Enforcement Actions Target ICO Fraud And Ponzi Schemes, Assets Retrieved From Hacked Exchange

Last week, operators of a Romanian criminal enterprise named the "Bayrob Group" were convicted of cybertheft crimes resulting in $4 million in losses to victims. The unlawful operation began in 2007 and involved viral distribution of malicious software via phishing emails. The malware harvested personal data and diverted processing power for cryptocurrency mining.

This week, U.S. law enforcement arrested four men for wire fraud and conspiracy to offer and sell unregistered securities in a purported cryptocurrency mining pool operation. Victims were lured into the investment scheme through promises of high returns from participation and investment in the scheme. No returns materialized, and the fraudsters swindled would-be investors out of more than $722 million.