Category: Crypto Scandal

Crypto scandals refer to events involving fraud, mismanagement, or unethical behavior within the cryptocurrency industry. These incidents often lead to significant financial losses, loss of trust, and negative public perception of cryptocurrencies and blockchain technology.

Brazil Sentences Braiscompany Crypto Scam Team to Over 170 Years in Prison

Three key figures behind one of Brazil’s largest crypto scams have been sentenced to a combined 170+ years in prison for their roles in the fraudulent Braiscompany operation. The group tricked around 20,000 investors out of roughly R$1.11 billion (US$190 million) by promising high returns from crypto investments that never existed.

Court Gives Harsh Sentences After One of Brazil’s Biggest Crypto Scam

X post regarding the Scam

The main figure, Joel Ferreira de Souza, received 128 years, 5 months, and 28 days in prison for leading the fake investment scheme. He ran shell companies and moved funds through secret crypto wallets in an attempt to launder the money. Judge Vinicius Costa Vidor said the group “acted to disguise the illicit origin” of their operations.

Others convicted include:

  • Gesana Rayane Silva – sentenced to 27 years, 10 months, and 10 days for managing money flow and deals.
  • Victor Augusto Veronez de Souza – sentenced to 15 years for helping with illegal transactions. He is also Joel’s son.

The court found the defendants guilty of running a pyramid scheme that was disguised as a legitimate crypto business. The company looked professional on the outside, but it was built only to benefit the insiders.

Authorities have seized R$36 million in funds linked to the scam, but it’s unclear how much will be returned to victims. Victims’ lawyer Artêmio Picanço urged quick civil action:

“People have to file civil claims soon before the state takes the money.”

Two other people accused were acquitted due to lack of evidence.

This case follows the earlier arrest and extradition of Braiscompany founder Antonio Inacio Da Silva Neto and his partner Fabricia Farias Campos, who were captured in Argentina and brought back to Brazil.

  • Da Silva Neto is serving 88 years.
  • Campos received 61 years and 11 months.

The case highlights Brazil’s growing crackdown on crypto fraud and its efforts to hold perpetrators accountable.

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North Korean IT Workers Intensify Infiltration of European Tech and Crypto Firms

North Korean (DPRK) IT workers are increasingly infiltrating European tech and crypto firms, using fake identities to land high-paying jobs and funnel earnings back to the regime.

North Korean IT Workers Ramp Up Infiltration of Tech and Crypto Firms Across Europe

Since its last report in September 2024, Google’s Threat Intelligence Group has observed a rise in DPRK-linked workers securing roles in blockchain and tech companies. These individuals create multiple fake personas, sometimes using fabricated references. One worker operated under 12 different identities across Europe and the U.S., targeting defense and government sectors.

North Korea IT worker's Target places in March
 List of countries impacted by DPRK IT workers

In the UK, some DPRK IT workers were found developing Solana and Anchor/Rust smart contracts and building blockchain-based platforms. Investigations also uncovered a network of facilitators helping them bypass job verification processes.

With sanctions tightening, North Korea relies on cyber operations for revenue. The U.S. Treasury estimates these IT workers generate hundreds of millions annually, with up to 90% of wages seized to fund military projects.

Beyond financial gain, DPRK IT workers also enable state-sponsored hacks. The Lazarus Group, linked to the $1.5B Bybit hack, has exploited these infiltrations to breach internal systems. As scrutiny in the U.S. rises, North Korean infiltration is expanding across Europe.

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5 Shocking Facts About the Coinbase Hack Attempt – A Massive Cyberattack Stopped Just in Time!

Coinbase

The Hacker’s Initial Moves

Before launching the attack, the hacker tested over 20 different code variations, looking for a way in. Once it detected and blocked their attempts, they pivoted to a new target—all versions of tj-actions/changed-files.

A Massive Threat to GitHub Repositories

The attack put 23,000+ repositories at risk, but security firm Unit 42 believes the real number could be even higher. Meanwhile, Wiz, another cybersecurity firm, investigated the attacker’s identity and found they are likely an active crypto community member based in Europe or Africa. Coinbase has yet to make an official statement, but experts confirm they stopped the attack before major damage occurred.

Shifting Targets: From Coinbase to GitHub Users

After failing to break into Coinbase, the attackers switched strategies and targeted a massive number of GitHub users instead. Security firm Endor Labs found at least 218 repositories had been compromised, leading to leaks of AWS, npm, Dockerhub, and GitHub access tokens—essentially login credentials for developer tools. Fortunately, most tokens expired quickly, reducing the impact.

Learn more about them on this website

How Coinbase’s Quick Response Limited the Damage

Endor Labs researcher Henrik Plate noted that the attack seemed intense at first, but its rapid response forced the hacker to adapt.

Could This Have Been Another ByBit-Scale Hack?

Yu Jian, founder of SlowMist, compared this attack to the ByBit hack in February 2025, where they stole $1.5 billion. He urged developers using GitHub tools like tj-actions to perform regular security audits to prevent future breaches.

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Hackers Exploit Watcher.Guru’s About 2.9M Followers to Spread Lies

Hackers Promote XRP by Breaching Watcher Guru’s Socials

On March 21, Watcher Guru’s X account was hacked, leading to the spread of misleading information about XRP and its alleged partnership with SWIFT for cross-border payments. The hacker claimed that XRP would be integrated into SWIFT’s system, with billions of XRP locked in escrow and liquidity growing.

The platform quickly issued a warning, confirming that the post was fraudulent and removed it immediately. They reassured followers that their two-factor authentication (2FA) was enabled, but despite these security measures, the hack was successful.

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image 25 Bitmala

Watcher Guru’s breach raised questions about broader security risks in the crypto space, as even with 2FA and no apparent linked apps, the account was compromised. Furthermore, their automatic reposting setup, designed to share breaking news across platforms like Telegram and Facebook, inadvertently amplified the hacker’s message before it was deleted.

The incident happened at 2:05 AM UTC, and while Watcher Guru took swift action to secure their accounts, there are lingering concerns about the nature of the hack. Interestingly, on the same day, SWIFT made a major announcement about enhancing crypto payments, leading some to speculate whether Watcher Guru had accidentally leaked inside information.

Californian Man Sentenced to 7 Years for Crypto Money Laundering

Summary: John Khuu, a California resident, has been sentenced to 87 months in prison for laundering money through Bitcoin and selling fake drugs on the dark web. His arrest was part of Operation Crypto Runner.

A California man, John Khuu, has been sentenced to seven years and three months in prison for running a cryptocurrency-based money laundering scheme and selling counterfeit drugs. According to the U.S. Department of Justice, Khuu used Bitcoin to facilitate illegal transactions on the dark web.

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Authorities in Texas presented evidence that Khuu illegally imported fake MDMA from Germany and sold it to U.S. customers through dark web marketplaces. He received payments in Bitcoin, which he later converted into U.S. dollars. He was also indicted separately in the Northern District of California for unlawfully importing a Schedule I controlled substance.

His arrest was part of **Operation Crypto Runner**, an initiative targeting high-level criminal organizations involved in illegal crypto activities. Khuu had faced multiple legal charges before his sentencing. The Eastern District of Texas charged him with money laundering on May 18, 2022, while the Northern District of California charged him with drug importation on August 17, 2022.

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Authorities finally arrested him on August 19, 2022, at a residence in Garden Grove, California.

Pi Network Fans vs. Binance: Fake News Sparks Drama Over Exchange Listing!

Pi Network fans mad at Binance for not listing Pi. Fake news spread about Binance’s rating drop, but it’s false.

Binance, the world’s largest crypto exchange, is under fire from Pi Network fans, aka “Pioneers,” who feel betrayed.

The drama started when Binance ran a poll asking if Pi should be listed. Pioneers got hyped, expecting an actual listing. But Binance hasn’t given any updates, and now, Pi fans are furious.

Some social media users falsely claimed that Binance’s Google Play rating dropped to 1.5 stars because Pi supporters spammed 1-star reviews. But that’s straight-up fake news. Binance’s real rating is still at 4.2 stars.

Binance Rating On Google Play Store
Binance Rating on Google Play Store
Sure, some Pioneers might’ve left bad reviews, but the actual impact is minimal. Binance’s App Store rating did drop from 4.8 to 4.2, but nothing close to the claimed freefall.

Pi fans accuse Binance of using the poll just for social media engagement, not an actual listing. But others in crypto think review-bombing won’t work. One user said, “Stop using Binance’s rating as a hostage to list your coin.”

Meanwhile, Binance remains silent. But let’s be real—bad reviews alone won’t force the biggest exchange to list Pi.

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FIFA Explores Launching Its Own Cryptocurrency Token

Summary: FIFA President Gianni Infantino has signalled the possibility of introducing a FIFA cryptocurrency token, with the U.S. market being prioritized. During his speech at President Trump’s White House Crypto Summit, Infantino mentioned FIFA’s interest in using blockchain for fan engagement. Though news is scarce, the announcement caused a stir, sending a massive boom to an unrelated token named “FIFA.” The move comes amidst broader cryptocurrency initiatives under the Trump administration, including the establishment of a U.S. Strategic Bitcoin Reserve.

FIFA President Gianni Infantino has hinted that the organization could develop its own cryptocurrency token in order to attract its global fans.

Infantino addressed at President Trump’s White House Crypto Summit and stated that FIFA is “very, very interested” to launch a FIFA coin, perhaps originating from the U.S. He invited potential partners to come on board and work with him on the token, hyping the scope of the coin among the sport’s 5 billion fans.

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Trump adopted the idea, adding jokingly that “the coin could be worth more than FIFA itself in the end.” No official details or timeline were provided, but the announcement is a sign of FIFA’s growing interest in blockchain technology for revenue and fan interaction.

Following the summit, market volatility caused a 357,000% surge in an independent token named “FIFA,” which briefly hit an $8.2 million market cap. The token is not officially related to FIFA, though.

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The controversy comes as FIFA prepares for the 2026 World Cup, to be hosted by the U.S., Canada, and Mexico. It also comes on the heels of new crypto initiatives under the Trump administration, including a U.S. Strategic Bitcoin Reserve.

Sam Bankman-Fried Turns 33 in Jail, Claims Strong GOP Ties in New Interview

Summary: In a behind-bars interview, FTX’s former CEO Sam Bankman-Fried spoke about his political affiliations, life in prison, and ongoing court theatrics. He claimed to be nearer to Republicans than everyone assumed and stood up for former colleague Ryan Salame. Bankman-Fried’s legal team is appealing his 25-year sentence while his parents seek a presidential pardon.

Sam Bankman-Fried marked his 33rd birthday in prison with a candid interview, reflecting on his conviction, political ties, and life behind bars. Speaking to Tucker Carlson on March of this year, the former FTX CEO insisted he wasn’t a criminal and argued that charges against ex-colleague Ryan Salame were politically driven due to Salame’s Republican affiliations.

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Despite his well-known donations to Democrats, Bankman-Fried claimed he had a better relationship with Republicans in Washington than the public realized. He is currently serving a 25-year sentence at Brooklyn’s Metropolitan Detention Center, where he mostly eats rice and beans and has had no contact with former FTX employees.

Sorry for those colleagues who collaborated with prosecutors, he maintained that the majority had no choice but to comply. His attorneys appealed, and his parents are said to be pursuing a potential presidential pardon by Donald Trump.

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The 2022 FTX collapse led to multiple convictions, with Bankman-Fried now awaiting the outcome of his appeal as legal processes continue.

TRM Labs Report: ISKP Uses Monero (XMR) for Crypto Fundraising, Highlights Shift in Terror Financing

TRM Labs finds ISKP using Monero (XMR) for fundraising. Crypto crime fell 24%, but privacy coins remain a challenge!


San Francisco-based blockchain intel firm TRM Labs, recognized by the World Economic Forum, just dropped its “2025 Crypto Crime Report,” revealing how the Islamic State Khorasan Province (ISKP) is using Monero (XMR) to collect donations.

ISKP, which gained prominence after the U.S. withdrawal from Afghanistan, has been traced to have fundraising networks in India. Its official media outlet, Voice of Khorasan, has been actively encouraging Monero donations. TRM Labs’ report says ISKP prefers Monero due to its privacy features, which make transactions hard to track.

Although illegal cryptocurrency transactions declined 24% in the past year, criminals are catching on. Chainalysis reports highlight that crime involving stablecoins increased 63% in the past year, as malicious actors shift away from volatile assets and into more stable digital currencies.

Terrorism-related networks are also using unidentified wallets, mixers, and fake KYC proofs to avoid law enforcement. Monero’s anonymity is also making it a tool of choice for criminal finance, but its volatility could push criminals towards stablecoins in the near future.

As security is being increased, both criminals and law enforcement are evolving their tactics in the cat-and-mouse game of crypto crime.

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Bybit Hacker Launders $1.4B in Record Time, Security Experts Race to Recover Funds

Bybit’s hacker laundered $1.4B in 10 days via THORChain. Experts suspect Lazarus Group. Security firms still tracking stolen funds.



The hacker behind the biggest crypto theft ever just pulled off the impossible—laundering all $1.4 billion worth of stolen funds in just 10 days. The exploit, which happened on February 21, saw over 500,000 ETH vanish from Bybit. The attacker used THORChain, a decentralized exchange that allows seamless crypto swaps without centralized oversight.

Blockchain security firm Lookonchain confirmed that 499,395 ETH ($1.04B at today’s prices) has been fully laundered. The original theft was $1.4B, but due to Ethereum’s price drop from $2,839 to $2,067, the stolen funds’ value also decreased.

Experts believe North Korea’s Lazarus Group is behind the attack. South Korea even sanctioned 15 North Koreans for funding nuclear weapons through crypto hacks. Despite advanced laundering techniques, security firms think they might still track some stolen funds.

Bybit moved fast, replacing all $1.4B by February 24, assuring users that withdrawals remained unaffected. CEO Ben Zhou stated that 77% of the funds are still trackable, but over $280M is completely gone.

Crypto firms are now pushing for better security, with off-chain transaction validation emerging as a potential fix to stop future hacks before they happen.

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