Three Men Arrested For Complex Bank Fraud And Cryptocurrency … – Department of Justice
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI), announced today the arrests of ZHONG SHI GAO, a/k/a George, NAIFENG XU, a/k/a Andy, and FEI JIANG, a/k/a Jeffrey, a/k/a Brother Fei, for charges in connection with a scheme to steal and launder millions of dollars from financial institutions, which resulted in the theft of over $10 million. GAO and JIANG were arrested this morning and will be presented today before U.S. Magistrate Judge Robert W. Lehrburger. XU was arrested in Oklahoma and will be presented in the U.S. District Court for the Eastern District of Oklahoma. The case is assigned to U.S. District Judge Colleen McMahon.
U.S. Attorney Damian Williams said: For 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. These charges should serve as a warning to fraudsters and cybercriminals who think they can turn to cryptocurrency to hide their identities together with our partner agencies, we will find you and hold you accountable for your crimes.
FBI Assistant Director in Charge James Smith said: Gao, Jiang, and Xu were arrested for allegedly stealing and laundering more than $10 million dollars by scamming multiple financial institutions and using foreign cryptocurrency exchanges. Schemes like this harm institutions and make it tougher to report suspicious transfers. The arrests today serve as a warning to anyone thinking of attempting to engage in bank fraud. The FBI will hold you accountable in the criminal justice system.
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
Between at least in or about 2018 and in or about 2022, ZHONG SHI GAO, a/k/a George, NAIFENG XU, a/k/a Andy, and FEI JIANG, a/k/a Jeffrey, a/k/a Brother Fei, participated in a scheme with others to steal millions of dollars from financial institutions by causing transfers of funds between accounts they controlled, then falsely and fraudulently reporting that the transfers were unauthorized, which induced the financial institutions to credit them the amount of the transfers. The scheme proceeded in the following manner:
First, GAO, XU, JIANG, and other members of the scheme would recruit other people frequently foreign nationals from China and Taiwan temporarily residing in the United States to open bank accounts at various bank branches in the New York City metropolitan area and elsewhere. Control over these bank accounts would then be given to GAO, XU, JIANG, and other members of the scheme.
Second, GAO, XU, JIANG, and other members of the scheme would arrange for funds to be deposited and transferred between bank accounts controlled by members of the scheme. Next, GAO, XU, JIANG, and other members of the scheme would cause fraudulent reports to be filed with the banks claiming that these wire transfers were unauthorized. This prompted the banks both the bank issuing the wire transfer and the bank receiving the wire transfer to temporarily credit the accounts in the amount of the transferred funds, effectively doubling the amount of money initially deposited into these accounts, even though GAO, XU, JIANG, and other members of the scheme had in fact authorized the transfers and maintained control over the transferred funds all along.
Finally, GAO, XU, JIANG, and other members of the scheme would arrange for the credited funds to be quickly withdrawn as cash or converted into cryptocurrency and moved to foreign cryptocurrency exchanges before the banks realized that the unauthorized-transfer reports were fraudulent. This resulted in GAO, XU, JIANG, and other members of the scheme withdrawing nearly double the money initially deposited while leaving the bank accounts with negative balances.
In total, GAO, XU, JIANG, and other members of the scheme are responsible for over $10 million in actual losses to nearly a dozen banks and financial institutions.
* * *
ZHONG SHI GAO, 31, of Flushing, New York; NAIFENG XU, 37, of Guthrie, Oklahoma; and FEI JIANG, 41, of Brooklyn, New York, are each charged with one count of bank fraud conspiracy, which carries a maximum sentence of 30 years in prison; one count of conspiracy to commit wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison; one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the investigative work of the FBIs Asian and African Organized Crime Squad. Mr. Williams also thanked the FBI Field Office in Oklahoma City for their assistance in the investigation of this case.
This case is being handled by the Offices Violent & Organized Crime Unit. Assistant U.S. Attorneys Andrew K. Chan, James Ligtenberg, and Ni Qian are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described herein should be treated as an allegation.
See more here:
Three Men Arrested For Complex Bank Fraud And Cryptocurrency ... - Department of Justice
- Top 3 Cryptocurrency to Invest Now According to Reddit: Bitcoin, Ethereum, Furrever Token - Yahoo Finance - May 11th, 2024 [May 11th, 2024]
- Only a fool would vote on crypto alone - Blockworks - May 11th, 2024 [May 11th, 2024]
- Uniswap Founder, Cardano's Hoskinson and Mark Cuban Reveals Crypto's Influence on the Next U.S. Presidential ... - Coinpedia Fintech News - May 11th, 2024 [May 11th, 2024]
- Making Sense of the State of Crypto in 2024 - PYMNTS.com - May 11th, 2024 [May 11th, 2024]
- 6 Altcoins To Consider Buying For The Next Bull Run In 2024 - Forbes - May 11th, 2024 [May 11th, 2024]
- CRMClick.io Brings Innovation in Cryptocurrency Trading Technology - AccessWire - May 11th, 2024 [May 11th, 2024]
- Stand With Crypto Forms Political Action Committee - PYMNTS.com - May 11th, 2024 [May 11th, 2024]
- FTX Customers Poised to Recover All Funds Lost in Collapse - The New York Times - May 11th, 2024 [May 11th, 2024]
- Why is the crypto market down today? - Cointelegraph - May 11th, 2024 [May 11th, 2024]
- Behind Nigeria's Arrest of Binance Employee, Claims of a Bribe Request - The New York Times - May 11th, 2024 [May 11th, 2024]
- Binance Returns To India, Adhering To New Regulatory Standards - Finimize - May 11th, 2024 [May 11th, 2024]
- FTX customers are set to recover all funds lost, plus interest - The Washington Post - May 11th, 2024 [May 11th, 2024]
- Crypto Market Watch: Bitcoin touches $63000 mark; notable increase in cryptocurrency market cap - Business Today - May 11th, 2024 [May 11th, 2024]
- This Week in Web3: Wells Notices, Crypto Payments and Usability - PYMNTS.com - May 11th, 2024 [May 11th, 2024]
- Swing State Voters Highlight Cryptocurrency as a Key Issue for 2024 Elections, Survey Finds Bitcoin News - Bitcoin.com News - May 11th, 2024 [May 11th, 2024]
- Interesting Altcoins | May 2024 Cryptocurrency With Room To Grow - ChainBits - May 11th, 2024 [May 11th, 2024]
- FTX's New Plan Could Give 98% of Crypto Customers Back More Than They Lost - Investopedia - May 11th, 2024 [May 11th, 2024]
- Cryptocurrency Super PACs Are Sweeping 2024 Elections - Esquire - May 11th, 2024 [May 11th, 2024]
- Franklin Templeton foresees Solana as third-largest cryptocurrency - crypto.news - May 11th, 2024 [May 11th, 2024]
- Robinhood Stock: Wells Notice Signals Potential SEC Action Over Cryptocurrency Unit - Investor's Business Daily - May 11th, 2024 [May 11th, 2024]
- Bitcoin: Jack Dorsey predicts that the flagship cryptocurrency will reach 1 million - Cointribune EN - May 11th, 2024 [May 11th, 2024]
- Bitcoin price may not retest this year's highs for another five months - CNBC - May 11th, 2024 [May 11th, 2024]
- Consequence of the SEC Lawsuit: Ripple (XRP) Becomes Top-Trending Cryptocurrency - CryptoPotato - May 11th, 2024 [May 11th, 2024]
- Bitcoin falls 3% week on week as price correction continues (Cryptocurrency:BTC-USD) - Seeking Alpha - May 11th, 2024 [May 11th, 2024]
- 1 Top Cryptocurrency to Buy Before It Soars 5,000%, According to Cathie Wood - The Motley Fool - April 16th, 2024 [April 16th, 2024]
- Marijuana Banking, Cryptocurrency Regulation May Be Combined Into Single Bill - PYMNTS.com - April 16th, 2024 [April 16th, 2024]
- Cryptocurrency Market News: Spot Bitcoin ETFs Shift to Outflows Ahead of Halving - Investopedia - April 16th, 2024 [April 16th, 2024]
- Special Report: Cryptocurrency scams on the rise | News | kxly.com - KXLY Spokane - April 16th, 2024 [April 16th, 2024]
- 1 Top Cryptocurrency to Buy Before It Soars 3,186%, According to Cathie Wood - The Motley Fool - April 16th, 2024 [April 16th, 2024]
- Nimiq Pay: Connecting Cryptocurrency with Daily Payments - hackernoon.com - April 16th, 2024 [April 16th, 2024]
- Cryptocurrency scams on the rise | Video | kxly.com - KXLY Spokane - April 16th, 2024 [April 16th, 2024]
- Markets flash early signs of risk from wider Mideast war as crypto prices sink after Iran launches wave of drones at Israel - Fortune - April 16th, 2024 [April 16th, 2024]
- Schumer And Key House Lawmakers Discuss Merging Marijuana Banking Bill With Cryptocurrency Reform - Marijuana Moment - April 16th, 2024 [April 16th, 2024]
- Cryptocurrency on Track to Achieve Mainstream Asset Status within Five Years, 50% of Respondents Confident ... - CXOToday.com - April 16th, 2024 [April 16th, 2024]
- The rise and fall of cryptocurrency giant Binance in Nigeria - The Africa Report - April 16th, 2024 [April 16th, 2024]
- The 208: Cryptocurrency must be reported to the IRS - KTVB.com - April 16th, 2024 [April 16th, 2024]
- 3 Cryptocurrency Meme Coins Set To Surge 200% Post Bitcoin Halving - Watcher Guru - April 16th, 2024 [April 16th, 2024]
- Cryptocurrency: 3 Coins To Buy Amidst The Market Dip - Watcher Guru - April 16th, 2024 [April 16th, 2024]
- RANAEX Secures US MSB Registration: Elevating Trust and Compliance in Cryptocurrency Trading - AccessWire - April 16th, 2024 [April 16th, 2024]
- Cryptocurrency Filecoin Up More Than 4% In 24 hours - Investing.com UK - April 16th, 2024 [April 16th, 2024]
- Cryptocurrency: 3 Coins That Could Hit All-Time Highs This Week - Watcher Guru - April 16th, 2024 [April 16th, 2024]
- UEX.Finance in a Cryptocurrency Exchange Overview | Mint - Mint - April 16th, 2024 [April 16th, 2024]
- Cryptocurrency Alternatives: Emerging Coins to Outshine Shiba Inu in 2024 - Geeks World Wide - April 16th, 2024 [April 16th, 2024]
- Cryptocurrency Stellar's Price Increased More Than 3% Within 24 hours - Investing.com UK - April 16th, 2024 [April 16th, 2024]
- Bitcoin Halving Set to Shake Cryptocurrency World, Miners Brace for Massive Revenue Drop - West Island Blog - April 16th, 2024 [April 16th, 2024]
- Bitcoin (BTC) Halving Creates Uncertainty In the Cryptocurrency Market, How will This Affet Cardano (ADA) and 2000x ... - The Portugal News - April 16th, 2024 [April 16th, 2024]
- Title: Unlocking Cryptocurrency Success with BEFE, BRISE, and CENX - Geeks World Wide - April 16th, 2024 [April 16th, 2024]
- Navigating High ROI in Cryptocurrency: Ethereum (ETH), Shiba Inu (SHIB), and Furrever Token (FURR) - Yahoo Finance - April 13th, 2024 [April 13th, 2024]
- From Cryptocurrency to Cinema: SHIB's Groundbreaking Deal with CDSA - hackernoon.com - April 13th, 2024 [April 13th, 2024]
- No one needs this cryptocurrency-powered Steam Deck competitor - Ars Technica - April 13th, 2024 [April 13th, 2024]
- What is Bitcoin halving and is it a good time to buy? - Quartz - April 13th, 2024 [April 13th, 2024]
- Psycholinguistic and emotion analysis of cryptocurrency discourse on X platform | Scientific Reports - Nature.com - April 13th, 2024 [April 13th, 2024]
- Cryptocurrency Prices And News:Cryptos Slide On CPI Report; Bitcoin Halving Ahead - Investor's Business Daily - April 13th, 2024 [April 13th, 2024]
- Analyzing the Surge in Cryptocurrency Popularity: Bitcoin Phenomenon - Eye On Annapolis - April 13th, 2024 [April 13th, 2024]
- Cryptocurrency Price on April 12: Bitcoin trades above $71,000; Ethereum, Toncoin decline up to 3% - The Economic Times - April 13th, 2024 [April 13th, 2024]
- This Cryptocurrency Exchange-Traded Fund (ETF) Could Soar 5,300%, According to Cathie Wood's Ark Invest - Yahoo Finance - April 13th, 2024 [April 13th, 2024]
- Is the Perfect Time to Invest in Cryptocurrency Post-Bitcoin Halving? - Yahoo Finance - April 13th, 2024 [April 13th, 2024]
- Unsolved mystery: How much power is crypto using? - E&E News by POLITICO - April 13th, 2024 [April 13th, 2024]
- Dogecoin Co-Creator Billy Markus Sarcastically Signals Caution Amid Cryptocurrency Market Crash: 'Oh No Everything ... - Investing.com UK - April 13th, 2024 [April 13th, 2024]
- Westlake convenience store owner helps thwart crypto scam - WKYC.com - April 13th, 2024 [April 13th, 2024]
- Millennials and Gen Z are as likely to own cryptocurrency as they are real estate - PR Newswire - April 13th, 2024 [April 13th, 2024]
- TON blockchain on Telegram teams with HashKey to help Asian users trade crypto - South China Morning Post - April 13th, 2024 [April 13th, 2024]
- Cryptocurrency Regulations and Safety Measures in the USA and New York: Exploring No-KYC Exchanges - FinSMEs - April 13th, 2024 [April 13th, 2024]
- This Popular AI Cryptocurrency Explodes by 15% Following Support From Binance - CryptoPotato - April 13th, 2024 [April 13th, 2024]
- PricePrediction.AI Revolutionizes Cryptocurrency Research with Free AI-Powered Platform - PR Web - April 13th, 2024 [April 13th, 2024]
- Cybersecurity professional sentenced to prison for $12 million cryptocurrency theft - NewsBytes - April 13th, 2024 [April 13th, 2024]
- 10 Emerging Cryptocurrency Picks for Potential Wealth in 2024 - Analytics Insight - November 23rd, 2023 [November 23rd, 2023]
- DeFi Technologies to launch XRP ETP in Europe in December By Investing.com - Investing.com - November 23rd, 2023 [November 23rd, 2023]
- We are all tech lawyers now the future of cryptocurrency - Law Society Journal - November 23rd, 2023 [November 23rd, 2023]
- Bitcoin and Ethereum see weekly gains amid mixed cryptocurrency ... - Investing.com - November 23rd, 2023 [November 23rd, 2023]
- Justin Sun's cryptocurrency venture loses over $100m in recent hack - crypto.news - November 23rd, 2023 [November 23rd, 2023]
- Blockchain Beyond Cryptocurrency: Exploring its Potential Across ... - Robotics and Automation News - November 23rd, 2023 [November 23rd, 2023]
- US Department of Justice to Announce Cryptocurrency Enforcement ... - Tekedia - November 23rd, 2023 [November 23rd, 2023]
- Exploring Cryptocurrency Horizons: A Comparative Analysis of ... - Finbold - Finance in Bold - November 23rd, 2023 [November 23rd, 2023]
- Analysis of Solana Cryptocurrency - ForexLive - November 23rd, 2023 [November 23rd, 2023]
- From Bits to Bitcoins: The Rise of Cryptocurrency in Web Hosting - Analytics Insight - November 23rd, 2023 [November 23rd, 2023]
- Role of NFTs in Driving Cryptocurrency Valuations Up - Analytics Insight - November 23rd, 2023 [November 23rd, 2023]
- Increasing Enthusiasm for a Cryptocurrency Predicted to Surge by ... - Analytics Insight - November 23rd, 2023 [November 23rd, 2023]
- Cryptocurrency Showdown: dYdX vs. BorroeFinance Who Will ... - Analytics Insight - November 23rd, 2023 [November 23rd, 2023]
- 1.2m in cryptocurrency seized in major fraud operation - RTE.ie - November 23rd, 2023 [November 23rd, 2023]