ZyCrypto co-founder of $ 722 million worth of Bitcoin fraud program arrested on sex charges in Indonesia
Russ Albert Medlin, the founder of the infamous Bitcoin Club Network, was arrested by Jakarta police. Medlin, previously indicted by the U.S. Department of Justice of $ 722 million in cryptocurrency fraud, was arrested Monday in South Jakarta for sexual activity with underage girls, according to a Jakarta media company.
In conversation with the media company, Chief Cmr. Yusri Yunus, a police agent who confirmed that Medlin has been in police custody since Monday, said authorities have since spoken to the Federal Bureau of Investigation (FBI) while awaiting an “extradition request from the American embassy.”
Yunus noted that police had become suspicious of Medlin’s residence when they were informed that minors between the ages of 15 and 17 were frequently visiting the 46-year-old American. When questioned by the police, the girls admitted to having paid Rp 2 million (142) from Medlin to engage in sexual acts with him while they were being videotaped and photographed.
Police then recorded surveillance cameras at his home on Sunday, which later showed three teenage girls leaving his home. Medlin was previously found guilty of sexual abuse in the United States for filming molesting a 14-year-old and was jailed by a Nevada district court in both 2006 and 2008.
While Jakarta’s director of police chief Cmr. Roma Hutajulu could not confirm how long Medlin had been in Indonesia, he confirmed that the refugee had a tourist passport and that despite the red message from Interpol, he must have escaped immigration.
Under the Child Protection Act of 2014, persuading minors to engage in sexual activity is a criminal offense that entails a 15-year prison term. However, it is possible that Medlin will be convicted in the United States, as both Indonesia and the United States are known for exchanging refugees.
The $ 722 million Bitcoin Club Ponzi program
The BitcoinClub network, which ran from 2014 to 2019, disguised itself as a bitcoin mining platform, forcing investors to invest, recruit, or sponsor new members in an effort to generate revenue that even after the Realization of block bonuses by the company was not achieved. And even when participating users were asking for their earnings, they were being charged exorbitant fees.
Initially, the “mining network” gave itself up as an anonymous team of geeks and developers who promised investors transparency and decentralization. After a series of research, the network was traced back to Medlin, who was a co-founder. In 2019, the U.S. Attorney’s Office in New Jersey confirmed that 5 other people were charged for the $ 722 million raised from the Ponzi program.
Cryptocurrency fraud reached $ 1.36 billion in 2020
Cryptocurrency scams are a serious problem for the cryptocurrency community, coupled with the fact that many countries have already introduced strict regulations and bans against digital currencies.
A report from crypto intelligence firm CipherTrace found that a total of $ 1.36 billion in cryptocurrency thefts were stolen in the first five months of 2020, suggesting that the rest of the year will see an increased wave of cryptocurrency scams that could easily surpass the lost $ 4.5 billion to cryptocurrency scams in 2019.
The reports found that the pandemic played a role in intensifying fraudulent activity in the crypto space, with phishing scams related to COVID-19 leading the dark web.