🚨 BREAKING: Wolf Capital co-founder and CEO Travis Ford has been sentenced to 5 years in prison for running a $9.4M crypto Ponzi scheme.Ford defrauded nearly 2,800 investors, promising daily returns of up to 2% while diverting funds for personal use. https://t.co/DvVqD5iaHa ...

The U.S. Department of Justice has sentenced Wolf Capital Crypto Trading CEO Travis Ford to five years in prison for a $9.4 million crypto Ponzi scheme, ordering over $1 million in forfeiture and $170,000 in restitution after he admitted to defrauding about 2,800 investors. https://t.co/xl2nAZAJzb ...

ICYMI:BSCN (@BSCNews):SPANISH AUTHORITIES ARREST “CRYPTOSPAIN” IN $300M PONZI SCHEME- Spain has dismantled one of its largest crypto frauds to date — a €260 million (~ $300M) Ponzi scheme run by a man who called himself “CryptoSpain.”Here’s the story…The Mastermind Behind “Madeira Invest Club” https://t.co/hzZKl0T4K4 ...

COMMENT: The 42-year-old suspect, Álvaro Romillo Castillo, was detained in Madrid as part of Operation PONEI led by the Spanish Civil Guard.BSCN (@BSCNews):SPANISH AUTHORITIES ARREST “CRYPTOSPAIN” IN $300M PONZI SCHEME- Spain has dismantled one of its largest crypto frauds to date — a €260 million (~ $300M) Ponzi scheme run by a man who called himself “CryptoSpain.”Here’s the story…The Mastermind Behind “Madeira Invest Club” https://t.co/hzZKl0T4K4 ...

Fraud Overview - Spanish authorities dismantled a €260 million (~$300 million) Ponzi scheme led by "CryptoSpain" [1] - The scheme, operated through Madeira Invest Club, promised 20% annual returns on crypto, gold, luxury cars, whiskey, and real estate [2] - Funds were allegedly used to purchase digital art for resale, but were actually used to pay earlier investors [2] Investigation and Scope - The investigation, Operation PONEI, was led by Spain's Civil Guard and resulted in the arrest of Álvaro Romillo Castillo [1] - Investigators uncovered shell companies and bank accounts in at least eight countries, including Cyprus and Madeira [2] - Funds were moved through offshore entities and crypto mixing services to conceal their origin [3] - Authorities estimate over 3,000 victims across Spain, Portugal, Italy, Germany, and Latin America were defrauded [3] Financial Impact and Losses - The average loss per investor was €80,000, with some losing over €1 million [4] - Police seized luxury assets, including a Ferrari and a yacht, purchased with stolen funds [4] Legal and Regulatory Actions - Europol assisted in tracing transactions to crypto exchanges in Estonia and Panama [4] - Castillo has been denied bail due to flight risk and faces up to 15 years in prison [4]

🚨UPDATE: SPAIN’S CIVIL GUARD ARRESTS “CRYPTOSPAIN,” HEAD OF MADEIRA INVEST CLUB, FOR A €260M CRYPTO PONZI THAT DUPED 3,000 INVESTORS ...

Spain’s Civil Guard arrested “CryptoSpain,” head of Madeira Invest Club, for running a €260 million crypto-linked Ponzi scheme that lured over 3,000 victims with “guaranteed returns” since 2023. Investigators found no real investments, only new funds used to repay earlier investors. https://t.co/AlGbPC7fi3 ...

Core Viewpoint - HSBC has indicated that it may take years to resolve a lawsuit related to the Bernard Madoff Ponzi scheme, which has significantly impacted the bank's profits, leading to a 14% decline in pre-tax profits for the third quarter of 2023 [1][4]. Financial Impact - HSBC's pre-tax profits fell to $7.3 billion for the three months ending September 30, down from $8.5 billion in the same period last year, primarily due to a $1.1 billion provision for the Madoff lawsuit [4]. - The bank's operating costs increased by 24% to $10 billion, influenced by the Madoff provision and restructuring costs related to layoffs [4]. - Despite these challenges, HSBC reported a 15% rise in net interest income to $8.8 billion and a 12% increase in net fee income to $3.5 billion [6]. Legal Proceedings - HSBC has set aside a $1.1 billion provision to address the lawsuit from investors affected by the Madoff scheme, which is the largest Ponzi scheme in history, involving approximately $65 billion in fraud [2][3]. - The bank's CFO, Pam Kaur, stated that the timeline for a settlement is uncertain, potentially taking months or even years, and emphasized that the $1.1 billion figure is based on careful judgment and legal advice [3]. - HSBC plans to appeal a court decision regarding its Luxembourg arm and may dispute the final amount in future proceedings if necessary [3]. Strategic Focus - HSBC's CEO, Georges Elhedery, highlighted the bank's commitment to becoming a more agile and focused institution, aiming to address customer needs amid changing economic conditions [7].

The Bernie Madoff investment scandal was uncovered in 2008 but it is still reverberating on banks’ balance sheets today. HSBC said Monday that it has set aside $1.1 billion to cover litigation by investors who lost money in the Ponzi scheme. One of the bank’s European businesses was in charge of looking after money and administration for funds that invested with Madoff’s company. One of those funds, Herald Fund, sued it in 2009 after the scandal came to light, saying the bank should repay billions of doll ...

HSBC is booking a provision of $1.1 billion for a lawsuit in Luxembourg related to Bernard Madoff’s multibillion-dollar Ponzi scheme, one of the largest financial frauds in American history https://t.co/MTrTvl7XLc ...