Just like any other industry that involves money and securities, the crypto industry is riddled with certain shady figures who try to take advantage of potential investors and steal their money. As a result of this, law enforcement has been kept all their toes investigating and prosecuting these criminals and their activities. In terms of fraudulent securities, the crypto industry has shown to be a somewhat vulnerable market. When ICOs were at the peak of their popularity, many fraudulent and unregistered ones flooded the market and even though they are not as popular, these shady individuals are still an issue to an extent.
According to a November 18, 2019 press release, the United States has extradited a Swedish national from Thailand after he made by $11 million in bitcoin by selling fraudulent securities over the Internet.
Arrested and Extradited
This information comes from the United States department of justice and the man in question is named Roger Nils-Jonas Karlsson and is on his way to the United States to stand trial for both himself and his company Eastern Metal Securities.
Karlsson was arrested on June 17, 2019, and on July 25, 2019, was indicted by a grand jury on charges of securities fraud, wire fraud, and money laundering. He had made use of his company Eastern Metal Securities as well as a number of fake identities to convince investors to pay $90 per share in his business which he claimed would give them the returns of 1.5 kg of gold per share after a certain amount of time.
Karlsson accepted payments from investors in the form of various tokens including bitcoin and he had promised that 97 percent of the investment would be returned if the gold idea did not come to fruition. According to the Department of Justice, 3,575 people invested in the scheme and Carlson was able to make over $11 million as a result. The money, they say, it’s now tied up in the Thai real estate market.