This week, CoinFire reported that the US Securities and Exchange Commission (SEC), the Internal Revenue Service, FinCEN, Department of Homeland Security, and other government agencies have officially launched multiple investigations into Cryptsy International LTD, a Belize-based bitcoin exchange headquartered in the US and Canada.
Cryptsy under fire
Cryptsy allegedly engaged in fraudulent operations with GAW Miners, a defunct exchange founded and operated by Josh Garza, the creator of a multi-million dollar cryptocurrency investment scam PayCoin. Government agencies and law enforcements including the SEC have filed complaints for inappropriately gained licenses, market manipulation, selling unlicensed securities, money laundering, and many other financial violations, according to the publication.
Furthermore, the purported documents filed by FinCEN and obtained by CoinFire demonstrate a clear and close connection between Cryptsy staff and the Garza brothers of PayCoin. The report alleged that one staff member of Cryptsy allowed several fraudulent transactions for PayCoin and the Garza brothers.
Another document specifically portrays an attempt to disguise funds and payments transacted by Josh Garza on the Cryptsy platform. According to the report provided by Coin Fire, Cryptsy was aware of Garza and GAW Miners’ movements, and helped the PayCoin team to make