A Latvian national has been extradited to the U.S. where he is accused of fraud through several companies offering fake crypto investment opportunities. He is scheduled to appear in federal court in Brooklyn to face multiple charges of wire fraud and securities fraud.
Latvian authorities extradite alleged crypto fraudster to U.S. custody
Ivars Auzins, a citizen of the tiny Baltic nation of Latvia, was extradited to the United States on Friday. The Latvian was turned over to U.S. law enforcement officials on a six-count indictment charging him with wire fraud, securities fraud, and conspiracy to commit wire and securities fraud in connection with the operation of eight businesses purporting to offer, invest, and mine digital assets.
Auzins will be arraigned on the indictment Saturday in federal court in Brooklyn before the Honorable Roanne L. Mann, the U.S. Department of Justice said in a press release. The indictment was announced by Breon Peace, U.S. Attorney for the Eastern District of New York, and Michael J. Driscoll, Deputy Director of the FBI’s New York Field Office.
The Auzins carried out an audacious scheme to fleece investors by pouring millions of dollars into illicit cryptocurrencies. The Agency will continue to vigorously investigate and prosecute those who lie and steal from investors, including those operating from abroad, like the defendant.
According to the indictment, the Latvians allegedly ran several companies called “Auzins Entities” that advertised through email campaigns, social media, and websites dedicated to cryptocurrencies. They offered valuable investment opportunities and solicited investments before suddenly disappearing.
Two of these companies, Denaro and Bitroad, raised funds through initial coin offerings (ICOs): Impressio Estate, Bori Investments (Bankroi), Changepro, the Innovamine offered investments in mining many coins, including Bitcoin (BTC) and Ether (ETH). offered investments in mining.
Auzins and their co-conspirators allegedly enticed investors to put money into their projects through a series of material misrepresentations and omissions about the products and services offered, the benefits investors would receive by investing in Auzins Entities, and the individuals running them. allegedly enticed investors to put their money into their projects.
Between approximately November 2017 and July 2019, individuals in the United States and other jurisdictions transferred at least $7 million in digital assets to Auzins’ businesses. Shortly after receiving these investments, these entities disappeared without providing the promised services, the DOJ noted.
The DOJ’s International Bureau worked with Latvian law enforcement to secure the arrest and extradition of Ivars Auzins to the United States, and the U.S. Marshals Service executed the extradition, the announcement details. The U.S. Securities and Exchange Commission’s New York Regional Office assisted in the investigation.
Auzins’ transfer to the United States followed the recent extradition of two Russian citizens accused by U.S. authorities of crypto-related crimes. Last week, the Netherlands extradited 29-year-old Denis Dubnikov, who is accused of laundering the proceeds of ransomware attacks against U.S. individuals and organizations, including hospitals and healthcare providers. Earlier this month, Greece extradited 42-year-old Alexander Vinnik, the alleged operator of BTC-e. He allegedly laundered at least $4 billion through the now-defunct digital asset exchange.
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