US Govt seeks only $26k in restitution from REcoin and Diamond Reserve Club ICO operator

Maria Nikolova

The government has not received affidavits of loss for many of the cryptocurrency investors, and, as a result, has been unable to identity most investors who have not submitted affidavits to date.

The United States Government is seeking only $26,543 in restitution from Maksim Zaslavskiy, as the government has been unable to determine the identities of many of the investors in the fraudulent schemes operated by him. This becomes clear from documents filed by the government with the New York Eastern District Court on August 14, 2020.

On July 15, 2018, the defendant Maksim Zaslavskiy pleaded guilty pursuant to a plea agreement to Count Two of a four-count Superseding Indictment, charging the defendant with conspiracy to use and employ one or more manipulative and deceptive devices and contrivances in furtherance of a scheme to defraud. The defendant was sentenced on November 18, 2019 to 18 months’ imprisonment and three years’ supervised release. No forfeiture was sought by the government or imposed by the Court. At the time of sentencing, the government, with the defendant’s consent, sought additional time to make a restitution submission to the Court, and since then the Court has granted several requests for adjournment.

In the document submitted at the Court on August 14, 2020, the government estimates the loss to victims, who to date have not been paid back as a result of the Recoin and Diamond fraud scheme to be $75,203.77. This amount consists of payments made by investors into the fraudulent scheme through the Amazon wallet and through cryptocurrency payment processors (Coinpayments and Coinbase).

However, because the government has been unable to determine the identities of many of the individuals who invested through Coinpayments, the government requests that the Court amend the Judgement, entered on November 20, 2019, to order that the defendant pay restitution in the amount of $26,543.49 to the victims readily identifiable by the government.

Read this next

Executive Moves hires Ahmed Negm, a popular market analyst on CNBC, Sky News, Bloomberg’s Asharq

“Ahmed’s expertise and passion for understanding the intricacies of the financial markets will be invaluable as we continue to grow our client base and expand into new jurisdictions.”

Institutional FX

ATFX uses blockchain to help clients verify IBs and vice versa

ATFX said it has been working on the IB verification project for a few months.

Industry News

Research market in dire straits as SEC’s ‘no-action’ letter on MiFID II lapses in June – survey

“Of all the regulatory news that has hit the research market in the last few months, this is the one change that will fundamentally impact what fund managers can access and pay for in future.”

Executive Moves

Wombat appoints ex-abrdn Richard Charnock as UK platform turns to Europe

Launched in 2019, Wombat provides a dedicated mobile investing platform – available on both iOS and Android – offering users both range and choice.

Institutional FX

Broadridge integrates Point Focal’s pre and post-market reports

“Point Focal provides a unique lens on the market which will help add alpha to the trading process and these new insights will rapidly improve performance while mitigating execution risk and simplify trading.”


XCritical integrates with Brokeree Solutions, allowing its clients to launch copy trading 

The forex software provider – XCritical, has integrated Social Trading by Brokeree Solutions into their CRM system.

Industry News

HKEX partners with Saudi exchange for cross listings, ESG, Fintech

“The Kingdom of Saudi Arabia, and the broader Middle Eastern region, are one of the world’s most dynamic and exciting economic and innovation hubs and also home to some of the fastest growing investor groups in the world. Hong Kong and HKEX’s markets offer significant opportunities for international investors and corporates, including unrivalled connectivity to the Mainland Chinese markets through our unique Connect programmes. This agreement signals the beginning of even greater collaboration between our companies and our home markets, and we look forward to exploring many future areas of cooperation.”

Executive Moves

CMC Markets Connect relocates APAC team led by Peter Foster to Singapore

“Singapore is a vibrant city and is now undoubtedly seen as Asia’s leading financial hub. The decision to bolster the CMC Markets Connect team here will help us cement the company’s position as a leading provider of multi asset liquidity and comprehensive trading solutions across the region.”

Retail FX

Italian watchdog red flags Olympus Brokers, UnicoFX and Allfina Group

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.