Trader raised $ 4 million to invest in bitcoin and spent money in a casino

By Kluma | InterestingCrypto | 17 Jul 2020

The US court considered the case of Douglas Kim, he is accused of cryptocurrency fraud. The suspect took control of digital assets, promising to use them for "reliable" earnings, which turned out to be gambling

The US court held a hearing in the case of American Douglas Kim, he is accused of organizing a cryptocurrency scam worth millions of dollars. The FBI claims the suspect collected money from friends under the pretext of "safe" investments in digital assets such as Bitcoin and Ethereum. In fact, Kim used the funds he received for betting in online casinos, details are given on the official website of the US Department of Justice.

According to the FBI, Kim first approached his acquaintances with a request to provide capital for management in 2017. Similar proposals came several more times over the next two years. The suspect was able to convince his friends to provide funds, stating that he himself invested $ 300,000-400,000, and this is a "safe investment." Thus, the defendant attracted 123 BTC, 15,500 Ethereum and another $ 30,000. In total, the borrowed amount amounted to more than $ 4.5 million, more than half of which was spent on gambling immediately after receipt.

The prosecution claims that Kim is a fraud, as he did not disclose the details of his investment plan. If investors were aware, they would not have provided funds. If the suspect is proven guilty, he faces up to 20 years in prison and a $ 250,000 fine. The next hearing is scheduled for August 19.

July 15 it became known that a resident of the American Houston illegally received $ 1.1 million in support from the state and spent part of this money on cryptocurrency. The US Department of Justice has filed multiple charges of abuse of the COVID-19 payment protection program.

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