USA: Three Arrested for $10 Million Bank Scam Tied to Cryptocurrency

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Big news! The cops nabbed three people who allegedly tricked US banks out of $10 million and shuffled the money into foreign cryptocurrency exchanges. The suspects, named Zhong Shi Gao, Naifeng Xu, and Fei Jiang, were caught by the U.S. Department of Justice (DOJ) for a$10 Million Bank Scam

$10 Million Bank Scam : Three Arrested for $10 Million Bank Scam Tied to Cryptocurrency

How They Did a $10 Million Bank Scam

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Here’s the scoop: Gao, Xu, and Jiang supposedly convinced folks from China and Taiwan, living temporarily in the US, to open bank accounts. Once the accounts were set up, the trio took charge. They moved money between these accounts and filed fake reports, saying the transactions were not legit. The banks, falling for it, temporarily added the wired amounts to the accounts. Seizing this chance, the suspects withdrew the money or turned it into cryptocurrency before the banks realized the reports were fake.

The DOJ claims this sneaky plan let them take almost double the initial deposit and leave the accounts in the negative.

The Size of the Scam

Damian Williams, the U.S. Attorney, spilled the beans, revealing the scam grabbed more than $10 million from about a dozen US banks. He gave a stern warning to crooks, saying they won’t get away with using cryptocurrency to hide.

“These charges should serve as a warning to fraudsters and cybercriminals who think they can turn to cryptocurrency to hide their identities – together with our partner agencies, we will find you and hold you accountable for your crimes,” warned U.S. Attorney Damian Williams.

FBI’s James Smith backed him up, pointing out how these schemes mess with banks and make reporting suspicious stuff harder.

Legal Trouble

The suspects – Gao, Xu, and Jiang – are in hot water, facing charges like bank fraud conspiracy, wire fraud affecting a financial institution, money laundering conspiracy, and aggravated identity theft.

Wrap-Up: $10 Million Bank Scam

As the legal drama unfolds, this story is a big reminder of the challenges cops face in dealing with financial crimes, especially those using cryptocurrency. The DOJ acted fast, showing that people doing sneaky stuff will be caught.

In the world of money crimes mixing traditional banks and new-age cryptocurrency, law enforcement is keeping watch. This case warns anyone thinking of doing something fishy that the law is onto them.

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