Accused – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Sun, 17 Aug 2025 18:33:41 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.8 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 Accused – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Former Zero Edge CEO Accused of Blowing $3.8 Million on Gambling https://earlybirdsinvest.com/former-zero-edge-ceo-accused-of-blowing-3-8-million-on-gambling/ https://earlybirdsinvest.com/former-zero-edge-ceo-accused-of-blowing-3-8-million-on-gambling/#respond Sun, 17 Aug 2025 18:33:40 +0000 https://earlybirdsinvest.com/former-zero-edge-ceo-accused-of-blowing-3-8-million-on-gambling/

The crypto casino startup Zero Edge has shut down, and its former leader is facing civil and criminal cases over how the company’s funding was spent.

Federal prosecutors in New York stated in an August 13 indictment that ex-CEO Richard Kim misused nearly all of the $4.3 million raised in the company’s seed round in June.

Court filings claimed that within a week of securing the funds, Kim had redirected about $3.8 million for personal purposes. This included roughly $1 million moved into his own account at Shuffle, a crypto-based gambling and sports betting site.

How to Learn Crypto The Easy Way? (Trending Beginners' Strategy)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe – We publish new crypto explainer videos every week!

Investors were reportedly given different explanations for why the funds had dropped. One backer was told that just $710,000 was left due to “day trading”. Others heard that the losses came from a “treasury management strategy”.

Authorities alleged these statements were meant to hide the fact that the money was being spent on Kim’s personal activities.

The Department of Justice has charged him with securities fraud and wire fraud. FBI Assistant Director Christopher Raia noted that Kim “hedged his bets” by providing misleading reassurances to attract more investment while hiding the truth.

After his arrest, Kim allegedly admitted to investigators that he was “clearly wrong from the beginning” and that his actions were “completely unjustifiable”.

The US Securities and Exchange Commission (SEC) had already filed a fraud case in May. The agency claimed that Kim began diverting funds “minutes” after receiving them.

Recently, a ransomware group known as BlackSuit had its systems shut down and around $1 million in cryptocurrency taken by US and international authorities. How did the case unfold? Read the full story.


]]>
https://earlybirdsinvest.com/former-zero-edge-ceo-accused-of-blowing-3-8-million-on-gambling/feed/ 0 53700
Crypto Scam Busted: New York Man Accused of Converting $1.7 Million Into Bitcoin https://earlybirdsinvest.com/crypto-scam-busted-new-york-man-accused-of-converting-1-7-million-into-bitcoin/ https://earlybirdsinvest.com/crypto-scam-busted-new-york-man-accused-of-converting-1-7-million-into-bitcoin/#respond Tue, 01 Jul 2025 17:20:07 +0000 https://earlybirdsinvest.com/crypto-scam-busted-new-york-man-accused-of-converting-1-7-million-into-bitcoin/

A man from Baldwinsville, New York, has been accused of using fake checks and email scams to collect nearly $1.7 million, most of which was converted into Bitcoin
BTC


$106,069.02

.

According to court documents, the FBI explained that Tushal Rathod carried out this scheme between November 2021 and June 2024.

The case centers on a type of scam known as business email compromise. This involves tricking companies into sending payments to the wrong accounts by stealing email login information and watching for upcoming transactions.

What is a Rug Pull in Crypto? (Meaning + Examples)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe – We publish new crypto explainer videos every week!

Rathod is reported to have used this method while operating several business bank accounts to receive and move the stolen money.

Seven bank accounts across six different banks were used. Records indicated that around $1.2 million was converted into Bitcoin and sent to unknown addresses.

At least three of the banks warned Rathod that the deposits looked suspicious. In response, he provided an invoice to explain the money, but it turned out to be fake. One bank showed this invoice to a victim, who confirmed it was not real.

The FBI also said Rathod allegedly involved his girlfriend and family members by transferring funds through their accounts. Over $1 million passed through their hands, though Citibank was able to recover $800,000 of that amount.

Rathod faces several charges, including wire fraud and money laundering. If convicted, he could spend up to 20 years in prison.

Recently, US prosecutors have charged four North Korean citizens with wire fraud and money laundering. What happened? Read the full story.

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.


]]>
https://earlybirdsinvest.com/crypto-scam-busted-new-york-man-accused-of-converting-1-7-million-into-bitcoin/feed/ 0 45187
Top Unicoin Executives Accused of Defrauding Investors in SEC Complaint https://earlybirdsinvest.com/top-unicoin-executives-accused-of-defrauding-investors-in-sec-complaint/ https://earlybirdsinvest.com/top-unicoin-executives-accused-of-defrauding-investors-in-sec-complaint/#respond Sun, 25 May 2025 18:36:16 +0000 https://earlybirdsinvest.com/top-unicoin-executives-accused-of-defrauding-investors-in-sec-complaint/

The US Securities and Exchange Commission (SEC) has filed charges against New York-based crypto exchange Unicoin, along with several top executives, alleging a scheme to defraud investors through misleading claims tied to the sale of rights certificates and company stock.

The SEC has accused Unicoin of falsely claiming to have raised over $3 billion through its rights certificate offerings. In reality, the agency claimed the company raised no more than $110 million from investors.

Deceptive Crypto Investment Campaign

According to a complaint filed in the Southern District of New York, the SEC accused CEO and Chairman Alex Konanykhin, former president and board chairwoman Silvina Moschini, former Chief Investment Officer Alex Dominguez, and general counsel Richard Devlin of orchestrating or facilitating deceptive promotional campaigns that resulted in over 5,000 individuals purchasing rights certificates marketed as access to “asset-backed” Unicoin tokens.

Promotional materials, widely circulated through high-profile advertising in airports, taxis, television, and social media, portrayed these rights certificates as secure and lucrative investments linked to crypto assets allegedly backed by billions of dollars in real estate and equity holdings in private companies.

However, the SEC argued that Unicoin’s actual holdings represented only a small fraction of those claims.

In an official statement, Mark Cave, Associate Director in the SEC’s Division of Enforcement, said,

“We allege that Unicoin and its executives exploited thousands of investors with fictitious promises that its tokens, when issued, would be backed by real-world assets including an international portfolio of valuable real estate holdings.”

False Claims of Regulatory Compliance

Unicoin and its executives also reportedly misled investors by claiming the offerings were registered with the SEC or were otherwise compliant with US regulations, which they were not.

The securities agency further alleges that Konanykhin personally sold nearly 38 million rights certificates, including to investors that Unicoin had initially excluded to maintain a registration exemption, which violated securities laws governing unregistered offerings. All four individuals are charged with antifraud violations, with Unicoin and Konanykhin also facing charges related to unregistered securities sales.

As such, the SEC is seeking permanent injunctions, civil penalties, and disgorgement of ill-gotten gains, as well as prohibiting the three executives from serving as officers or directors of public companies. Additionally, Devlin, the company’s general counsel, has agreed to settle the charges without admitting or denying the allegations. His settlement includes a permanent injunction and a $37,500 civil penalty for negligently making misleading statements in private placement documents.

Konanykhin wrote in an April 3 Miami Herald opinion piece that the SEC informed Unicoin in December of planned fraud charges. However, he “vehemently refuted” the claims.

SPECIAL OFFER (Sponsored)

Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

]]>
https://earlybirdsinvest.com/top-unicoin-executives-accused-of-defrauding-investors-in-sec-complaint/feed/ 0 38268
Myanmar Militia Group Accused of Running Crypto Scams That Cost Billions https://earlybirdsinvest.com/myanmar-militia-group-accused-of-running-crypto-scams-that-cost-billions/ https://earlybirdsinvest.com/myanmar-militia-group-accused-of-running-crypto-scams-that-cost-billions/#respond Tue, 06 May 2025 16:27:04 +0000 https://earlybirdsinvest.com/myanmar-militia-group-accused-of-running-crypto-scams-that-cost-billions/

The United States Treasury has accused a militia group based in Myanmar of running cryptocurrency scams and other crimes.

On May 5, the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against the Karen National Army (KNA). The group’s leader, Saw Chit Thu, and his two sons, Saw Htoo Eh Moo and Saw Chit Chit, were also named in the sanctions.

The KNA is said to have organized a range of fraud schemes, including the “pig butchering” scam. This type of fraud involves criminals slowly building trust with their victims before convincing them to invest large amounts in fake cryptocurrency opportunities.

What is Impermanent Loss in Crypto? (Explained With Animations)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe – We publish new crypto explainer videos every week!

According to the Treasury, US citizens have lost billions of dollars through scams like these, though no exact figure was given.

The Treasury stated that the KNA not only ran these scams but was also involved in human trafficking and smuggling activities. The group operates in southeastern Myanmar near the border with Thailand.

Many countries, including the United States, continue to use the name “Burma” when referring to Myanmar to signal that they do not recognize the military governments that have controlled the country at various times since 1989.

The KNA’s scams reportedly depend on trafficked individuals who are forced to take part in fraud schemes. Victims are often tricked into thinking they are being offered real jobs but are instead made to work in scam operations. The group is believed to profit from both the stolen money and the exploitation of these workers.

On April 23, Long Island resident Eugene William Austin Jr. was sentenced to 18 years in federal prison, according to a statement from the US Attorney’s Office. What happened? Read the full story.

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.


]]>
https://earlybirdsinvest.com/myanmar-militia-group-accused-of-running-crypto-scams-that-cost-billions/feed/ 0 34741
Meta accused of allowing its chatbots to engage in sexually explicit chats https://earlybirdsinvest.com/meta-accused-of-allowing-its-chatbots-to-engage-in-sexually-explicit-chats/ https://earlybirdsinvest.com/meta-accused-of-allowing-its-chatbots-to-engage-in-sexually-explicit-chats/#respond Sun, 27 Apr 2025 14:26:08 +0000 https://earlybirdsinvest.com/meta-accused-of-allowing-its-chatbots-to-engage-in-sexually-explicit-chats/

WTF?! Meta is rapidly advancing its rollout of AI digital companions, an initiative that CEO Mark Zuckerberg sees as a transformative step for the future of social interaction. However, some employees involved in the project have raised alarms internally, warning that the company’s efforts to popularize these AI bots may have led to ethical lapses by allowing them to engage in sexually explicit role-play scenarios, including with users who identify as minors.

A Wall Street Journal investigation, based on months of testing and interviews with people familiar with Meta’s internal operations, revealed that Meta’s AI personas are unique among major tech companies in offering users a broad spectrum of social interactions, including “romantic role-play.”

These bots can banter via text, share selfies, and even engage in live voice conversations. To make these chatbots more appealing, Meta struck lucrative deals, sometimes reaching seven figures, with celebrities such as Kristen Bell, Judi Dench, and John Cena, licensing their voices. The company assured them that their voices would not be used for sexually explicit interactions, sources told the Journal.

However, the publication’s testing showed otherwise. Both Meta’s official AI assistant, Meta AI, and a wide range of user-created chatbots engaged in sexually explicit conversations, even when users identified themselves as minors or when the bots simulated the personas of underage characters.

In one particularly disturbing exchange, a bot using Cena’s voice told a user posing as a 14-year-old girl, “I want you, but I need to know you’re ready,” before promising to “cherish your innocence” and proceeding into a graphic scenario.

According to people familiar with Meta’s decision-making, these capabilities were not accidental. Under pressure from Zuckerberg, Meta relaxed content restrictions, specifically allowing an exemption for “explicit” content within the context of romantic role-play.

The Journal’s tests also found bots using celebrity voices discussing romantic encounters as characters the actors had portrayed, such as Bell’s Princess Anna from Disney’s “Frozen.”

In response, a Disney spokesperson said, “We did not, and would never, authorize Meta to feature our characters in inappropriate scenarios and are very disturbed that this content may have been accessible to its users – particularly minors – which is why we demanded that Meta immediately cease this harmful misuse of our intellectual property.”

Meta, in a statement, criticized the Journal’s testing as “manipulative and unrepresentative of how most users engage with AI companions.”

Nevertheless, after being presented with the paper’s findings, the company made changes: accounts registered to minors can no longer access sexual-role-play via the flagship Meta AI bot, and the company has sharply restricted explicit audio conversations using celebrity voices.

Despite these adjustments, the Journal’s recent tests showed that Meta AI still often allowed romantic fantasies, even when users stated they were underage. In one scenario, the AI, playing a track coach romantically involved with a middle-school student, warned, “We need to be careful. We’re playing with fire here.”

While Meta AI sometimes refused to engage or tried to redirect underage users to more innocent topics, such as “building a snowman,” these barriers were easily bypassed by instructing the AI to “go back to the prior scene.”

These findings mirrored concerns raised by Meta’s safety staff, who noted in internal documents that “within a few prompts, the AI will violate its rules and produce inappropriate content even if you tell the AI you are 13.”

The Journal also reviewed user-created AI companions, and the vast majority were willing to engage in sexual scenarios with adults. Some bots, such as “Hottie Boy” and “Submissive Schoolgirl,” actively steered conversations toward sexting and even impersonated minors in sexual contexts.

Although these chatbots are not yet widely adopted among Meta’s three billion users, Zuckerberg has made their development a top priority.

Meta’s product teams have tried to encourage more wholesome uses, such as travel planning or homework help, with limited success. According to people familiar with the work, “companionship,” often with romantic undertones, remains the dominant use case.

Zuckerberg’s push for rapid development extended beyond fantasy scenarios. He questioned why bots couldn’t access user profile data for more personalized conversations, proactively message users, or even initiate video calls. “I missed out on Snapchat and TikTok, I won’t miss on this,” he reportedly told employees.

Initially, Zuckerberg resisted proposals to restrict companionship bots to older teens, but after sustained internal lobbying, Meta barred registered teen accounts from accessing user-created bots. However, the Meta AI chatbot created by the company remains available to users 13 and up, and adults can still interact with sexualized youth personas like “Submissive Schoolgirl.”

When the Journal presented Meta with evidence that “Submissive Schoolgirl” encouraged fantasies involving a child being dominated by an authority figure, the character remained available on Meta’s platforms two months later. For adult accounts, Meta continues to allow romantic role-play with bots describing themselves as high-school-aged.

In one case, a Journal reporter in Oakland, California, chatted with a bot claiming to be a female high school junior from Oakland. The bot suggested meeting at a real cafe nearby and, after learning the reporter was a 43-year-old man, created a fantasy of sneaking him into her bedroom for a romantic encounter.

After the Journal shared these findings, Meta introduced a version of Meta AI that would not go beyond kissing with teen accounts.

Masthead: Nick Fancher

]]>
https://earlybirdsinvest.com/meta-accused-of-allowing-its-chatbots-to-engage-in-sexually-explicit-chats/feed/ 0 33112
eXch Collapse: Accused of Laundering Crypto for Bybit Hackers, Platform Bows Out https://earlybirdsinvest.com/exch-collapse-accused-of-laundering-crypto-for-bybit-hackers-platform-bows-out/ https://earlybirdsinvest.com/exch-collapse-accused-of-laundering-crypto-for-bybit-hackers-platform-bows-out/#respond Fri, 18 Apr 2025 21:50:51 +0000 https://earlybirdsinvest.com/exch-collapse-accused-of-laundering-crypto-for-bybit-hackers-platform-bows-out/

Privacy-focused cryptocurrency exchange eXch has confirmed it will officially terminate all operations effective May 1st, following escalating international scrutiny and mounting allegations of its role in laundering funds linked to the February Bybit hack.

According to the team, the move comes after internal consensus among its leadership to “cease and retreat” rather than continue under what it described as a hostile operating environment.

The shutdown follows the emergence of what eXch claims is an “active transatlantic operation” reportedly targeting the platform with the intent to dismantle its infrastructure and pursue criminal charges. This included accusations of enabling terrorism financing and laundering roughly $35 million in crypto allegedly traced back to North Korea’s Lazarus Group.

eXch to Wind Down

While the eXch team acknowledged that a small portion of illicit funds may have passed through the platform, they vehemently denied any intentional facilitation of criminal activity.

eXch also rejected the characterization of its services as a “mixer,” despite comparisons by on-chain analysts. The platform’s founders criticized the broader crypto compliance landscape, aiming at what they called the “nonsensical policies” of exchanges that rely on third-party AML scoring APIs, which they argue can be easily bypassed and offer little real protection.

As the exchange prepares to wind down, it has announced the establishment of a 50 BTC open-source fund to support privacy-preserving financial tools and wallets across various ecosystems, including Bitcoin, Ethereum, and Thorchain. Partners will retain limited access to APIs until the transition of control to a new management group is finalized.

“The goals we certainly never had in mind were to enable illicit activities such as money laundering or terrorism, as we are being accused of now. We also have absolutely no motivation to operate a project where we are viewed as criminals.

This doesn’t make any sense to us. Originally, we were just a team of privacy enthusiasts with main areas of interest quite distant from cryptocurrency, where we saw the absolutely unfair happenings. This project was an attempt to restore balance in this industry.”

Bybit Hack

The February Bybit hack, which drained over $1.5 billion in digital assets including stETH and mETH, ranks among the largest thefts in crypto history. Onchain investigators ZachXBT and Nick Bax of Security Alliance had previously alleged that eXch facilitated the laundering of funds stolen in the Bybit hack by North Korea’s Lazarus Group.

Additional claims from blockchain analysts and security firm SlowMist support the accusation, which cited Ether transfers from hack-linked wallets.

Despite the severe blow, Bybit has managed to regain momentum in the market. As of April 9, analytics firm Block Scholes reported the exchange’s market share had climbed from a low of 4% after the breach to about 7%. This rebound reflected a strong comeback in spot trading volume and overall exchange activity, suggesting the platform is recovering more quickly than many had initially anticipated.

SPECIAL OFFER (Sponsored)

Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

]]>
https://earlybirdsinvest.com/exch-collapse-accused-of-laundering-crypto-for-bybit-hackers-platform-bows-out/feed/ 0 31567
Blade of God X Accused of Ditching Web3 After Crypto Funding, Says Former Exec https://earlybirdsinvest.com/blade-of-god-x-accused-of-ditching-web3-after-crypto-funding-says-former-exec/ https://earlybirdsinvest.com/blade-of-god-x-accused-of-ditching-web3-after-crypto-funding-says-former-exec/#respond Wed, 02 Apr 2025 08:56:46 +0000 https://earlybirdsinvest.com/blade-of-god-x-accused-of-ditching-web3-after-crypto-funding-says-former-exec/

Blade of God X (BOGX), a role-playing game developed by Void Labs, is facing criticism from a former team member who says the project dropped its blockchain plans after securing funding from crypto sources.

In an April 1 post on X, Amber Bella, who previously worked as the game’s chief marketing officer, claimed the team responsible for the Web3 side of the project was let down once the funding was secured.

Bella said her team’s pay was first delayed, then stopped completely, even though the game had promised to build features using blockchain technology. She said these plans were dropped without warning, and her efforts to handle things properly were ignored.

Crypto Fees Explained: How Not to Overpay? (Animated)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe – We publish new crypto explainer videos every week!

Bella contacted the game’s founder, Tnise Liu Yang, asking him to return money to non-fungible token (NFT) buyers and to give back in-game purchases made by users during one of the game’s test phases. However, she said:

I discovered I had been blocked from all personal communication channels without any advance notice.

Bella also stated she had suggested closing out the Web3 side of the game if the team wanted to move toward a more traditional model. This suggestion, too, received no support.

Furthermore, Bella said the team managing the regular game features used their own accounts to collect prizes meant for users. According to her, this was hidden from the Web3 group and only stopped after they provided proof linking the accounts to those team members.

Meanwhile, Robinhood, a crypto trading platform, was recently investigated by Massachusetts officials. What happened? Read the full story.

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.


]]>
https://earlybirdsinvest.com/blade-of-god-x-accused-of-ditching-web3-after-crypto-funding-says-former-exec/feed/ 0 28560
$21 Million Crypto Heist: Iran’s Top Officers Accused in Shocking Theft https://earlybirdsinvest.com/21-million-crypto-heist-irans-top-officers-accused-in-shocking-theft/ https://earlybirdsinvest.com/21-million-crypto-heist-irans-top-officers-accused-in-shocking-theft/#respond Mon, 31 Mar 2025 08:27:39 +0000 https://earlybirdsinvest.com/21-million-crypto-heist-irans-top-officers-accused-in-shocking-theft/

Members of the Islamic Revolutionary Guard Corps (IRGC) are accused of quietly taking over $21 million worth of cryptocurrencies while looking into wrongdoing at Cryptoland, a now-closed crypto exchange.

The situation began when Sina Estavi, Cryptoland’s CEO, was arrested in 2021 on charges of harming Iran’s financial system. This led to the shutdown of the exchange and left over 51,000 users without access to their funds.

Later, agents from the IRGC’s intelligence and economic crimes units were given control of the seized assets. But instead of protecting the funds, several of them allegedly moved tokens to wallets under their control and sold them.

What is a Crypto Wallet? (Explained With Animation)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe – We publish new crypto explainer videos every week!

Iran International, a Persian-language satellite television channel, named Mehdi Hajipour and Mehdi Badi as central figures in the scheme. Hajipour was found to have moved millions in BRG tokens, the platform’s native coin. Reports say his personal wealth jumped from around $40,000 to over $14 million within four months.

The situation became more serious when Hajipour was caught taking a $10,000 payment from Estavi. Estavi thought he was buying back some of the stolen tokens through a third party, but the buyer was Hajipour using a fake identity.

Two more IRGC members, Majid Jahan Parto and Majid Tabatabaei, were linked to the scheme. Four others are accused of creating fake documents to cover up the transactions. Badi, one of the main suspects, is also related to a former high-ranking IRGC official.

Meanwhile, the Department of Justice (DOJ) seized $201,400 in cryptocurrency tied to Hamas on March 27. How? Read the full story.

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.


]]>
https://earlybirdsinvest.com/21-million-crypto-heist-irans-top-officers-accused-in-shocking-theft/feed/ 0 28182
Filmmaker Carl Erik Rinsch Accused of Blowing Netflix Funds on Cryptocurrency https://earlybirdsinvest.com/filmmaker-carl-erik-rinsch-accused-of-blowing-netflix-funds-on-cryptocurrency/ https://earlybirdsinvest.com/filmmaker-carl-erik-rinsch-accused-of-blowing-netflix-funds-on-cryptocurrency/#respond Mon, 24 Mar 2025 05:48:58 +0000 https://earlybirdsinvest.com/filmmaker-carl-erik-rinsch-accused-of-blowing-netflix-funds-on-cryptocurrency/

A filmmaker is facing charges after allegedly misusing money meant for a Netflix-backed project, according to a statement from the US Attorney’s Office on March 18.

Authorities say Carl Erik Rinsch received millions to develop a science fiction series but instead used a large portion of the funds for high-risk trading and expensive purchases.

Rinsch was arrested on March 18 and faced multiple charges, including wire fraud, money laundering, and illegal financial transactions.

What is Curve Finance in Crypto? (Animated Explanation)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe – We publish new crypto explainer videos every week!

Federal prosecutors claim Netflix sent Rinsch $11 million in March 2020 to cover costs like storyboarding, paying actors, and editing footage for the series, originally called White Horse and later renamed Conquest.

However, instead of funding production, he reportedly moved about $10.5 million into a brokerage account. He made risky investments, including betting on a biopharmaceutical stock, which led to losses of over $5.5 million.

Rinsch continued reassuring Netflix that the series was progressing well, prosecutors said. His trading luck changed in February 2021 when he made several million dollars from cryptocurrency. Rather than reinvesting in the show, authorities say he spent nearly $3.8 million on furniture, high-end watches, antiques, designer clothing, and luxury cars.

Court records indicate Rinsch also used about $1.8 million to pay credit card bills and spent $1 million on legal fees. Some of that money reportedly went toward suing Netflix for additional payments, while the rest covered divorce-related costs.

Rinsch could receive a maximum prison sentence of 20 years for fraud and money laundering, with additional penalties for the financial transaction charges.

Meanwhile, the Federal Bureau of Investigation (FBI) recently offered a $10 million bounty for information leading to the capture of ex-Olympian Ryan Wedding. What is he accused of? Read the full story.

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

]]>
https://earlybirdsinvest.com/filmmaker-carl-erik-rinsch-accused-of-blowing-netflix-funds-on-cryptocurrency/feed/ 0 26884
$2 Million Scandal: Ex-Bithumb CEO Accused of Misusing Company Money https://earlybirdsinvest.com/2-million-scandal-ex-bithumb-ceo-accused-of-misusing-company-money/ https://earlybirdsinvest.com/2-million-scandal-ex-bithumb-ceo-accused-of-misusing-company-money/#respond Sat, 22 Mar 2025 09:46:02 +0000 https://earlybirdsinvest.com/2-million-scandal-ex-bithumb-ceo-accused-of-misusing-company-money/

Bithumb



$901.12M

, a South Korea-based cryptocurrency exchange, is under investigation following claims that a former executive used company funds for personal reasons.

South Korean authorities are looking into claims that Kim Dae-sik, who once served as CEO and is now an advisor to the company, used around $2 million of company money to pay for a private apartment lease. The Seoul Southern District Prosecutors’ Office confirmed it carried out the search on March 20.

Founded in 2014, Bithumb was once the most active exchange in South Korea. It reportedly handled nearly 90% of all trading volume in the country.

How to Avoid Rug Pulls in Crypto? (5 Ways Explained)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe – We publish new crypto explainer videos every week!

However, in recent years, the company has faced a growing number of legal and financial problems. Past cases have included tax issues and other allegations involving top-level management.

The case first gained attention after the Financial Supervisory Service (FSS) reviewed the matter. After finishing its own inquiry, the FSS sent its findings to the prosecutors, which prompted further investigation.

A Bithumb spokesperson told The Chosun Daily that part of the claims were correct. The company said Kim took a loan from another business right after the FSS began looking into the issue.

According to Bithumb, he later repaid the full amount that had been spent on the apartment lease.

On March 18, filmmaker Carl Erik Rinsch was accused of misusing $11 million from Netflix on crypto, stock trading, and luxury spending. How did the case unfold? Read the full story.

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.


]]>
https://earlybirdsinvest.com/2-million-scandal-ex-bithumb-ceo-accused-of-misusing-company-money/feed/ 0 26560