Creditors vs Debtor in Crypto Ponzi scheme

Brief

Undertake crypto forensic analysis and investigation regarding the concealment of crypto assets and embezzlement of funds from a bankruptcy estate in [the] matter of several creditors vs an individual and his investment company.

What we did

Our forensic review helped untangle the flow of digital assets at the heart of the debtor’s alleged Ponzi scheme. Leveraging on-chain analytics, we traced deposits and movements of debtor and victim deposits across many different digital assets, mapping each hop and their destination. Address clustering and common-spend analysis helped correlate blockchain evidence to help provide actionable leads for asset recovery.

The hearing took place in June 2025.

Outcomes

The Ruling came from Judge Jeffery Norman.

This Court heard evidence that [the debtor] concealed assets in violation of 18 U.S.C. § 1521 and embezzled funds from the bankruptcy estate in violation of 18 U.S.C. § 153.2 The Court found that the evidence showed that [the debtor] did violate both 18 U.S.C. §§ 152 and 153. The testimony of Richard Peters with the firm of HKA Global, LLC was especially compelling as he provided services regarding the estate’s cryptocurrency assets. Specifically, the sealed documents at ECF No. 126 and the testimony of Mr. Peters, the HKA Global, LLC expert, strongly indicate that [the debtor] embezzled concealed estate funds post-petition.”