Crypto Recovery Services Fraud Revealed, Perpetrators Arrested In Las Vegas

Crypto recovery service fraud was uncovered, the perpetrator was arrested in Las Vegas (Photo; Doc. Sedgroup)

JAKARTA - The crypto world was again rocked by news of Michael Lauchlan's arrest, a fake crypto recovery service operator who has deceived many victims. Lauchlan, who runs Coin Dispute Network (CDN), promises to recover lost crypto assets, instead outwits its customers and takes their assets.

This arrest was made by New York's Homeland Security Investigations (HSI), which uncovered a fraudulent scheme that is detrimental to many people. With the cunning modus operandi, Lauchlan managed to trick the victims with false promises and fake blockchain tracking reports. Now, he has to face the legal process for his fraudulent acts.

According to HSI, Lauchlan uses a cunning scheme to convince victims that he can return lost cryptocurrencies, especially Ethereum (ETH), by charging upfront fees. However, instead of restoring the promised cryptocurrencies, he actually took the fee and added more ETH than at least three victims who were identified.

Lauchlan used fake blockchain tracking reports to strengthen his fraudulent claims. He also disguised himself as 'Max Handler' and claimed to be vice president and chief recovery officer of CDN. To increase credibility, the CDN website is filled with fake testimonials and fabricated news articles.

Michael Lauchlan allegedly exploited his customers' ignorance of the crypto industry and deceived them with fake services and stolen assets, said Ivan J. Arvelo, the special agent who led HSI New York. "Today, his fake promises and unethical business practices have finally come to light."

According to Bitcoin.com News information, between July 2022 and June 2023, CDN managed to trick many customers into paying upfront fees, but none of them managed to regain their cryptocurrencies. The investigation revealed that about 14,000 US Dollars (approximately IDR 224 million) in cryptocurrency have been transferred to the Coinex exchange as part of this fraudulent activity.

Lauchlan's arrest at Harry Reid International Airport, Las Vegas, last month was the result of a coordinated collaboration between HSI Las Vegas and US Customs and Border Protection Field Offices. Now, Lauchlan must face legal proceedings for his fraudulent actions that have harmed many people.