TL;DR Breakdown
Authorities have brought charges against a 57-year-old Las Vegas man, Bryan Lee, in connection with the CoinDeal crypto fraud scheme. The U.S. Department of Justice (DOJ) alleges that Lee collaborated with others to defraud over 10,000 investors out of $45 million.
US DOJ said the criminals promised high returns
CoinDeal, presented as a blockchain technology investment scheme involving a new cryptocurrency and the metaverse, enticed investors with promises of exceptionally high returns. The scheme claimed that wealthy investors were poised to join, further bolstering potential profits, according to the DOJ.
However, in January, the U.S. Securities and Exchange Commission (SEC) exposed CoinDeal as an elaborate scheme designed to enrich the defendants while defrauding tens of thousands of retail investors. Several individuals were charged with violating securities laws at that time.
In the recent announcement, the DOJ revealed new criminal charges against Bryan Lee, accusing him and his colleague Neil Chandran of misappropriating millions of dollars from investor funds. The ill-gotten gains were allegedly used to purchase luxury cars and real estate.
The charges against Lee include one count of conspiracy, two counts of mail fraud, one count of wire fraud, and three counts of engaging in monetary transactions involving criminally derived property.
The criminals used the proceeds to purchase luxury items
The investigation into the case involves the FBI Washington Field Office, alongside the FBI Las Vegas and Omaha Field Offices. Neil Chandran was apprehended last year, while another defendant, Michael Glaspie, has already pleaded guilty to one count of wire fraud.
Glaspie is scheduled to be sentenced on June 16. Bryan Lee appeared in federal court today, where he faces a potential sentence of up to 20 years in prison for each wire fraud, mail fraud, and conspiracy count.
Additionally, he could face up to 10 years in prison for each count of engaging in unlawful monetary transactions. In total, Lee potentially faces a maximum of 100 years behind bars, as stated by the DOJ.
The case highlights the continued efforts by authorities to crack down on fraudulent schemes in the cryptocurrency space. It serves as a reminder to investors to exercise caution and due diligence before participating in any investment opportunity, especially those promising unusually high returns.
As the legal proceedings unfold, the outcome of this case will be closely watched, as it has the potential to set a precedent for future actions against individuals involved in fraudulent cryptocurrency schemes.
