Evolve Bank Freezes Millions Linked to Crypto Scams

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At Evolve Bank and Trust, authorities discovered and confiscated large sums of money – approximating to millions of dollars – linked to deceptive practices like crypto frauds and pig-butchering schemes. This information came to light through a loss complaint filed in January and subsequently examined by Fintech Business Weekly.

The complaint claims that entities including Parallel Design Limited, Gatcha Pictures Limited, and Bytechip LLC are suspected of collaborating in a complex money laundering operation. According to a US Secret Service declaration, a network of 26 Chinese citizens, residing in California, New York, and China, are under investigation for financing these services through deceitful means. The individuals are alleged to have orchestrated various fraud schemes.

Evolve Bank and Trust, recognized for offering Banking-as-a-Service (BaaS) solutions, supplied services to companies such as Bytechip LLC. It is alleged that Bytechip utilized these services to facilitate fraudulent activities for their clients. To carry out these transactions, Bytechip contracted with entities like Solid and used virtual bank accounts provided by Evolve. Eventually, due to unacceptable banking practices, Evolve frozen the funds linked to Bytechip and other similar entities.

An investigator from Evolve determined that over $15 million worth of virtual transactions passed through their platform. However, Evolve Bank and Trust clarified that they do not handle cryptocurrencies themselves and were in the midst of severing ties with companies such as FTX before filing for bankruptcy. They firmly asserted that they had no role in granting loans or investing in cryptocurrencies.

Chinese Authorities Issue Warning on Crypto Scams 

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2024-04-09 02:32