TechFlow news, on August 5, the New York task force of U.S. Homeland Security Investigations (HSI) stated that Michael Lauchlan of Las Vegas is suspected of operating a fraudulent cryptocurrency recovery business through Coin Dispute Network (CDN).
Lauchlan claimed to offer blockchain analysis and cryptocurrency recovery services but in reality kept customer fees and obtained additional Ethereum from victims through false promises.
The investigation revealed that none of the more than 175 CDN customers successfully recovered any cryptocurrency. Approximately $14,000 in user funds were traced to the CoinEx exchange.
Lauchlan is currently facing charges of grand larceny and two counts of fraud at Manhattan Criminal Court. This marks the first time the Manhattan District Attorney's Office has shut down a cryptocurrency recovery website.
