The Cryptocurrency and Digital Asset Fraud Casebook

Preface
Contents
1 Introduction to Cryptocurrency and Digital Asset Fraud and Crime
	Introduction to Cryptocurrency and Digital Assets
	Introduction to Fraud
		Understanding Fraud Theft Targets
		Understanding Fraud Approaches
		Understanding the Elements of Fraud
	Distinguishing Criminal and Civil Fraud
	Distinguishing Theft and Fraud
	Motivations for Fraud
	Comparing Crypto Fraud with Traditional Fraud
	Crypto Fraud Statistics
	Crypto Romance Scams
		Pig Butchering Scams
	Crypto Phishing Scams
	Giveaway/Multiplier Scams
		Celebrity and Corporate Impersonation
		Social Media Hijacking
		Goodwill Airdrop Fraud
	Chapter Summary
	Notes
2 Cryptocurrency Exchange Fraud and Hacks
	Introduction to Cryptocurrency Exchanges
	Hackers and Crypto Exchange Centralization
	Introduction to Cryptocurrency Exchanges
		Centralized Versus Decentralized Exchanges
		Spot Trading
	Case Studies in Cryptocurrency Exchange Fraud and Hacks
		Coincheck Hot Wallet Hack
		Tumblers
		Coincheck Hack Aftermath
	Decentralized Exchange Hacks
		GMX
		Kyber Network
		Transit Swap
	Ascendex
	MM.Finance
	Bitfinex
	Crypto.Com
	Cryptocurrency Exchange Hack Future Perspectives
	Chapter Summary
	Notes
3 Cryptocurrency Ponzi, Pyramid, and MLM Schemes: Part 1
	Introduction to Cryptocurrency Ponzi Schemes
	Introduction to Pyramid and MLM Schemes
	Case Studies in Cryptocurrency Ponzi and Pyramid Schemes
	Brazilian Cryptocurrency Scams
		Brazil’s “Bitcoin King”
		Brazil’s Bitcoin Pharaoh
		International Drug Trafficking and Money Laundering
		Operation Egypto
	African Crypto Scams
		Challenges to Bitcoin Adoption in Africa
		CryptoShares (Zimbabwe)
		Egyptian Crypto Ponzi Scams
	OneCoin
	Chapter Summary
	Notes
4 Cryptocurrency Ponzi, Pyramid, and MLM Schemes: Part 2
	Cryptocurrency Ponzi Schemes and Pyramid Schemes Continued
	Turgut V
	Profit Connect Wealth Services
	Coinbase Former Employee
		Background
		The Insider Trading Scheme
		ISHAN WAHI’s Attempt to Flee the United States
	BitConnect
	Chapter Summary
	Notes
5 Non-Fungible Token (NFT) Fraud
	Introduction to NFTs
	Common NFT Fraud Typologies
	Meme NFT Fraud
	Case Studies in Cryptocurrency Ponzi Schemes
	Beer with Bill Murray
	Frosties and Embers
	Baller Ape Club
	Vulcan Forged
	NFT Minting Fraud
	Pranksy
	Artist Impersonation
	Meebits
	Marble Cards
	OpenSea NFT Insider Trading Case
	Chapter Summary
	Notes
6 Decentralized Finance (DeFi) Fraud and Hacks: Part 1
	Introduction to DeFi
	Binance Blockchain (BNB Bridge)
	Meerkat Finance
	BadgerDAO
	Rari Capital/Fei Protocol
	KuCoin
	EasyFi/Nexus Mutual
	Pickle Finance
	Akropolis DeFi and Origin Dollar
	The DAO Hack
	Vee Finance
	Value DeFi
	Alpha Finance
	PancakeBunny and PolyBunny
	Cashio
	Mirror Protocol
	Harvest Finance
	Mango Markets
	Boy X Highspeed (BXH) Exchange
	Chapter Summary
	Notes
7 Decentralized Finance (DeFi) Fraud and Hacks: Part 2
	Decentralized Finance Fraud and Hacks Continued
	Nirvana Finance
	Beanstalk
	bZx (Fulcrum)
	Compound Finance
	Compounder Finance
	Alchemix
	Introduction to DeFi Bridge Hacks
		Multichain (Formerly Anyswap)
		Wormhole
		Qubit Finance
		BitMart
		Axie Infinity’s Ronin Network
		Harmony’s Horizon Bridge
		Nomad Bridge
	Poly Network
	Cream Finance
	Wintermute
	Chapter Summary
	Notes
8 Cryptocurrency Hedge Fund Scams and Anti-money Laundering Violations
	Introduction to Crypto Hedge Funds
	Anti-money Laundering Compliance
	Virtual Asset Service Providers (VASPs)
	Robinhood Crypto, LLC
	Q3 Trading Club
	EmpiresX
	Virgil Sigma Fund LP/VQR
	Background
	Qin’s Scheme to Steal Assets from Virgil Sigma
	Qin Attempts to Steal Assets From VQR to Pay Virgil Sigma Investors
	Chapter Summary
	Notes
9 Initial Coin Offerings (ICOs) and Celebrity Token Promotions: Part 1
	Introduction to Initial Coin Offerings (ICOs) and Celebrity Promotion
	SEC November 2017 ICO Cautionary Warning
	T.I. and Flik
	Steven Segal and Bitcoiin2Gen
	Floyd Mayweather Jr. and DJ Khaled
	Kim Kardashian and EthereumMax
	Chapter Summary
	Notes
10 Initial Coin Offerings (ICOs) and Celebrity Token Promotions: Part 2
	Initial Coin Offerings (ICOs) and Celebrity Promotion Continued
	The Hydrogen Technology Corporation and Hydro
	Sparkster
	Chapter Summary
	Notes
11 Additional Case Studies in Cryptocurrency Fraud
	Introduction
	Titanium Blockchain Infrastructure Services
	Barksdale Siblings and Ormeus Coin
	Mercenary Gold
	CryptoBay VIP and Other January 2022 Frauds
	Outverse
	Big Daddy Ape Club
	Blockverse
	VirSE
	Chapter Summary
	Notes
12 Trends and Future Developments
	Introduction
	Increased Regulatory Resources to Fight Crypto Fraud
	Increasing Focus of Hackers on Crypto Related Espionage
		Crypto Increasingly Used to Pay Spies
			Jareh Sebastian Dalke
			Jonathan and Diane Toebbe
			North Korean Espionage
		Fake Crypto Job Postings to Gather Intelligence
		Helix and Coin Ninja—Crypto Mixer FinCEN Penalty
		Tornado Cash and Crypto’s Relations to Sanctions
	Chapter Summary
	Notes
Index