Tuesday, October 4, 2022
HomeCyber Security"Faux crypto millionaire" charged with alleged $1.7M cryptomining rip-off

“Faux crypto millionaire” charged with alleged $1.7M cryptomining rip-off


A self-proclaimed cryptocurrency millionaire has been charged with a number of felonies for his alleged position in a rip-off that presupposed to promote a high-powered cryptomining machine referred to as the “Bitex Blockbuster” that didn’t really exist.

James Wolfgramm (also called Semisi Niu or James Vaka Niu) of Spanish Fork, Utah,  has been charged by a federal grand jury with wire fraud and cash laundering.  The fees are in relation to a rip-off that’s stated to have collected almost US $1.7 million from two victims.

In accordance with the indictment, Wolfgramm introduced himself on-line as a cryptocurrency tycoon who had made his fortune in cryptocurrency.

It’s alleged that Wolfgramm posted photos on social media of pricy sports activities automobiles he claimed to personal, suitcases full of money, and screenshots of cryptocurrency wallets containing thousands and thousands of {dollars}’ value of digital forex.

Nonetheless, the indictment alleges, among the photos are thought to have been copied from the web sites and social media accounts of others.

Moreover, Wolfgramm and his firm Bitex are alleged to have promoted a non-existent cryptomining machine they referred to as the “Bitex Blockbuster”.

In accordance with the Division of Justice, victims have been proven a purported “Bitex Blockbuster” at Bitex’s workplace, which appeared like real-time cryptomining however was in truth exhibiting a pre-recorded video loop.

A few of Wolfgramm’s alleged victims turned to social media to share their tales of how they’d been scammed.

One other of Wolfgrammm’s corporations – Ohana Capital Monetary, Inc. (OCF) – is alleged to have supplied monetary companies to these ineligible for conventional financial institution accounts, with the motto “Banking the Unbankable.”

OCF prospects are stated to have acquired thousands and thousands of {dollars} from purchasers who believed that their cash could be stored on deposit, not understanding that their funds have been being spent by Wolfgramm and OCF on “unrelated enterprise bills.”

Wolfgramm faces two counts of cash laundering and 5 counts of wire fraud.

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