The FBI is investigating a report filed by an unnamed Bitfinex user alleging that funds were stolen from their account, CoinDesk has learned.According to an incident report filed on 14th September, a Cambridge, Massachusetts, resident stated that they lost $1.3m in bitcoin tied to the hack and subsequent $70m theft from Bitfinex.The Cambridge Police told CoinDesk that the matter had been referred to the FBI after an initial investigation.Bitfinex representatives have previously said that they are working with the FBI as part of its investigation into the hack.The incident report – and word that the FBI is looking into the matter – offers a rare detail into the post-hack investigation said to be taking place.However, the status of the investigation and the extent to which the FBI has pursued the lead remains unknown at this time.The resident said that they learned that $1.3m had been stolen from their Bitfinex account.According to the document, the user had $3.4m in total personal holdings.

It was further reported that the loss incurred was reduced to $720,000 when factoring in IOU tokens issued by Bitfinex after the exchange initiated its recovery efforts.The document does contain one other idiosyncrasy.The reporting officer noted that the amount translated to "70,000,000 in bitcoin", which roughly corresponds to the amount, in dollars, lost during the hack.The Bitfinex hack rocked the bitcoin world when it occurred in early August, resulting in the loss of nearly 120,000 bitcoins.bitcoin 200 day moving average chartThe incident impacted bitcoin markets during the month that followed, though prices have since recovered.ethereum silicon valley hboThe text of this report has been updated for clarity.bitcoin rigs pics The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.ethereum background

Virtual Ticket to Prison Investigation of Fraud Scheme Unravels Man’s Illegal Bitcoin Exchange The beginning of the end of an Ohio man’s venture into the murky world of cryptocurrencies can be traced back to the moment investigators linked the 29-year-old to a ticket-fraud scheme nearly 2,000 miles away in California.Daniel Mercede, of Chagrin Falls, was charged last November for using stolen credit card information to buy tickets to concerts and other events from a California-based ticket seller.daftar bitcoin gratisHe would then turn around and sell them through another ticket broker—often for less than he paid—netting himself a tidy illicit profit.bitcoin etf wsjCourt documents show he collected more than $400,000 in proceeds, beginning in 2014, through ticket sales and by stealing the personal information of more than 40 victims and using their identities to apply for more than $1.5 million in loans.

The ticket company in California discovered something was amiss when the victims’ banks and credit card companies sought their money back.The investigation led straight to Mercede, who had the tickets delivered to his home address or to his parents’ house.It appeared to be a straightforward fraud case—until investigators started digging.“A lot of the material that we got out of his apartment led me to believe there was something much, much greater going on here than a simple fraud,” said Detective Sergeant Andy Capwill of the Chagrin Falls Police Department.What he found while sifting through thousands of pages of data was evidence of large money transfers, dozens of checking accounts, and what appeared to be a robust business trading in the digital currency and payment network known as bitcoin.“I realized I was going to need some help here,” said Capwill, who called the FBI.In their joint investigation, Capwill and special agents from the FBI’s Cleveland Field Office discovered Mercede was buying large quantities of bitcoin from legitimate foreign exchanges and then reselling the bitcoin himself at a premium.

The inherent appeal of his business, Cryptocoin Capital Management, was its location in the U.S.—not in Russia or China, where people are leery to send their money—and that it did not require the same lengthy waiting period as the more reputable exchanges.“A lot of the time, people who want bitcoin want it now, so they will go through more peer-to-peer transactions,” said Special Agent Gary Sukowatey, one of the FBI investigators.“He was buying larger quantities and waiting whatever period was necessary to wait, then he would sell it to people that wanted bitcoin right away.” The problem, he said, is these transactions are illegal if you don't have a license.Operating a money transmitting business requires registration through the U.S.Department of the Treasury, which has a bureau—the Financial Crimes Enforcement Network, or FinCEN—dedicated to collecting and analyzing information about financial transactions to combat money laundering, terrorist financing, and other financial crimes.

“A lot of the material that we got out of his apartment led me to believe there was something much, much greater going on here than a simple fraud.”Detective Sergeant Andy Capwill, Chagrin Falls (Ohio) Police Department “You’ve got to do it the right way,” said Special Agent Milan Kosanovich, who specializes in complex financial crimes and investigated the case with Sukowatey and Capwill.“It’s perfectly fine to operate as a money exchanger for bitcoin.However, those exchangers, like other financial institutions in the U.S., have specific rules to follow to ensure compliance with anti-money laundering requirements.”In September 2014, Mercede boasted about his profits to a reporter for an online bitcoin publication.He claimed he averaged returns of 8 to 15 percent per day by buying off Chinese exchanges and then selling locally.“I can get some crazy returns right now,” he was quoted saying.Court records show Mercede wired funds to make daily purchases of $10,000 and $40,000 in bitcoin.

Over six months beginning in August 2014, Mercede illegally converted or transmitted $1.4 million.He was sentenced on March 21 to more than six years in prison.The case represents one of the first convictions for what is believed to be an increasingly frequent crime—operating an unlicensed money transmitting business.The FBI agents stressed that trading in virtual currencies like bitcoin is perfectly legal—with the proper registration, licensing, and record-keeping requirements.“It’s easier for people not to do it and hope they don't get charged with it,” said Sukowatey.“But as we were able to prove in this case, you can be charged criminally for not being registered.”Capwill, who began the investigation, said he didn't know what bitcoin was at the outset.But he appreciated the learning experience and working the joint investigation with the FBI—as well as the Internal Revenue Service and the U.S.Postal Inspection Service—to its conclusion.“It was a lot of information being shared back and forth between the agencies, which was really helpful,” he said.