The US Department of Justice has initiated a crackdown that included the arrest of an alleged fraudster for perpetuating a $1.8 million fraudulent scheme. The accused, Chet Stojanovich, is said to have defrauded multiple investors in the fraudulent scheme.
The details shared by the DoJ noted that the accused deceived investors that he was going to provide specialized crypto mining machines to give them improved hash power. He also promised them lucrative returns on investment. He is also accused of using various fraudulent methods, including misrepresentation, to deceive investors. Stojanovich was arrested on April 20, 2022, after moving to the United States from Canada. He was arrested following several complaints from the scammed investors and investigations into the scheme.
Fraudsters Take Advantage Of Crypto Boom
The cryptocurrency industry has been buzzing over the past few years. It has led to an overwhelming interest in the market by several top players as well as individual investors. However, while the sector keeps attracting investors, it has become a lucrative hunting ground for scammers and fraudsters. The fraudsters are taking advantage of people’s desire to make massive profits from the volatile crypto market to steal their invested funds.
The new world of cryptocurrency mining is also not left out. In this case, Stojanovich used an old-fashioned fraudulent method as a new frontier to rip off investors.
Regulators Stepped Up Efforts Against Scammers
Although Forex-related fraudulent activities have reduced in the US over the past two years, international FX-related frauds have increased Crytpo scams are also in large numbers, as the industry continues to generate more interest from the mainstream sector.
But regulators are now increasing their monitoring routine and prosecuting those found guilty of criminal activities in the industry. In line with the increased level of fraudulent activities within the crypto sector, the US DoJ has also stepped up its efforts to deal with criminals.
In November 2021, the authority charged two threat actors for playing roles in ransomware attacks. Last year, the CFTC also charged Thomas Plaut for an alleged FX scam of $4.7 million. US regulators have also banned several websites that are operating illegally to deceive gullible investors.