New York man accused of $1.8m crypto fraud

Chet Stojanovich, also known as Chester J. Stojanovich, has been charged with defrauding crypto investors of $1.8m in New York.

The US attorney for the Southern District of New York, Michael J. Driscoll, brought charges against Stojanovich who is believed to have stolen the $1.8m from victims by luring them to commit to a bogus investment scheme pertaining to crypto mining equipment.

Stojanovich allegedly promised his victims he would provide them with an unlimited stream of “hash power” which could be converted into cryptocurrency.

The victims were supposed to receive mining hardware and hosting, but Stojanovich made little or no effort to deliver on any of the agreed-upon equipment.

Stojanovich was arrested when crossing into the US from Canada last week with his case representing the latest effort by the FBI to root out financial fraud related to the crypto sector.

The investigators claim that Stojanovich defrauded victims of a total of $1.84m using deceptive practices and failing to deliver on promises regarding the purchase of relevant hardware equipment that the accused had no intention of purchasing.

As a result, Stojanovich now faces one charge of wire fraud, which carries a maximum penalty of 20 years in prison.

US intelligence services have become increasingly successful in cracking down on fraudulent activities in the sector.

The US Secret Service claim to have successfully seized $102m worth of stolen cryptocurrency since 2015. In February, federal investigators busted a couple from New York tied to a $4.5bn scam.

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Updated: 04/25/2022 — 11:00