CoinDeal Charged by US Prosecutors

US authorities have initiated legal action against Bryan Lee, a new suspect in the fraudulent investment scheme known as 'CoinDeal'. The scheme, orchestrated by Neil Chandran, allegedly raised $45 million by selling unregistered securities. While CoinDeal is the name of a legitimate crypto exchange based in St. Vincent and Grenadines, it has no connection to this fraudulent operation.

Earlier this year, the US Securities and Exchange Commission (SEC) charged Chandran and four others, namely Garry Davidson, Michael Glaspie, Amy Mossel, and Linda Knott, for their involvement in the fraudulent scheme. The SEC accused them of selling unregistered securities between 2019 and 2022 through three entities: AEO Publishing Inc, Banner Co-Op, Inc, and BannersGo, LLC.

Recent developments reveal that Bryan Lee will appear in a Las Vegas federal court as part of the prosecution. US prosecutors claim that Lee conspired with Chandran and other individuals to defraud investors through companies controlled by Chandran.

According to the prosecutors, Chandran and his associates operated multiple companies under the name 'CoinDeal' and 'ViRSE'. These companies included Free Vi Lab, Studio Vi Inc., ViDelivery Inc., ViMarket Inc., and Skalex USA Inc.

Prosecutors have stated that Chandran made false claims about developing virtual-world and blockchain technologies, along with their own cryptocurrency, for use in a metaverse. They deceived investors by promising high returns and falsely indicating that the company was on the verge of being acquired by wealthy buyers.

Bryan Lee, identified as the nominee and director of ViMarket, allegedly followed Chandran's instructions on disbursing investor funds held in ViMarket's bank accounts. The Department of Justice (DOJ) further alleges that both Chandran and Lee misappropriated millions of dollars of investor funds, using them to purchase luxury cars and real estate. The fraudulent scheme is believed to have impacted over 10,000 victims.

Lee faces multiple charges, including conspiracy, mail fraud, wire fraud, and engaging in monetary transactions involving criminally derived property. If convicted, he could potentially face up to 110 years in prison. However, it should be noted that Lee has not been found guilty and will make his first court appearance soon.

In a separate announcement, the DOJ revealed that Chandran, arrested in June 2022, faces charges related to the CoinDeal scheme. Another co-conspirator, Michael Glaspie, pleaded guilty in February 2023 and is awaiting sentencing in June.

Additionally, the US Securities and Exchange Commission (SEC) has charged eight individuals in connection with the CoinDeal scheme in January this year.