{"id":85414,"date":"2023-11-16T16:43:33","date_gmt":"2023-11-16T21:43:33","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/fbi-arrests-trio-of-crypto-criminals-over-10-million-stolen-from-nyc-banks\/"},"modified":"2023-11-16T16:43:36","modified_gmt":"2023-11-16T21:43:36","slug":"fbi-arrests-trio-of-crypto-criminals-over-10-million-stolen-from-nyc-banks","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=85414","title":{"rendered":"FBI Arrests Trio of Crypto Criminals, Over $10 Million Stolen from NYC Banks"},"content":{"rendered":"
\n

Three men have been arrested for an elaborate conspiracy that drained $10 million from banks across the New York City metropolitan area, United States Attorney for the Southern District of New York, Damian Williams, announced today.<\/p>\n

\u201cFor years, Zhong Shi Gao, Naifeng Xu, and Fei Jiang allegedly participated in a complex scheme to steal over $10 million from nearly a dozen U.S. banks and financial institutions, which they converted into cryptocurrency and moved to foreign cryptocurrency exchanges,\u201d said Williams.<\/p>\n

How it happened<\/h2>\n

<\/span>
According to a release by the U.S. Attorney\u2019s Office of the Southern District of New York, Gao, Jiang, and Xu recruited a number of Chinese and Taiwanese foreign nationals residing in the U.S. to open bank accounts across the New York City Metropolitan area.\u00a0<\/p>\n

The trio then took control of these accounts where they would arrange a string of transfers and deposits before ultimately making fraudulent reports that they were unauthorized.\u00a0<\/p>\n

From there, the banks proceeded \u201cto temporarily credit the accounts in the amount of the transferred funds, effectively doubling the amount of money initially deposited into these accounts,\u201d stated the report.<\/p>\n

The defendants would then swiftly withdraw the credited funds in cash or cryptocurrency that would be placed on foreign exchanges before the banks could discover that their original reports were fraudulent.<\/p>\n

The charges<\/h2>\n

<\/span>
Gao, Jiang, and Xu are facing four counts each, including bank fraud conspiracy, conspiracy to commit wire fraud, money laundering conspiracy, and aggravated identity theft.\u00a0<\/p>\n

U.S. District Judge Colleen McMahon has been assigned to the case. The total maximum sentence each defendant could face is 82 years in prison, though the Judge\u2019s discretion will ultimately decide the duration of their time in prison.<\/p>\n

\u201cSchemes like this harm institutions and make it tougher to report suspicious transfers,\u201d said FBI Assistant Director in Charge James Smith. \u201cThe FBI will hold you accountable in the criminal justice system.\u201d<\/p>\n

Legal crackdown on crypto<\/h2>\n

<\/span>
Gao, Jiang, and Xu\u2019s arrests come amidst a broader legal crackdown on fraud in the cryptocurrency sector as a whole.<\/p>\n

\u201cThese charges should serve as a warning to fraudsters and cybercriminals who think they can turn to cryptocurrency to hide their identities \u2013 together with our partner agencies, we will find you and hold you accountable for your crimes,\u201d stated\u00a0 Williams.\u00a0<\/p>\n

Williams\u2019 statements echo ones he made at a press conference earlier this month, urging crypto fraudsters to \u201ccut it out\u201d following the trial and conviction of disgraced FTX founder, Sam Bankman-Fried.<\/p>\n

\u201cAnd if they don\u2019t, I promise we\u2019ll have enough handcuffs for all of them,\u201d Williams said.<\/p>\n

\n
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Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Three men have been arrested for an elaborate conspiracy that drained $10 million from banks across the New York City metropolitan area, United States Attorney for the Southern District of New York, Damian Williams, announced today. \u201cFor years, Zhong Shi Gao, Naifeng Xu, and Fei Jiang allegedly participated in a complex scheme to steal over […]<\/p>\n","protected":false},"author":1,"featured_media":85415,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-85414","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"\nFBI Arrests Trio of Crypto Criminals, Over $10 Million Stolen from NYC Banks | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Three men have been arrested for an elaborate conspiracy that drained $10 million from banks across the New York City metropolitan area, 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