US secures extradition of leader of $70 million crypto and binary options fraud

In a significant development, Kristijan Krstic, 48, has been extradited to the United States to face charges over his alleged involvement in sophisticated cryptocurrency and binary options fraud schemes. Krstic was arrested in Georgia and is facing indictments in the Northern District of Texas and Eastern District of New York.

The U.S. Department of Justice (DOJ) emphasizes this extradition as a testament to the collaborative efforts in combating transnational organized crime. Nicole M. Argentieri, Acting Assistant Attorney General, has reaffirmed the DOJ’s dedication to investigating and prosecuting those engaged in cryptocurrency fraud, thereby safeguarding the public.

Over 20 fraudulent crypto and binary options platforms

Krstic’s legal challenges begin in the Northern District of Texas, where a federal grand jury indicted him in March 2020. He stands accused of defrauding global investors through deceitful cryptocurrency and binary options investment platforms. The charges were expanded in July 2020 to include conspiracy to commit wire fraud and money laundering.

According to court documents, the defendants allegedly helped create and market more than 20 fraudulent cryptocurrency and binary options investment platforms, including Start Options, Trinity Mining, Hedger Tech, BTC Mining Factory, Bitcoin Trading World, Dragon Mining, BTC Trader Online, Crypto Trading World, Go Solar Mining, BTC Falcon, Perpetual Energy, Perfect-Options, Options Rider, Option Giants, Banking Options, Aeon Options, Bancde Options, Instant Options, Fast Options, and Elite Options.

U.S. Attorney Leigha Simonton has highlighted the Justice Department’s commitment to pursuing cybercriminals, stressing the importance of interagency cooperation. The indictment lists over 20 fraudulent investment platforms linked to Krstic, who allegedly promised substantial returns on investments in cryptocurrencies.

The FBI plays a crucial role in these investigations, with Assistant Director Luis Quesada and Special Agent in Charge Chad Yarbrough underscoring the agency’s commitment to pursuing international fraudsters. They recognize the severe impact on victims, many of whom lost substantial savings, and express gratitude for international law enforcement collaboration in extraditing Krstic to the U.S.

If convicted of the charges in the Northern District of Texas, Krstic could face a maximum of 20 years in prison for each count of wire fraud and money laundering conspiracy.

New York charging Krstic for Start Options and B2G

Krstic faces further legal action in the Eastern District of New York for a separate cryptocurrency scheme. Allegedly operating under the alias “Felix Logan,” Krstic is accused of soliciting U.S. investors through fraudulent platforms, Start Options and B2G, and misrepresenting their investment services.

The indictment accuses Krstic of inducing investors to purchase securities under false pretenses and subsequently laundering the funds internationally. Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation highlighted Krstic’s exploitation of the cryptocurrency hype to defraud investors.

The charges in New York could also lead to a maximum of 20 years imprisonment. The case reflects the U.S. government’s resolve to work with international partners in bringing alleged cybercriminals to justice.