Cryptocurrency Scammers: Accusation of Michael Lauchlan for Fake Business

Michael Lauchlan Accused of Running a Fake Cryptocurrency Recovery Business

Manhattan District Attorney Alvin Bragg has announced criminal charges against Michael Lauchlan for his involvement in a fraudulent business related to cryptocurrency recovery. Lauchlan operated under the alias Max Handler and allegedly deceived clients through the company Coin Dispute Network (CDN).

Fraud Under the Guise of Coin Dispute Network

Purporting to be the vice president and chief recovery officer at CDN, Lauchlan, also known as Max Handler, used deceptive practices to scam unsuspecting clients. He coerced them into paying Ethereum fees to contact a “recovery analyst,” promising to recover their lost cryptocurrencies.

However, Lauchlan not only failed to fulfill his promises but also misled clients by claiming to know the whereabouts of their funds and offering to recover them for an additional fee. Instead, clients’ money and Ethereum cryptocurrency were taken without providing any actual services.

Charges and Consequences

Michael Lauchlan has been brought before the court on three counts of burglary theft and two counts of fraud. His actions took place from July 2022 to June 2023, during which time CDN purportedly offered services related to blockchain analysis, tracking, and cryptocurrency recovery.

The Manhattan District Attorney’s Office took action to shut down the fraudulent activities of CDN by seizing the company’s website. Lauchlan was arrested in Las Vegas on July 9, 2024, marking a significant step in combating cryptocurrency recovery-related crimes.

Scope of the Fraud and Actions Towards Victims

The prosecutor’s office identified around $14,000 in users’ funds transferred by CDN to CoinEx. Additionally, more than 175 affected individuals who fell victim to Lauchlan’s false promises and his fraudulent network were contacted.

In conclusion, Michael Lauchlan, operating as Max Handler, has been brought to court for his involvement in a fake cryptocurrency recovery business through Coin Dispute Network. His actions had devastating consequences for many unsuspecting clients; however, the prosecution took effective measures to stop the scams and defend the victims’ interests.