2 more exchanges down | Bitcointalksearch.org

Kemarit

legendary

Activity: 3080

Merit: 1353

Quote from: bL4nkcode on March 10, 2019, 12:42:40 PM

Quote from: TravelMug on March 10, 2019, 09:34:13 AM

Looks like criminals are evolving and using crypto to hide most of their illegal acts.

They did evolved already even in the past few years.

The question is why did the Australian government let that exchange operate without proper inspection or review of that company or even know that the CEO or any executives have a background of being a criminal.

I guess the Australian government didn't know in the first place who are this people operating from behind. I try to look at the person pointed out by @kenzawak and it seems the website is already down. (https://samkaragiozis.com/). I also try to check AUSTRAC, (http://www.austrac.gov.au/about-us/austrac) which is Australian main agency, having the full responsibility for anti-money laundering and perhaps they did a good job nailing those crypto exchanges being used as front for illegal activities.

kenzawak

hero member

Activity: 658

Merit: 851

This is what I got about this :
https://www.news.com.au/finance/money/wealth/sam-karagiozis-arrested-following-afp-organised-crime-investigation/news-story/564e24fca9ca0bb6d5e37c2fe152196f

The guy's name is Sam Karagiozis.

And apparently one of the exchanges is named Auscoin :
https://finance.yahoo.com/news/auscoin-creator-sam-karagiozis-charged-101035988.html

Quote

"Karagiozis founded Auscoin Group in 2017 and raised $30 million from its initial coin offering (ICO).

He also had plans to open 1,200 Auscoin ATMs in shopping centres around Australia, but his ICO raised less than $2 million."

Not sure there really is a second exchange, this is all I could find.

nc50lc

legendary

Activity: 2534

Merit: 6080

Self-proclaimed Genius

Just one "key member" got arrested and the whole exchange got a serious issue, and based from the article, not even totally crypto-related;
if it is an exchange from my country, chances that one or two members have a questionable background is high.
Guess it's time to move some of my coins out of the local exchange where it is sitting...

Hey OP, are those suspended exchanges "famous" in their local population?
Because I haven't heard of any suspended exchange (international-media/news), guess, it's just another scammy exchange that you can find right here in this board.

Hamphser

sr. member

Activity: 2604

Merit: 338

Vave.com - Crypto Casino

Quote from: kenzawak on March 08, 2019, 02:26:01 AM

Two Australian Bitcoin exchanges shut down following arrest of key executive (good thing they arrested the guy before he could scam anyone)

Just good that they do able to bust out this fella rather than letting this man do all the criminal or illegal things because when time comes out
that he doesn't have enough money to spend or use on buying those drugs and other transactions then his possible option would be taking
all and scam the money into that exchange.So, it was just right or the right time.

hugeblack

legendary

Activity: 2688

Merit: 3983

Many appear to be using these platforms as tools to obtain legitimate money to buy and trade drugs.
As mentioned above, such news encourages the connection between cryptocurrencies and illegal businesses, surprised by the greed of investors to buy more promises-based shitcoins and platforms offering much less collateral than banks.

Outside the text: 30 kg of drugs is a very large amount, in my country, may be punished in prison for too too too tooooo long time.

Tamilson

hero member

Activity: 1022

Merit: 503

In his young age he sounds a mafia, lol! So this 27 year old man had already engage to various crime. But why the report didn't named these alleged criminals and the two exchange sites associated. I did some googling but don't see other news about this.

Quote from: pickupcoin on March 10, 2019, 08:55:20 PM

What is the name of these two exchange? I can't find this info, although I think it is very important to know it

pickupcoin

legendary

Activity: 1203

Merit: 1000

Quote from: kenzawak on March 08, 2019, 02:26:01 AM

Two Australian Bitcoin exchanges shut down following arrest of key executive (good thing they arrested the guy before he could scam anyone)

https://micky.com.au/two-australian-bitcoin-exchanges-shut-down-following-arrest-of-key-executive/

"Micky can reveal two Australian cryptocurrency exchanges have been suspended by AUSTRAC after a ‘key member’ involved in the businesses was arrested during Australian Federal Police raids across Melbourne yesterday.
...
He’s been charged with importing, trafficking and possessing a total of approximately 30 kilograms of drugs, including MDMA, cocaine, methamphetamine and ketamine.

Police will allege the 27-year-old played a key role in directing the operations of a criminal syndicate, which used various dark net sites, Bitcoin accounts and legitimate business for the sourcing, payment and distribution of illicit drugs.

Following the arrest, financial regulator AUSTRAC suspended the registrations of two digital currency exchange businesses the 27-year-old is associated with."

What is the name of these two exchange? I can't find this info, although I think it is very important to know it

1Referee

legendary

Activity: 2170

Merit: 1427

Quote from: OmegaStarScream on March 08, 2019, 03:48:39 AM

Another reason to have more decentralized exchanges and to use them.

The whole ecosystem is working towards that direction as we speak.

The more of these exchanges go down, the more people will be motivated to look into dex'es and actually use them. We still have a long way to go in terms of catching up to the speed and volumes centralized exchanges offer, but the first step is set, and that's what matters.

Interoperability between different chains is what the ultimate goal is. It's a pretty neat feature if clients have it built in and people can exchange one coin for the other without any intermediaries.

bL4nkcode

copper member

Activity: 2142

Merit: 1305

Limited in number. Limitless in potential.

Quote from: TravelMug on March 10, 2019, 09:34:13 AM

Looks like criminals are evolving and using crypto to hide most of their illegal acts.

They did evolved already even in the past few years.

The question is why did the Australian government let that exchange operate without proper inspection or review of that company or even know that the CEO or any executives have a background of being a criminal.

TravelMug

hero member

Activity: 2632

Merit: 833

Quote from: OmegaStarScream on March 08, 2019, 03:48:39 AM

Another reason to have more decentralized exchanges and to use them.

It's not only about scamming the users of the exchange but Its also about giving a bad image about bitcoin and crypto in general. We've seen a similar thing with Paxful, BTC-e and other exchanges in the past.

Exactly my thoughts, specially about the BTC-e thingy years ago.

Looks like criminals are evolving and using crypto to hide most of their illegal acts. I don't know if the man involved in the CEO or that exchange, it only says 'key member'. Anyhow, I'm sure they know what they're doing when they put up this exchange. Unfortunately, they can't still hide from the authorities but I'm sure if will have a impact to the account holders.

magneto

hero member

Activity: 1666

Merit: 753

It's not surprising that there are some crooks that run bitcoin exchanges. There are plenty more that haven't been shut down or even discovered yet, the users of these two are just lucky that they didn't get defrauded at the end of the day because the arrests were made on time.

The thing that I'm surprised about though is the fact that this guy is associated with two exchanges at the same time, and at a high level. Makes you wonder how many "sockpuppet" exchanges are out there owned by the same person/organisation.

Also, this guy got arrested for something that's completely unrelated to scamming. Just imagine how many cases goes unreported and unheard, where people actually get scammed, because there is not enough evidence or leads to establish a case.

Slow death

legendary

Activity: 3164

Merit: 1127

Leading Crypto Sports Betting & Casino Platform

Quote from: kenzawak on March 08, 2019, 02:26:01 AM

He’s been charged with importing, trafficking and possessing a total of approximately 30 kilograms of drugs, including MDMA, cocaine, methamphetamine and ketamine.

this is a major problem facing the world for years, drug trafficking is destroying the lives of many people around the world. But they can not blame bitcoin, I agree that being the owner of the exchange makes sense they close the exchanges. But what if other people want to open exchange? they will be allowed or with this case the government intends to generalize the problem blaming bitcoin?

joniboini

legendary

Activity: 2170

Merit: 1789

Wow, so the 'CEO' is an experienced criminal. No wonder he can get caught and the exchange stopped quickly.

I do agree this shows how centralized exchange posses high danger of exit scamming or fraudulent but tbh if you have problems with CEX you can report tit to government at least, while I don't really know what's the results of such thing. CEX is not that bad as long as government is involved (which is ironic).

OmegaStarScream

staff

Activity: 3500

Merit: 6152

Another reason to have more decentralized exchanges and to use them.

It's not only about scamming the users of the exchange but Its also about giving a bad image about bitcoin and crypto in general. We've seen a similar thing with Paxful, BTC-e and other exchanges in the past.

kenzawak

hero member

Activity: 658

Merit: 851

Two Australian Bitcoin exchanges shut down following arrest of key executive (good thing they arrested the guy before he could scam anyone)

https://micky.com.au/two-australian-bitcoin-exchanges-shut-down-following-arrest-of-key-executive/

"Micky can reveal two Australian cryptocurrency exchanges have been suspended by AUSTRAC after a ‘key member’ involved in the businesses was arrested during Australian Federal Police raids across Melbourne yesterday.
...
He’s been charged with importing, trafficking and possessing a total of approximately 30 kilograms of drugs, including MDMA, cocaine, methamphetamine and ketamine.

Police will allege the 27-year-old played a key role in directing the operations of a criminal syndicate, which used various dark net sites, Bitcoin accounts and legitimate business for the sourcing, payment and distribution of illicit drugs.

Following the arrest, financial regulator AUSTRAC suspended the registrations of two digital currency exchange businesses the 27-year-old is associated with."

Topic: 2 more exchanges down (Read 232 times)