A Serbian man has been charged in an indictment filed Tuesday with embezzling $7 million from U.S. investors through two fraudulent cryptocurrency platforms.
- According to the indictment from the U.S. Justice Department, Kristijan Krstic, 45, was the founder of "Start Options" and "B2G," two digital-asset investment platforms, which fraudulently induced U.S. investors to purchase securities in the form of investment contracts.
- Start Options purported to provide cryptocurrency mining and trading services, while B2G claimed to be an "ecosystem" for the exchange of B2G tokens, cryptocurrency and fiat money.
- The money invested by users was laundered through a Philippines-based account and digital currency wallet.
- Then $7 million was transferred to Krstic via a promoter in the U.S. at which point he stopped responding to communications, tweeting that "the time has come to find new challenges and opportunities."
- Krstic had previously communicated with investors using the alias "Felix Logan" and the Twitter handle "@felixlogan_cfo".
See also: Serbian Man Extradited to US After Being Indicted in $70M Crypto Fraud
Disclosure
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.