Ponzi OneCoin implicitly appeared in recently leaked FBI intelligence bulletin on money laundering risks
In a recently leaked FBI about the risk of money laundering of private equity funds, the famous Ponzi OneCoin seems to have been mentioned (by the unnamed newsletter) as an example of scam cryptocurrency investment plans.
Although not named, the bulletin from the FBI stated many details very similar to Ponzi OneCoin
One of the reasons FPI published this newsletter was because US criminals and foreign rivals could use hedge funds, private equity, and other investment vehicles to circumvent anti-money laundering (AML) procedures of financial institutions.
One of four examples given by FBI analysts regarding a fraudulent cryptocurrency investment plan. Although not named, the story told in the newsletter bears a striking resemblance to OneCoin.
The FBI said:
“An identified former partner of a major US law firm assisted others in laundering more than $ 400 million in proceeds for the unnamed scheme.”
This information was coincidental because in November last year, Mark Scott, a former partner of Locke Lord, was convicted of money laundering up to $ 400 million – similar to information from the FBI – for OneCoin. According to a report from the FBI, the lawyer (who spoke on condition of anonymity) transferred money through a series of private equity funds to hold accounts at financial institutions, including those in the Cayman Islands and the Republic of Ireland. In the same vein, Scott did the same thing in the same jurisdictions.
The FBI news stated:
“The underlying source of funds, the perpetrator of the cryptocurrency scheme, was not disclosed to the bank during the initial due diligence review.”
And prosecutors accused Scott of hoodwinking the Bank of Ireland in this same way.
The FBI cited public information as well as a human resource with direct access to its account. Three other examples of money laundering through private funds do not mention cryptocurrencies.
Reuters first reported on the news on Tuesday. The bulletin is not categorized, but law enforcement is sensitive, meaning it is not shared outside the federal government without the FBI’s permission.
Although OneCoin is a scam, Scott’s concealed references to the crime in the FBI newsletter are a reminder that banks, not cryptocurrencies, have been used to clean up the illicit gain.
- Sohrab Sharma Behind Centra Tech ICO Scam To Face Prison Following The Conviction Of Robert Farkas In June
- U.S. Authorities Have Accused A Man Of Securing COVID-19 Relief Funds To Invest In Cryptocurrency