Milan – A groundbreaking investigation has exposed a fraudulent bankruptcy involving a cryptocurrency exchange, resulting in losses exceeding 66 million euros and impacting over 18,000 clients.
The Financial Police of Milan, under the direction of the Prosecutor’s Office, arrested the two interim administrators of the exchange. The investigation began with suspicious transaction reports and more than 700 complaints filed by clients, uncovering severe management irregularities.
Mismanagement without safeguards
Since its inception, the platform failed to separate company and client funds, neither at the accounting nor operational levels. The Court of Milan declared the judicial liquidation of the group’s companies, with criminal charges including fraudulent bankruptcy, false corporate communications, and breach of fiduciary duty.
International probes and legal challenges
The investigation required navigating the transnational complexities of crypto-assets, with international requests sent to USA, Switzerland, Lithuania, and Ireland. These efforts led to the identification of resources and transactions abroad. Authorities also seized cryptocurrency worth 500,000 euros, stored in USB devices.
A warning for investors
This case highlights the risks of the cryptocurrency market, marked by legal uncertainty and difficulties in recovering stolen funds. It serves as a reminder to investors to rely on regulated platforms.
The suspects’ responsibility will be determined by a final court ruling. We invite you to share your thoughts on this topic in the comment form below.
