Three individuals have been accused of defrauding New York banks of over $10 million in a complex crypto scam. Zhong Shi Gao, Naifeng Xu, and Fei Jiang are alleged to have exploited the financial system between 2018 and 2022, aiming to convert stolen funds into cryptocurrency and channel them through foreign crypto exchanges. The scam involved recruiting accomplices, mainly foreign nationals from China and Taiwan residing in the United States. The perpetrators targeted bank branches in the New York City area, gaining control of accounts and manipulating wire transfers. They employed deceptive tactics, orchestrating deposits and transfers of funds between accounts linked to their criminal network. They then submitted fraudulent reports to the banks, falsely claiming unauthorized wire transfers. This led the banks to temporarily credit the involved accounts with the transferred funds. The accused swiftly withdrew the funds in cash or converted them into cryptocurrency before the banks could uncover the scheme. The stolen money was sent to crypto exchanges in other countries, making it even harder to trace and recover. The accused individuals now face charges that could result in sentences of up to 80 years, including charges of aggravated identity theft. Authorities have emphasized that the use of cryptocurrency as a tool to conceal identities will not protect fraudsters from accountability. The FBI is committed to ensuring accountability within the criminal justice system and tackling such intricate financial crimes. The prevalence of cryptocurrency scams highlights the need for increased awareness, education, and regulatory measures to protect individuals from falling victim to fraudulent activities.

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Information	Details
Geography	North America
Countries	🇨🇳 🇺🇸
Sentiment	negative
Relevance Score	1
People	Fei Jiang, Zhong Shi Gao, Naifeng Xu
Companies	US Attorney, Southern District of New York, Federal Trade Commission, FBI
Currencies	Bitcoin
Securities	None