Summary of Bitcoin, web3, Ethereum, and cryptocurrency:
- Manhattan DA Alvin Bragg announced criminal charges against Michael Lauchlan for operating a fake crypto asset recovery business.
- Lauchlan deceived clients through his company, Coin Dispute Network (CDN), by falsely claiming to recover lost crypto assets.
- Charges against Lauchlan include three counts of grand larceny and two counts of scheme to defraud.
- CDN offered services like blockchain analysis and asset recovery, but Lauchlan exploited customers’ lack of experience to steal funds.
- Authorities seized the CDN website in June 2023 and arrested Lauchlan in July 2024 in Las Vegas.
- The DA’s office identified $14,000 in user funds transferred to CoinEx by CDN and spoke to over 175 affected individuals.
Legal Charges Against Michael Lauchlan
Manhattan District Attorney Alvin Bragg recently announced criminal charges against Michael Lauchlan for his involvement in a fraudulent crypto asset recovery business. Lauchlan, using the alias Max Handler, deceived customers through the company Coin Dispute Network (CDN) by falsely claiming to help recover lost crypto assets. Operating under the guise of CDN’s vice president and chief recovery officer, Lauchlan tricked clients into paying in Ethereum to consult with a “recovery analyst.” He then deceitfully promised to locate and retrieve their lost crypto assets for an additional fee but instead pocketed the funds without providing the promised services.
Details of the Crypto Scam
Between July 2022 and June 2023, CDN purportedly offered services like blockchain analysis, tracing, and recovery of lost crypto assets, but these were mere deceptions orchestrated by Lauchlan. Taking advantage of customers’ limited knowledge of the cryptocurrency industry, Lauchlan exploited them to siphon off their funds. Following an investigation, the Manhattan DA’s office seized the CDN website in June 2023 and subsequently arrested Lauchlan in July 2024 in Las Vegas. The DA’s office has since identified approximately $14,000 in user funds transferred to CoinEx by CDN and has engaged with over 175 individuals affected by the scam.
