A Serbian individual accused of orchestrating extensive cryptocurrency and binary options fraud has been extradited to the United States, indicating a significant advancement in the crackdown on global financial cybercrime. According to the Department of Justice, he helped to create and market more than 20 fraudulent trading platforms.

Cross-Border Justice in Action

Kristijan Krstic, 48, was apprehended in Georgia on US warrants and now faces charges in two separate federal indictments in Texas and New York. This development underscores the collaborative international efforts to combat cybercrime and highlights the increasing significance of cryptocurrency in financial fraud.

In Texas, Krstic is accused of defrauded investors out of $70 million through deceptive digital investment ventures. The grand jury indictment outlines a conspiracy involving over a dozen individuals operating on various fraudulent platforms designed to lure in investors. The charges of wire fraud and money laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term conspiracies carry potential 20-year prison terms per count, reflecting the gravity of the offenses.

“This extradition is the result of continued coordination between the Justice Department and our Georgian law enforcement partners in the fight against transnational organized crime,” said Nicole M. Argentieri, the acting Assistant Attorney General of the Justice Department’s Criminal Division. “We are committed to protecting the people of this nation by investigating and prosecuting individuals involved in cryptocurrency fraud.”

Leader of $70M Cryptocurrency and Binary Options Fraud Schemes Extradited to the U.S.https://t.co/COslk2Rhs2

— Criminal Division (@DOJCrimDiv) November 3, 2023

A Web of Deception

The accused played a central role in crafting over 20 sham investment platforms, exploiting the allure of high returns on digital assets.

“According to court documents, the defendants allegedly helped create and market more than 20 fraudulent cryptocurrency and binary options investment platforms,” the Department of Justice commented. They included Start Options, Trinity Mining, Hedger Tech, BTC Mining Factory, and many more.

In the Eastern District of New York, Krstic faces additional charges for operating two bogus online investment platforms, Start Options and B2G, which siphoned approximately $7 million from US investors. The indictment depicts Krstic as a mastermind who deftly manipulated the cryptocurrency market's opacity to defraud investors, leading to his indictment on securities fraud and additional money laundering charges.

Two weeks ago, the US court revealed additional cases of binary options fraud, including one that involved Neil Phillips, the former Chief Investment Officer of London-based hedge fund Glen Point Capital. The fund was launched with financial backing from Geroge Soros.