Scam Cryptocurrency Recovery Site Shut Down
June 7, 2023
Today, Manhattan District Attorney Alvin L. Bragg, Jr. declared the successful operation against Coin Dispute Network, an alleged deceptive cryptocurrency recovery firm, by seizing its website domain. This incident marks the inaugural crackdown on a cryptocurrency recovery site by the Manhattan DA's Office, reflecting the growing concern over such services in recent years.
DA Bragg lauded the team of prosecutors, investigators, and cryptocurrency analysts whose expertise led to the takedown of the fraudulent platform. He reiterated the dedication of his Cybercrime and Identity Theft Bureau to the protection of individuals from such financial scams in Manhattan, recognized worldwide as a financial hub. The DA's Office encourages any victims of Coin Dispute Network to come forward in order to bring the responsible parties to justice and mitigate future fraudulent activities.
Coin Dispute Network, claiming to be a cryptocurrency asset recovery service, falsely promised to help recover stolen cryptocurrency assets in return for a fee. However, the DA's Office alleges that the company not only retained the fee but also illicitly extracted further Ethereum from their clients by falsely promising to recover their assets and issuing misleading blockchain tracing reports.
Currently, a banner alerts visitors to the site's seizure by court order. The criminal inquiry that started in November 2022 continues.
In 2022, the DA's Cybercrime and Identity Theft Bureau successfully located and seized over $1.3 million in stolen cryptocurrency using their blockchain analysis capabilities. For anyone who thinks they might have been targeted by a cryptocurrency scam, the Manhattan District Attorney’s Office's Cybercrime and Identity Theft Helpline at 212-335-9600 is available for reporting.
The article also offered tips on how to identify cryptocurrency recovery scams, reminding people to be cautious when approached by a service offering to recover lost money. Scams may include 'double victimization', where fraudulent companies contact previous scam victims to exploit them further. It's important to remember that legitimate bank employees, government officials, and representatives from utility services and corporations will never ask for personal information without proper disclosures, contact you via social media with offers, or request payment via gift card, cryptocurrency, or wire transfer.
The investigation of this case is being conducted by Assistant DA Virginia Nguyen, under the guidance of Assistant DAs Alona Katz, Robert Shull, Jeremy Glickman, and Jodie Kane from the Cybercrime and Identity Theft Bureau. Cryptocurrency Analyst Kelly Kenny and Senior Rackets Investigator Ethan Zubkoff are also contributing to the investigation, under the supervision of Greg Dunlavey. The High Technology Analysis Unit has provided critical support during the website seizure. Former Assistant DA David Ginensky also played a role in the investigation.
DA Bragg also acknowledged Michael Grabowski and Matthew Hogan of the Connecticut State Police for their assistance in this case.