Úno 17

Chicago Trader Steals Over $2 Million in Bitcoin and Litecoin Cryptocurrency

· February 17, 2018 · 10:30 am

A Chicago trader is facing up to 20 years in prison for stealing over $2 million in Bitcoin and Litecoin cryptocurrency from his employer.

Most 24-year-olds would be quite happy to be attached to a new cryptocurrency unit for a major financial entity. That’s not a bad career path for someone who previously worked as a cryptocurrency trader in South Korea before joining Consolidated Trading LLC to become an assistant bond trader in July 2016. A new department looking to dive into the burgeoning crypto world is a great stepping stone for moving up. That is unless that person is a degenerate gambler. Such is the case of Joseph Kim, who stole over $2 million in Litecoin and Bitcoin cryptocurrency from his employer.


Stealing Begins Almost Immediately

The cryptocurrency group was created by Consolidated in September 2017, and Joseph Kim joined the unit sometime during that month. He had his own personal cryptocurrency accounts, which he informed his employer of, and he was told to cease all personal trading to avoid a conflict of interest.

However, Kim transferred 980 litecoins (worth $48,000) on a weekend shortly after joining the new unit. When a supervisor found out, Kim said he transferred the coins to a “personal digital wallet for safety reasons” due to issues he was having with Bitfinex, the cryptocurrency exchange in Hong Kong. He then said that the coins had been transferred to a Consolidated wallet (which was untrue).

In November, the trader then sent 55 bitcoins (value of $433,000) from Consolidated into an unknown account. When confronted on this transfer, Kim said that the transfer had been blocked and that he was taking steps to unblock it. He later sent back 27 bitcoins into the corporate account, leaving 28 in his possession.

The Sizes Get Bigger

Eventually, Kim transferred 284 bitcoins (worth $2.8 million) from the company’s account into a personal wallet. He later sent back 102 of those coins into the Consolidated account, after which he then transferred the remaining 182 coins into a different account. Of that last amount, Kim lost a portion of it by personally trading.

Cryptocurrency gambling

When eventually confronted over all the transfers, Kim admitted to investing in short future positions using 55 bitcoins. He continued stealing cryptocurrency from the company to cover his margin calls, losses, and personal investments. After being arrested, Kim said that he was a degenerate gambler and admitted to converting the stolen Litecoin into Bitcoin for investment purposes.

Eventually, Consolidated managed to recover roughly 144 bitcoins from Kim’s various personal wallets. The financial company lost about $603,000 overall from the rogue trader’s gambling addiction.

In an email to his superiors at Consolidated, Kim said:

It was not my intention to steal for myself. I was perversely trying to fix what I had already done. I can’t believe I did not stop.

Investment gambling is real, and cryptocurrency is just a new avenue for some to indulge in the practice. The US Attorney has charged Joseph Kim with wire fraud, which could net him up to 20 years in prison. Kim has also made history, of a sort. He’s the first person in Chicago to be charged with wire fraud in regards to cryptocurrency.

Do you think that we’ll see more cases of traders pilfering cryptocurrency to fuel their gambling addiction in the future? Let us know in the comments below.

Images courtesy of Pixabay and Bitcoinist archives.

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Kvě 15

Aten Coin to Hold Conference on Digital Currency Compliance

Source: bitcoin

Aten Coin

Aten Coin, the “KYC/AML compliant digital currency,” is holding its 3rd conference in Chicago on May 27, 2016 at the IIT Chicago-Kent College of Law.

Also read: Japanese Company Raising Funds Abuses Tech Bureau Corp. Credentials

Aten Coin: A Compliant Digital Currency?

The title of the conference is “Beyond Bitcoin: Privacy, Money, Crime, and a Better Digital Currency.” As the title suggests, the conference will focus on the crime-related problems associated with Bitcoin, and how Aten Coin can bring digital currency into compliance with criminal and financial laws. The conference website also states that it will address the privacy concerns raised when dealing with a digital currency designed to prevent criminal activity.

According to the website, “What Aten Coin offers is good for controlling money laundering, but raises concerns about privacy. The conflict reflects the dual nature of financial regulation.” The website continues, “Anti-money-laundering and counter-terrorism law require identifying parties in financial transactions and filing reports on suspicious activity, but privacy regulations restrict the disclosure of personally identifying information.” Questioning the ability of digital currency to reconcile this conflict, the conference organizers ask, “Can we realize the gains from digital currencies in a coherent system of regulation that respects privacy while also taking adequate steps to [sic] against money laundering and terrorism?”

The conference will feature three panel discussions, which will come after an overview of the main issues to be addressed.

From the website regarding the three panel discussions:

(1) Money Laundering and Digital Currency will examine the current money laundering issues posed by the use of digital currency.

(2) Reaping Benefits, Respecting Privacy considers whether and how we can combine combatting money laundering with adequate respect for privacy.

(3) Securing Digital Currency examines technological requirements, psychological effects, and legal issues involved in providing adequate security for digital currency. The program concludes with an assessment of the extent that Aten Coin meets the challenges the previous sessions have identified.

In addition to the three main panels, the website provides the following timeline for the conference:

  • 8:45 AM-9:45 AM: Registration
  • 9:45 AM-10:00 AM: Welcome
  • 10:00 AM-10:30 AM: The Bank Secrecy Act, Money Laundering, and Digital Currency with Joseph Silvia, Senior Counsel Locke Lord, Chicago
  • 10:30 AM-11:30 AM: Panel — Digital Currency: Enforcement Needs and Issues
  • 11:30 AM-11:45 AM: Break
  • 11:45 AM-12:15 PM: Digital Currency vs Regulated Security with John Fahy, Whitaker Chalk Swindle & Shwartz PLLC
  • 12:15 PM-1:45 PM: Lunch
  • 1:45 PM-3:00 PM: Privacy/Security Tradeoffs with:
    • Ian Schick, Pillsbury Law
    • Martin Mushkin, Law Office of Martin Mushkin
    • Richard Warner, Professor, Chicago-Kent College of Law
  • 3:00 PM-3:30 PM: Break
  • 3:30-4:00: Can Aten Coin Meet the challenges? With Konrad Bojar, NAC Foundation
  • 4:00 PM: Reception

Aten Coin was designed with regulatory compliance in mind. According to the official Aten Coin website, the digital currency has the following “regulatory features”:

  • US Patriot Act compliant
  • Anti-Money Laundering compliant
  • Know Your Customer compliant
  • Bank Secrecy Act compliant
  • US Office of Foreign Assets Control compliant
  • “Also compliant with many worldwide regulating requirements”

The Aten Coin conference is hosted by the Aten Coin Foundation in partnership with the IIT Chicago-Kent College of Law and its Office of Continuing Legal Education. Chicago-Kent students can earn up to 5.5 hours of general IL MCLE credit for attending the event. Additionally, admission to the conference is free, and is open to the public.

Are you attending the Aten Coin conference? Let us know in the comments below!

Images courtesy of Aten Coin.


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Aten Coin to Hold Conference on Digital Currency Compliance