On May 19, the US Department of Justice (DOJ) announced that it had charged Nevada resident Bryan Lee for being involved in the cryptocurrency scheme known as CoinDeal. Lee is accused of defrauding investors through Chandran’s various companies by conspiring with CoinDeal leader Neil Chandran. Here are the details…
Action taken for cryptocurrency fraud in the USA
Acting as the trustee and director of ViMarket, one of Chandran’s companies, Lee allegedly followed Chandran’s instructions and deposited investor funds into ViMarket’s bank accounts. ViMarket allegedly aims to develop an associated cryptocurrency alongside virtual reality (VR) and “metaverse” technologies.
Chandran convinced investors with promises of “extremely high returns,” according to the DOJ. However, both Chandran and Lee allegedly embezzled millions of dollars to finance extravagant personal expenses, including luxury cars and properties, rather than using the funds for their intended purposes.
Charges leveled against Lee include conspiracy, mail fraud, wire fraud, and monetary transactions with property obtained from the crime. If found guilty, he could face up to 110 years in prison. Lee is scheduled to appear on his first hearing in the near future. cryptocoin.com As we reported, CoinDeal first came under DOJ’s scrutiny in June 2022, when a criminal complaint was filed against Neil Chandran, who was later arrested. Michael Glaspie, another person involved in the fraud process, pleaded guilty in February 2023 and is awaiting sentence in June.
The SEC also filed charges.
In addition to DOJ’s actions, the US Securities and Exchange Commission (SEC) also announced charges against eight parties linked to the CoinDeal scheme in January 2023. The SEC is actively taking legal action against those involved in the fraudulent activities surrounding CoinDeal. Overall, CoinDeal defrauded around 10,000 victims, resulting in a staggering loss of around $45 million. The plan preyed on unsuspecting investors, who were lured by the promise of high returns and innovative technologies.
The charges brought against Bryan Lee and others involved in the conspiracy send a message that those involved in fraudulent cryptocurrency schemes will be held accountable. This lawsuit serves as a reminder to investors to be vigilant when engaging in cryptocurrency ventures, do thorough due diligence, and verify the legitimacy of projects before investing their money. As the investigation into the CoinDeal plan continues, law enforcement and regulatory agencies are reporting efforts to protect investors and maintain the integrity of the cryptocurrency market.
