Russian Individuals Charged for $400 Million Mt. Gox Bitcoin Hack

Russian Individuals Charged for $400 Million Mt. Gox Bitcoin Hack

Time Stamp: June 10, 2023 7:59 AM
Source Node: 2715039

In a disheartening incident, a Webster County resident from Iowa is taking legal action against an unidentified group of individuals responsible for a cryptocurrency-romance scam. The victim claims to have lost $232,000 in this elaborate scheme, which also involved threats to harvest his organs. The emergence of such scams, known as “pig butchering,” has resulted in over $2 billion in losses worldwide during 2022 alone. This article delves into the details of the case and sheds light on the increasing prevalence of cryptocurrency-related scams.

Brian Hoop, a Fort Dodge resident, recently filed a federal lawsuit recounting his encounter with the scam. In September 2022, Hoop received an unexpected text message from an unknown number, supposedly intended for someone else. The sender introduced herself as “Emma,” sparking a conversation that lasted six months. Gradually, their virtual relationship deepened, leading to intimate exchanges of messages and photos. Hoop considered “Emma” his girlfriend.

According to a local news channel (KPVI) , In December 2022, “Emma” disclosed her profitable cryptocurrency trading strategies and offered to help Hoop navigate his own investments. She directed him to Energise Trade, an apparent legitimate cryptocurrency exchange. Over the following weeks, Hoop liquidated his retirement and savings accounts, borrowed money from various sources, and ultimately transferred $232,793 to Energise Trade. He believed his investment had generated returns of $1.1 million.

However, when Hoop attempted to withdraw his funds, he was unexpectedly asked to pay an additional $100,000 in taxes. Refusing to comply, he faced threats from “Emma” who aimed to extort money by exposing their intimate conversations and photos. More alarmingly, she claimed to have hired agents who would physically harm Hoop and harvest his organs for the black market.

The lawsuit names “Emma” and 20 unidentified individuals, all believed to be located in China, as defendants. The accusations include conversion, racketeering, conspiracy, unauthorized disclosure of intimate images, and negligent infliction of emotional distress. Additionally, a Delaware corporation called MEXC Global, allegedly controlling the accounts where Hoop’s funds were deposited, is also listed as a defendant. The lawsuit contends that these actions are part of a larger scheme targeting unsuspecting victims.

Seeking justice, the lawsuit demands actual damages of at least $232,793, trebled damages of $698,378 as allowed under federal law, state law’s statutory damages of $10,000, punitive damages of at least $931,171, and reimbursement for attorneys’ fees. The defendants have yet to respond to the lawsuit, leaving the case pending.

The Federal Bureau of Investigation (FBI) has issued a warning about the alarming rise of pig-butchering scams centered around cryptocurrency exchanges. Perpetrators, often assuming fake identities, build relationships with victims through dating apps, social media platforms, professional networks, or encrypted messaging apps. These scams have evolved to include tactics like “liquidity mining” and “play-to-earn” games, as highlighted by the FBI.

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