or entities, please use our whistleblower system, Whistle42. Your anonymity and safety are our top priorities.By providing information, you can help combat cybercrime and protect financial systems worldwide. Every piece of information, no matter how small it may seem, could be crucial in further exposing and disrupting these harmful operations. Share Information with FinTelegram CategoriesCybercrime Russia tickerTagsAleksandr Viktorovich RyzhenkovDenis GusevEduard BenderskiyIgor TurashevMaksim YakubetsSergey Viktorovich RyzhenkovSergey YakubetsViktor Grigoryevich Yakubets

The U.S. Securities and Exchange Commission (SEC) is set to experience a significant leadership change as Enforcement Director Gurbir S. Grewal announces his departure. Grewal oversaw a period of heightened regulatory activity specifically targeting the crypto sector. Under his leadership, the SEC Filed high-profile lawsuits against major cryptocurrency exchanges, including Binance and Coinbase. Grewal’s Tenure & Hardline Approach During his time as the SEC’s top enforcement official, Grewal oversaw a period of heightened regulatory activity and record-breaking enforcement actions. His tenure was characterized by: Aggressive Crypto Enforcement: Grewal led the SEC in pursuing a more assertive approach to securities law violations. He played a crucial role in the agency’s tough stance against the crypto industry! He pursued numerous enforcement actions against crypto companies. Hard-Line Approach: Grewal’s approach to cryptocurrency regulation was characterized by its stringency and marked by an aggressive enforcement strategy that “tormented” the crypto industry, as described by some observers. Significant Impact on the Industry The enforcement actions led by Grewal had far-reaching consequences: The lawsuits against major exchanges like Coinbase and Binance in June 2023 were considered notable highlights of his term. These actions significantly influenced the regulatory landscape for cryptocurrency companies operating in the United States. Industry Recognition The crypto industry and legal observers acknowledged Grewal’s impact. Terrence Yang, a strategic adviser to Swan Bitcoin, stated, “The bottom line is that the SEC did what it needed to do in response to the scams in crypto,” attributing this approach to Grewal’s leadership.” While the long-term effects of Grewal’s approach remain to be seen, his departure could potentially signal a change in the SEC’s stance towards the crypto industry. However, the precedents set during his tenure are likely to continue influencing the regulatory environment for cryptocurrency companies in the near future. The next Enforcement Director may bring a different approach or priorities to the role, potentially shifting the SEC’s enforcement strategy. Share Information with FinTelegram CategoriesJob Movements People Radar SEC tickerTagsGurbir S Grewal

The U.S. Justice Department (DOJ) unsealed an indictment charging Russian national Aleksandr Viktorovich Ryzhenkov (Александр Викторович Рыженков) with using the BitPaymer ransomware variant to attack numerous victims in Texas and throughout the U.S. and hold their sensitive data for ransom. According to the indictment, beginning in at least June 2017, Ryzhenkov allegedly gained unauthorized access to the information stored on victims’ computer networks. Key Points Russian national Aleksandr Ryzhenkov was charged with ransomware attacks on U.S. companies using the BitPaymer variant. He is wanted for his alleged involvement in ransomware attacks and money laundering activities. Ryzhenkov, a leading member of the Russian cybercrime organization Evil Corp, and his conspirators demanded millions in ransom by encrypting victims’ sensitive data. The U.S. Treasury Department added Ryzhenkov to its list of specially designated nationals, blocking U.S. financial transactions involving him. Short Narrative The U.S. DOJ has indicted Russian national Aleksandr Viktorovich Ryzhenkov for a series of ransomware attacks targeting companies in Texas and across the U.S. Using the BitPaymer ransomware, Ryzhenkov allegedly gained unauthorized access to computer systems, encrypted sensitive data, and demanded ransom to prevent the information from being released publicly. Despite the criminal’s attempts to extort millions, U.S. authorities have made it clear that cybercriminals will face serious consequences, adding Ryzhenkov to the Treasury Department’s sanctions list and blocking his access to U.S. financial systems. Actionable Insight Ryzhenkov’s indictment underscores the growing ransomware threat from Russian-linked hackers. Businesses must prioritize cybersecurity to avoid becoming targets, as attacks are costly whether or not a ransom is paid. Call for Information If you have any information about the Russian Evil Corp cybercrime organization, its members, and activities, please share it with us through our whistleblower system, Whistle42. Share Information with FinTelegram CategoriesCourt Cases Russia United States US DOJTagsAleksandr RyzhenkovAleksandr Viktorovich RyzhenkovBitPaymerEvil Corp

The UK neobank Starling Bank has been fined £29 million by the UK FCA for opening accounts for high-risk customers and failing to screen against full sanctions lists. Its rapid expansion outpaced its compliance measures, leaving significant gaps in its AML framework. Starling grew from approximately 43,000 customers in 2017 to 3.6 million in 2023. However, measures to tackle financial crime did not keep pace with its growth. Key Points FCA fines Starling Bank £29 million for severe anti-money laundering (AML) and sanctions failures. The neobank opened over 54,000 high-risk accounts despite FCA restrictions. Automated screening systems failed to capture the full sanctions list for years, heightening financial crime risk. Starling’s rapid growth outpaced its compliance controls, leaving the system exposed. Short Narrative The FCA has imposed a £29 million fine on Starling Bank for egregious lapses in its AML and financial sanctions screening. In 2021, following an FCA review of financial crime controls at challenger banks, significant concerns were identified regarding Starling Bank’s anti-money laundering (AML) and sanctions framework. As a result, the bank agreed to a regulatory requirement to cease opening new accounts for high-risk customers until its controls were improved. However, Starling did not comply with this requirement, and between September 2021 and November 2023, the bank proceeded to open over 54,000 accounts for 49,000 high-risk customers in violation of the FCA’s directive. This oversight has led to multiple breaches and exposed the financial system to criminal activity. Starling’s failure to adapt its compliance framework to match its rapid growth has sparked strong criticism from the FCA, with enforcement director Therese Chambers labeling the controls as “shockingly lax.” Actionable Insight The case highlights the risks of rapid growth without appropriate investment in compliance infrastructure. Banks, especially challenger banks, must prioritize AML and sanctions controls to avoid regulatory backlash and protect the integrity of the financial system. Call for Information Any whistleblowers or insiders with knowledge of further compliance breaches at Starling Bank or other financial institutions, fintechs, or paytechs are urged to come forward to assist in regulatory oversight. Report Compliance Violations to FinTelegram CategoriesFCA High-risk payment processors Money Laundering

The saga of Wildberries, Russia’s leading online marketplace, took a dramatic turn when a proposed merger with the Russ Group sparked a violent power struggle. The conflict pitted co-founders and former spouses Vladislav and Tatyana Bakalchuk against each other, with powerful backers on both sides. Chechen leader Ramzan Kadyrov supports Vladislav, and Dagestan billionaire Suleiman Kerimov backs Tatyana. Key Points Wildberries CEO Tatyana Kim confirms merger with Russ Group despite violent opposition. The new RWB platform aims to rival SWIFT, Amazon, and Alphabet in Russia’s ruble-based digital economy. Merger linked to Russia’s wartime asset redistribution benefiting Kremlin-connected figures. Kim’s ex-husband and Wildberries co-founder, Vladislav Bakalchuk, opposed the merger, leading to violent clashes. Short Narrative Wildberries, Russia’s largest online retailer (website), finalized its controversial merger with Russ Group, creating the RWB platform—a digital project positioned as a ruble-based alternative to international financial systems. CEO Tatyana Kim announced the deal’s completion in a video on her Telegram channel, stating, “we’re ready for new projects.” Despite Wildberries’ clear market dominance, the merger is widely seen as part of Russia’s wartime economic strategies, with Kremlin-linked officials involved in approving the deal. The violent opposition from Wildberries‘ co-founder and Kim’s ex-husband, Vladislav Bakalchuk, escalated into a fatal shootout in Moscow. Bakalchuk, alongside armed supporters, stormed Wildberries‘ Moscow HQ in protest of the merger. Two security guards were killed, the Russian TASS reported. Multiple felony charges, including murder, were filed against Bakalchuk and several others involved in the incident. Kim, now backed by Russian law enforcement, vows justice. Actionable Insight The merger of Wildberries and Russ Group illustrates how Russia’s economic elite are realigning assets in response to geopolitical pressures. Investors and analysts should monitor the RWB platform closely as it could signal Russia’s intent to bypass global financial systems like SWIFT. Analysts described the merger as unbalanced. Wildberries generated 538.7 billion rubles ($2.7 billion) in revenue last year, compared to Russ Group’s 27.9 billion rubles ($300 million). According to The Times of Moscow, the merger could be part of Russia’s wartime redistribution of assets, benefiting business figures linked to the Kremlin. Russian media reported that Putin’s cabinet signed off on the merger, which was overseen by Deputy Chief of Staff Maxim Oreshkin. Allegedly, Russia’s president Putin instructed Oreshkin to support the deal. Call for Information If you have any information about companies and activities in Russian cyberspace, please share it with us via our whistleblower system, Whistle42. Share Information with FinTelegram CategoriesPeople Radar ticker TransactionsTagsRamzan KadyrovRWBSuleiman KerimovTatyana KimVladislav BakalchukWildberries

Italy’s top anti-money laundering (AML) authority, UIF, has launched a targeted initiative aimed at gambling companies due to a significant decrease in suspicious activity reports (SARs) filed by the sector. This move comes in response to a concerning 25% drop in SARs from gaming services during the first half of 2024 compared to the same period in 2023. Key Points: Targeted Action: The Financial Intelligence Unit (FIU) of Italy is specifically focusing on gambling firms that are not submitting an adequate number of SARs. Significant Decline: The gaming sector witnessed a 25% reduction in SAR filings over a six-month period, raising red flags for the AML authority. Timeframe: The comparison is made between the first half of 2024 and the corresponding period in 2023. Compliance Insight: This development highlights the ongoing challenges in combating money laundering within the gambling industry. The Italian FIU’s proactive stance underscores the importance of maintaining vigilant reporting practices to detect and prevent financial crimes. As the situation unfolds, it will be crucial to monitor how gambling firms respond to this increased scrutiny and whether it leads to improved compliance and reporting standards across the sector. Share Information with FinTelegram CategoriesFIU Italia Money Laundering

The CFD broker IC Markets is challenging a €200,000 fine imposed by CySEC in July 2024. The company’s CEO, Andrew Budzinski, has hinted at divesting from Cyprus and expanding operations elsewhere, possibly in Dubai. While Cyprus has long been a popular hub for forex and CFD brokers, changing regulatory landscapes and shifting industry trends are putting pressure on its status as a financial center. Key Points CySEC imposed a €200,000 fine on IC Markets in July 2024. In Sept 2024, IC Markets received another €50,000 fine. IC Markets is disputing the ruling, claiming CySEC based its decision on testimony from a disgruntled former employee without considering other evidence. IC Markets‘ CEO, Andrew Budzinski, has implied the company will likely divest from Cyprus and expand operations elsewhere, possibly in Dubai, TradeInformer reports. The IC Markets case move could set a precedent for other brokers to follow suit. Short IC Markets Narrative IC Markets has increasingly conducted its operations through offshore entities in recent years, using these structures to engage with retail clients in Europe and the EU. This approach has resulted in warnings from financial regulators in several jurisdictions. Most recently, IC Markets was issued an additional fine of €50,000, following a previously reported fine of €200,000 in July 2024, indicating significant regulatory compliance issues. Given this context, it would not be unexpected if IC Markets were to consider exiting Cyprus. Read our IC Markets reports here. The Cyprus Legacy Cyprus has historically faced challenges as a financial regulator, particularly during the rise of binary options, which were once touted as a FinTech innovation. Numerous binary options platforms, primarily operated by Israeli entities, established themselves in Cyprus, where regulatory oversight by CySEC was often considered lenient. Many of these platforms engaged in fraudulent activities, resulting in hundreds of thousands of victims globally. This has led to numerous legal actions, including convictions and prison sentences in Europe and North America, with some cases still ongoing. Following the ban on binary options, the focus of the FinTech industry in Cyprus shifted to online brokers, payment processors, and the cryptocurrency sector. Cyprus has since emerged as a significant hub for high-risk payment services and potential money laundering activities, particularly attracting Russian schemes, which were further supported by the now-defunct Golden Passport program. Meanwhile, Dubai has surpassed Cyprus as a preferred jurisdiction for high-risk payment processors and crypto service providers, largely due to its lack of extradition agreements with many regions, including the EU and the U.S. This has made Dubai increasingly attractive to operators in the crypto payment space, including those facilitating investment scams, illegal trading platforms, and unregulated gambling services. Key Data IC Markets BrandIC MarketsDomainswww.icmarkets.eu,www.icmarkets.com/global (offshore)www.icmarkets.com/intl (offshore)www.icmarkets.scwww.icmarkets.ruwww.icmarketsgroup.comwww.icmarketpro.comwww.icm-market.cwww.marketpro.comwww.icmarketspartners.comwww.internationalcapital-markets.comLegal entitiesRaw Trading Ltd (Seychelles)IC Markets (EU) Ltd (Cyprus)IC Markets (UK) Ltd (UK)IKBK Holdings Ltd (Cyprus)IC Markets Ltd (Bahamas)International Capital Markets Pty Ltd (Australia)Related individualsAndrew Budzinski (LinkedIn)Linda Mackey (LinkedIn)Crystal McClain-Turnquest (LinkedIn)Edward AndersonRodney MartenstynMark PayneAndrew Rapp Regulatory regimesIC Markets (EU) Ltd with CySEC license no 362/18Raw Trading Ltd with FSA Seychelles license no SD018IC Markets Ltd Securities Commission of the Bahamas, license no SIA-F212International Capital Markets Pty Ltd with ASIC license no 335692LeverageUp to 1:500Payment processorsSettleGo Solutions Ltd (OpenPayd), JPMorganClear Bank, Citibank N.A.Neteller, Skrill, Rapid TransferSofort (Klarna)WarningsConsob, UK FCA I, UK FCA II Share Information If you have any information about IC Markets, its activities or partners, please share it with us through our whistleblower system, Whistle42. Share Information with FinTelegram CategoriesCySEC Offshore Broker tickerTagsAndrew BudzinskiAndrew RappCrystal McClain-TurnquestIC MarketsIC Markets EUIC Markets UKIKBK HoldingsLinda MackeyMark PayneRaw TradingRodney Martenstyn

The U.S. Securities and Exchange Commission (SEC) has taken decisive action against Olayinka Oyebola and his PCAOB-registered accounting firm, Olayinka Oyebola & Co., for their alleged role in a massive securities fraud scheme. The SEC’s complaint accuses Oyebola and his firm of aiding and abetting fraud perpetrated by Mmobuosi Odogwu Banye and three U.S. companies under his control, collectively known as the Tingo entities. Charges and Allegations The SEC has charged Olayinka Oyebola and his PCAOB-registered accounting firm, Olayinka Oyebola & Co., with aiding and abetting a massive securities fraud. The fraud was allegedly perpetrated by Mmobuosi Odogwu Banye (aka Dozy Mmobuosi) and three U.S. companies he controlled, referred to as the Tingo entities. The SEC recently obtained a $250 million final judgment against Mmobuosi and the Tingo entities. Oyebola and his firm are accused of: Deliberately failing to act upon learning about fake audit reports bearing Oyebola’s signature in SEC filings Making material misstatements to the then-auditor of one of the Tingo entities Helping Mmobuosi conceal that the audit reports were fake These actions allegedly enabled his client Mmobuosi Odogwu Banye and the Tingo entities to carry out a multi-year scheme to inflate financial performance metrics and defraud investors worldwide. The SEC is seeking civil penalties, permanent injunctive relief, an order permanently barring Oyebola and his firm from acting as auditors or accountants for U.S. public companies, and a prohibition from providing substantial assistance in preparing financial statements filed with the SEC. Actionable Insight: The case highlights the critical role auditors play in ensuring financial transparency. Gatekeepers like Oyebola must uphold their responsibilities or face severe legal consequences. Compliance teams should reinforce stringent audit verification procedures to prevent fraudulent activities from slipping through regulatory cracks. Call for Information: Are you aware of financial professionals neglecting their duties or assisting in fraudulent activities? FinTelegram is committed to uncovering such misconduct. Share your tips to help maintain transparency and integrity in financial markets. Share Information With FinTelegram CategoriesAuditors Investment Schemes SECTagsDozy MmobuosiOdogwu Banye MmobuosiOlayinka Oyebola

In the UK, Olumide Osunkoya pleaded guilty to 5 offenses, becoming the first UK conviction of its kind for offenses relating to the operation of crypto ATMs. He is due to be sentenced for running multiple crypto ATMs without FCA registration, creating and using false documents, and possessing criminal property. Osunkoya illegally operated a network of at least 11 crypto ATMs, which processed more than £2.6m in crypto transactions. Key Points: The Nigerian national and UK resident Olumide Osunkoya pleaded guilty to running at least 11 illegal crypto ATMs across the UK, processing over £2.6 million ($3.5 million) in transactions between 29 December 2021 and 8 September 2023. The FCA confirmed there are no legal crypto ATM operators in the UK. Osunkoya faces up to 14 years in prison for various offenses, including forgery, counterfeiting, and possession of criminal property. Short Narrative: In a landmark case, Olumide Osunkoya became the first individual in the UK to be convicted of running unregistered crypto ATMs. Operating 11 machines across local convenience stores, Osunkoya processed over £2.6 million ($3.5 million) in crypto transactions between December 2021 and September 2023. Despite being denied FCA registration, he continued his activities, generating profit margins as high as 60% per transaction. Osunkoya’s ATMs performed no customer due diligence, raising serious concerns about money laundering and tax evasion. The court heard evidence that criminals were likely among the users, exploiting these machines to launder illicit funds. Osunkoya even operated under a false alias to evade regulatory oversight. Charged with multiple offenses, including unregistered crypto ATM operations and forgery, Osunkoya faces up to 14 years in prison. Sentencing will take place at Southwark Crown Court. Compliance Insight: This case underscores the importance of regulatory compliance in the crypto space, particularly for operators of high-risk services like crypto ATMs. The FCA’s strong stance against unregistered crypto activity signals increased enforcement actions, and firms must ensure they are meeting all regulatory requirements to avoid severe penalties. The conviction of Olumide Osunkoya marks a significant milestone for UK regulators in their fight against illegal crypto activity. With the FCA confirming that no legal crypto ATMs are currently operating in the UK, businesses and consumers alike must remain vigilant. Crypto remains a largely unregulated, high-risk space, and both operators and users must understand the potential legal consequences of bypassing compliance requirements. The FCA’s warning is clear: unregistered crypto ATMs are a tool for criminals, and those operating or using them risk severe legal penalties. Call for Information: Are you aware of unregistered crypto ATMs or other suspicious crypto activity? FinTelegram urges you to report any concerns or information that could help expose illegal crypto operations. Your insights can help prevent money laundering and protect legitimate investors. Share Information with FinTelegram CategoriesCourt Cases Crypto Compliance FCATagsOlumide Osunkoya

Russian national Sergey Ivanov is one of the most wanted cybercriminals. U.S. authorities want him for his alleged involvement in extensive, long-running cybercrime activities. He is accused of being a cyber money launderer and allegedly created and operated several Russian payment exchange services facilitating tens of millions of dollars in financial activity linked to fraud, ransomware, and darknet drug markets. The Key Points Sergey Ivanov is one of the most wanted cybercrime fugitives in the United States: Significant Reward Offer: The U.S. Department of State, in partnership with the U.S. Secret Service, is offering a reward of up to $10 million for information leading to the arrest and/or conviction of Ivanov. In addition, the Department is offering a second reward offer of up to $1 million for information leading to the identification of any key leader (other than Ivanov) of the UAPS, PinPays, or PM2BTC transnational organized crime groups. Inclusion in Most Wanted Lists: Ivanov is featured prominently on the U.S. Secret Service’s Most Wanted Fugitives list. His presence on this list, alongside other high-profile cybercriminals, underscores his status as a top target for U.S. law enforcement. Serious Criminal Charges: Ivanov has been indicted on charges of conspiracy to commit and aid and abet bank fraud, as well as conspiracy to commit money laundering. These charges relate to his alleged involvement in extensive cybercrime activities spanning approximately two decades. Scale of Alleged Criminal Operations: According to the U.S. Department of Justice, Ivanov is accused of being one of the longest-running professional cyber money launderers known to the U.S. government. His alleged criminal activities involve laundering hundreds of millions of dollars for various cybercriminal actors, including ransomware operators and darknet marketplace vendors. Given these factors, Sergey Ivanov is accurately characterized as one of the most wanted cybercrime fugitives sought by U.S. authorities. Alleged Criminal Activities Ivanov is accused of being a prolific money launderer with a criminal career spanning approximately two decades1. His alleged activities include: Laundering hundreds of millions of dollars worth of virtual currency for various criminal actors, including ransomware operators, initial access brokers, and darknet marketplace vendors1. Serving as a payment processor for fraud shops, including the OFAC-designated Genesis Market. Operating multiple payment processing services, including one doing business as UAPS. International Cooperation and Additional Actions The efforts against Ivanov and his associated entities involve significant international cooperation: The Netherlands Police and Dutch Fiscal Intelligence and Investigation Service (FIOD) have seized web domains and infrastructure associated with PM2BTC, UAPS, and Cryptex. The U.S. Secret Service has obtained court authorization to seize domains linked to UAPS and PM2BTC websites. Call to Action: FinTelegram urges readers with any information regarding Sergey Ivanov‘s whereabouts or activities to come forward. Please submit relevant information through our secure whistleblower system, Whistle42. Your cooperation could bring this alleged cybercriminal to justice and disrupt significant illicit financial operations. Remember, all information will be treated with the utmost confidentiality. Share Information with FinTelegram CategoriesLaw Enforcement People Radar tickerTagsSergey IanovSergey IvanovSergey Sergeevich IvanovСергей Сергеевич Иванов

The U.S. Securities and Exchange Commission (SEC) charged John LoPinto, Robert Wilkos, and Laren Pisciotti with fraud in a scheme involving investments in pre-IPO private companies. The SEC also charged several companies owned and/or controlled by the defendants. The SEC alleges that between Oct. 2019 and Dec. 2022, the scheme raised approximately $120 million from more than 900 investors in the U.S. and abroad. Key Points: The SEC charged John LoPinto, Robert Wilkos, Laren Pisciotti, and six related entities for defrauding investors out of $120 million in a pre-IPO scheme. The SEC also charged Pre IPO Marketplace Inc., Keyport Venture Partners LLC, Keyport Venture Management LLC, Keyport Venture Advisors LLC, Principal Pre-IPO Consulting Group LLC, and GlobalX VC LLC. Defendants misled over 900 investors by falsely claiming ownership of pre-IPO shares, hiding fees, and using aliases to mask disciplinary histories. The SEC has ramped up enforcement in pre-IPO fraud cases, with multiple high-profile actions taken since 2020. Short Narrative: The SEC continues its crackdown on pre-IPO fraud with charges against three individuals and six entities in the New York area, accusing them of defrauding over 900 investors out of $120 million. John LoPinto, Robert Wilkos, and Laren Pisciotti promised investors shares in pre-IPO private companies, collecting millions in commissions while lying about fees and the legitimacy of their holdings. The defendants used fraudulent tactics, including hiding past sanctions and offering non-existent pre-IPO shares, leaving many investors empty-handed. This case adds to a growing list of SEC enforcement actions targeting fraudulent pre-IPO schemes. The SEC’s Division of Enforcement has made pre-IPO fraud a priority, filing multiple cases, including a $528 million fraud case in December 2023 and a $410 million scheme in May 2022. Compliance Insight: The pre-IPO market has become a hotbed for fraudulent activity, and the SEC has ramped up its efforts to bring perpetrators to justice. Recent cases include: August 2024: A China-based investment adviser and CEO charged in a $6 million pre-IPO fraud. December 2023: SEC charged five individuals in a $528 million pre-IPO fraud. June 2024: SEC brought charges against three individuals for a $184 million pre-IPO fraud connected to an unregistered broker-dealer. May 2022: SEC stopped a $410 million pre-IPO fraud scheme, leading to subsequent charges against sales agents in March 2023. The SEC’s intense focus on pre-IPO fraud highlights the importance of conducting thorough due diligence before investing in such offerings. Investors should be cautious of promises related to unregistered securities and watch for hidden fees or unverifiable claims about ownership of pre-IPO shares. Call for Information: Have you or someone you know been targeted by fraudulent pre-IPO schemes? FinTelegram encourages whistleblowers and victims to come forward. Your information can help shed light on these fraudulent practices and protect future investors. Share Information with FinTelegram CategoriesSECTagsGlobaX VCJohn LoPintoKeyport Venture AdvisorsKeyport Venture ManagementKeyport Venture PartnersLaren PisciottiPre IPO MarketplacePrincipal Pr-IPO Consulting GroupRobert Wilkos

TD Securities’ involvement in a spoofing scheme is a wake-up call for firms to take compliance seriously. The lack of effective supervision allowed illegal trading activities to continue for over a year. With penalties from the SEC, DOJ, and FINRA totaling over $15 million, this case reinforces the financial and reputational risks of non-compliance. Firms must prioritize detecting and preventing manipulative trading practices before they escalate into major regulatory breaches. Key Points: TD Securities was charged by the SEC for manipulating the U.S. Treasury cash securities market via a spoofing scheme. The firm also failed to supervise its U.S. Treasuries desk head, who executed hundreds of illegal trades. TD Securities will pay $6.5 million in penalties to the SEC and over $15 million in total sanctions, including settlements with the DOJ and FINRA. Short Narrative: TD Securities (USA) LLC, a registered broker-dealer, has been charged by the SEC for engaging in an illegal trading strategy known as spoofing. Over a 13-month period from April 2018 to May 2019, the head of the firm’s U.S. Treasuries desk manipulated the market by placing non-bona fide orders to distort prices and achieve favorable trades for the firm. Once the legitimate trades were filled, the false orders were canceled, generating profits for TD Securities. The SEC also found that the firm failed to adequately supervise the trader, even after warnings were issued regarding his suspicious trading activity. Actionable Insight: This case demonstrated that the SEC is not only going against crypto startups but also against big names. The agency made clear that robust internal controls and active supervision are essential in preventing market manipulation. Firms must ensure that employees are monitored closely, particularly after receiving red flags, to avoid costly regulatory actions. Call for Information: Do you have knowledge of illicit trading practices or spoofing schemes within the securities market? FinTelegram encourages whistleblowers to step forward. Reporting these activities is key to maintaining market integrity. CategoriesCompliance SECTagsTD SecuritiesTD Securities USA