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According to the Indictment, Paul E. Vernon solicited and caused cryptocurrency investors to trust the safety of Cryptsy, an online cryptocurrency exchange company, for storing and trading their virtual currency. Vernon exercised control over cryptocurrencies deposited on the Cryptsy website. For six months following this disclosure to his employees, Vernon continued to operate Cryptsy, including soliciting new customers, without disclosing to his customers that the website's security had been compromised.
In or around November of , Vernon abruptly moved to China and, shortly thereafter, publicly reported to Cryptsy customers the hack of the Cryptsy wallets and loss of bitcoins and other cryptocurrency. The Indictment further alleges that Vernon attempted to evade his federal income tax obligations for and In each of and , Vernon caused to be filed false and fraudulent U.
Juan Antonio Gonzalez, U. Assistant U. Attorney Brooke Watson is prosecuting the case. Attorney Daren Grove is handling asset forfeiture.
ROBINHOOD CRYPTO NEW YORK
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