Fake Crypto Recovery Service Operator Arrested and Facing Charges for Scam
The Department of Homeland Security’s New York task force has arrested and charged Michael Lauchlan for operating a fraudulent cryptocurrency recovery service that defrauded customers out of their ethereum. Lauchlan, who ran Coin Dispute Network (CDN), convinced clients that he could help them recover lost cryptocurrencies but instead kept the fees for himself and even stole additional ethereum. He was apprehended in Las Vegas following an investigation by the HSI New York Special Agent in Charge Ivan J. Arvelo. Lauchlan targeted individuals who lacked experience in the crypto industry and took advantage of their trust, ultimately swindling them out of thousands of dollars in false services and stolen assets. The HSI investigation revealed that CDN deceived customers by offering blockchain analysis and recovery services, accompanied by fake testimonials and news articles on their website. Despite clients paying upfront fees, none were successfully able to recover their lost cryptocurrency. Lauchlan’s arrest was a result of the coordinated efforts of HSI’s Las Vegas Field Office and U.S. Customs and Border Protection, who identified approximately $14,000 in cryptocurrency transferred to Coinex.