With the ongoing bear market in crypto, one would think that most people should lose money. While that is true, something else is also true, the increase in crime on the bear market. In today’s news, the ex-CFO has pleaded guilty in court to embezzling more than $5 million from multiple Special Purpose Acquisition Companies (SPACs) for trading meme stocks and cryptocurrencies.
Going by the name of Cooper Morgenthau, the former CFO pleaded guilty Tuesday to referring fraud charges before US District Judge Paul Engelmayer in federal court in Manhattan
Former chief financial officer allegedly committed crimes
According to authorities, between June 2021 and August 2022, Morgenthau embezzled over $1.2 million from African Gold Acquisition Corp, a blank check company, and hoodwinked the crime by falsifying his bank statements and spending it all in crypto and meme stocks or lost trade.
Subsequently, the SEC said Morgenthau raised a total of $4.7 million from investors in SPACs, aka Strategic Metals Acquisition Corp, to cover its losses but lost most of the funds trading crypto. At his scheduled sentencing on April 25, Morgenthau is expected to face a probable prison sentence of approximately 6 to 7 1/4 years under recommended federal guidelines.
Ex-CFO agreed to settlement
Morgenthau elected to an agreement to forfeit $5.11 million and pay an equal amount in restitution, as well as settle related civil claims brought by the US Securities and Exchange Commission. His background at the African Gold Company seems like illegally embezzling funds was a recurring activity of Morgenthau.
African gold, which was formed to purchase a gold mining company and is based in New York, had raised $414 million in an IPO in February 2021. The SEC said the company finally fired Morgenthau in August last year after discovering he had run away with funds and salespeople refusing to work for the company.
According to African Gold, Morgenthau canceled it at the time after learning about its “inappropriate withdrawals” that were trying to hide them. US Attorney Damian Williams in Manhattan noted in a statement that Morgenthau’s plea of guilty “acknowledges that it violated the trust that it owes to its public and private investors.”
Meanwhile the crypto market still appears to be in a confused state as a small rally at Bitcoin and other Altcoins takes place. So far, Bitcoin is up 1.12% in the last 24 hours and has gained over $100 in price.
source [BTC/USDT] on TradingView.comAs shown in the chart above, there is a chance that we may see a retracement soon to eliminate liquidity in the vector candle. As for other altcoins, they too all seem to be following the same path as bitcoin. At the time of writing, Ethereum is up 3% with a trading price of $1251.
Source: Crypto News Deutsch