BLOCKNEWS GEORGIA

By Nina Kikava - News - 1 month ago

CEO of Coinflux Arrested For Multiple Reasons

According to a report by Mediafax, that was published on December 13, one of Romania’s largest cryptocurrency exchange company’s CEO was arrested, due to fraud, money laundering, and organized crime. The exchange has stopped every action on the market for now.

The company Coinflux was established in 2015 in the city Cluj. It’s an online digital currency trading platform that has a large base of customers and almost 200 million Euros worth of the cryptocurrencies on the market such as Bitcoin, Ethereum, Litecoin, and Ripple.

The reason why Vlad Nistor, the CEO of the company, was arrested was activities that were illegal, including money laundering, organized crime, and all the other fraudulent activities. The request according to which he was arrested, was issued by U.S. prosecutors. Nistor was arrested within the territory of Romania.

The arrest was followed by the freezing of the accounts of the company and of course, Coinflux announced that it is temporarily stopping all the activity on the platform. Due to the process of investigation on this matter, even the company has no access to some areas of the platform.

Earlier, this year the Romanian government issued a document in order to regulate e-money issuing in the country. Anyone who was planning to issue e-money in the country is obliged to have a capital no less than 350,000 Euro.

This is not the first time when the crypto world is facing arrests due to money laundering or fraudulent activities. As BNG reported one week ago, in Japan there are nearly 6,000 cases of suspected money laundering linked to cryptocurrency that was reported to the police. Also, BNG reported earlier this year, that the police sergeant in Santa Barbara, Samy Tarazi, who is the supervisor at REACT Task Force (the group that is fighting cybercrime), stated that the number of detected crimes had grown dramatically.