- Fraudsters defrauded investors of $45 million
- Funds spent on cars and real estate
- 10,000 people suffered as a result of the scam
- The man who participated in the scam will appear in court on May 20
US Department of Justice accuses A 57-year-old man named Brian Lee is involved in the $45 million investment scam CoinDeal. Today, a Nevada resident will appear in federal court in Las Vegas.
The court reports that Lee allegedly colluded with CoinDeal founder Neil Chandran. They also created many scam companies that operated under the guise of “ViRSE” and included several subsidiaries.
They deceived investors and promised incredibly high returns. The perpetrators explained to the victims that these firms were allegedly developing virtual world technologies, including their own cryptocurrency, for use in the metaverse.
Lee is said to have been the formal owner and manager of ViMarket, receiving instructions from Chandran on how to spend the funds received in ViMarket accounts from investors. According to reports, Lee and Chandran misappropriated millions of dollars in investment funds and spent them on expensive cars and real estate.
Chandran was arrested almost a year ago, in June 2022. He was charged for his likely role in the scheme. Lee is charged with conspiracy to commit fraud, mail fraud and involvement in money transactions with criminally obtained property. In general, he was charged with 7 counts.
If found guilty, he faces up to 20 years in prison for each of the counts of fraud, mail fraud and conspiracy. Also up to 10 years in prison for each count of involvement in illegal money transactions.