Current York federal prosecutors charged two males with working a phony bitcoin brokerage provider that duped victims of $5 million.
- As alleged in a felony criticism unsealed Monday, former fugitive Randy Craig Levine and disbarred attorney Philip Reichenthal by no system sold their two excessive-rolling patrons any bitcoin no matter promising to carry out so.
- One victim, an unnamed “purported cryptocurrency escrow firm,” wired Levine $3 million to fund an over-the-counter desk’s bitcoin use, per prosecutors, who stated the 2d victim, a Florida bitcoin investor, wired Levine $2 million.
- Levine allegedly suggested the victims their funds had been moved into an “escrow” provider after which stopped responding to the victims’ questions.
- But Levine’s escrow used to be in actuality Reichenthal’s money-laundering front, prosecutors command. They claim Reichenthal wired millions to Russian, Mexican and Guatemalan bank accounts controlled by Levine aliases.
- Levine and Reichenthal allegedly pocketed the money, giving their victims no refunds or bitcoin.
- The pair face allegations of wire fraud, money laundering and commodities fraud in Current York federal district court docket.
- Levine is at existing waiting for extradition from Austria; he’s been on the traipse from U.S. authorities since 2005. Reichenthal used to be disbarred final October in a Florida court docket.