Connect with us
Prague Gaming & TECH Summit 2025 (25-26 March)

Blockchain

Skycoin Files RICO Lawsuit For $2.6 Billion Dollars in Damages Against Crypto Extortionists

Published

on

Singapore, Singapore–(Newsfile Corp. – March 9, 2022) – Skycoin, a Singapore-based tech company involved in developing blockchain and telecommunications hardware and software has filed a lawsuit (Skycoin v. Stephens, 22-cv-00708, U.S. District Court, Northern District of Illinois, Chicago) against multiple defendants, including former contractors and two journalists. The former contractors are being sued for damages for carrying out a fraudulent invoice scam and their involvement in kidnapping Skycoin founder Brandon Smietana and his girlfriend in order to steal crypto assets. The two journalists are being sued for receiving money to publish false and defamatory statements against the company as part of an extortion racket.

On February 8, 2022, Skycoin Global Foundation Singapore filed a federal lawsuit against Bradford Stephens, Harrison Gevirtz f/k/a ‘HaRRo’, Ryan Eagle, Andrew Young, former Eagle Web Assets (EWA) associates Aaron Kunstman and Joel Wayne Cuthriell AKA ‘Caribou’, as well as Morgan Peck, Tristan Greene, Bryan Clark, Catherine Byerly, Steven Leonard, and Josh Ogle of Far Ahead Marketing for actions that occurred between 2018 and 2022.

Smietana was an early developer of Bitcoin and a crypto industry pioneer who participated in writing code for the world’s first cryptocurrency along with Satoshi Nakamoto. Skycoin was founded in 2012 to fix the outstanding issues with Bitcoin and was one of the first corporations involved in developing Web3. Skycoin developed and prototyped Obelisk, a low energy distributed database consensus, to enable zero CO2 and provide an alternative to the legacy blockchain consensus, which involves high overhead, such as the wasteful and energy intensive Proof of Work (PoW) consensus. Skycoin is also active in developing new telecommunication protocols for next generation internet, such as Skycoin’s Skywire virtual cloud and software defined networking (SDN).

During its launch in 2013, Skycoin created and distributed 100 million units of digital property called Skycoin tokens. By January of 2018, the Skycoin token’s total market capitalization surpassed 5 billion US dollars.

Amidst the Wild West conditions that prevailed at the peak of the 2018 crypto currency financial bubble, which emerged due to the completely unregulated nature of this new and emerging market, a slew of hustlers, scammers, and opportunists with questionable morals appeared, attracted by the prospects of earning quick money.

Advertisement

Recognizing Skycoin’s success in 2018, Bradford Stephens, Harrison Gevirtz, and other defendants are said to have devised a series of schemes to defraud, steal, and extort money and assets from Skycoin.

The Claims

In early 2018, Skycoin contracted Stephens and Gevirtz to launch and manage a comprehensive marketing and brand awareness program, while improving their website and performing SEO optimization. They were paid $1 million in Skycoin tokens and Bitcoin for their services. The lawsuit alleges that they then used fraudulent means to extort additional money from Skycoin, which included demanding $100,000 – $300,000 monthly to stop spamming the company’s website in an SEO cyber extortion racket. The defendants later demanded that $30 million in Bitcoin and $1 million in cash be paid to their ‘marketing firm’ to prevent the company’s token from being delisted from top exchanges and blacklisted from the industry.

The company later discovered that Stephens, Gevirtz, and their business partners were former associates of the notorious company Eagle Web Assets (EWA), which had been sued by the US federal government and was under an FTC injunction for deceptive and illegal online marketing practices.

It is further alleged that Stephens and another defendant were involved in kidnapping Smietana and his girlfriend in Shanghai 2018. It is believed that the objective of these criminal acts was to extract passwords, source code, and other information from Smietana’s computer system. The assailants stole about $139,000 in Bitcoin and $220,000 in Skycoin after beating and torturing Smietana in his home for six hours. The assailants were arrested, convicted, and sentenced to prison time. It is also alleged that Stephens and others demanded ransom to release Skycoin computer accounts and engaged in invoice fraud, which included presenting the company with a bill for $50,000 in unaccounted for cash expenses that were allegedly incurred over two days in Las Vegas.

Advertisement

Also listed in the lawsuit is a scheme allegedly hatched by Stephens, Kuntsman, Cuthrial, and others to have Skycoin delisted from Binance, one of the main markets for its Skycoin currency, after the company refused to give in to demands to pay them 50 bitcoins (about $2 million at the time) in extortion money. Skycoin was consequently delisted from Binance, after the crypto exchange received a barrage of false complaints and rumors. Afterwards, Cuthrial congratulated the conspirators with public messages reading “Nice work team” and “PARTY TIME.”

Skycoin Products

According to the company’s website, “Skycoin was created as an answer to the shortcomings of both Bitcoin and Ethereum. Born out of necessity, no other coin was fulfilling Satoshi’s original vision of a fully decentralized digital currency.”

The company develops hardware and software that help both companies and individuals take advantage of blockchain technology. Among their products are Skycoin’s Fiber blockchain platform, an infinitely scalable and highly customizable parallel peer-chain architecture; CX, a feature-rich programming language specialized for the development of blockchain applications; and Skyminer, specialized hardware for running nodes on Skywire network, as well as zero-config hardware and blockchain solutions for corporate networking.

In commenting on his company’s decision to file the lawsuit, Smietana observed:

Advertisement

“This lawsuit and issues surrounding it are very difficult. We didn’t file this lawsuit lightly. The issues here have stretched on for several years now. Many preferred for these issues to remain private, but we understood, at this point, that their actions are causing severe damage to our community and company. We have exhausted all other options with respect to this situation and it is necessary to resolve these problems.”

Contact:
Mike Crown
[email protected]

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/116110

Newsfile is a customer-focused newswire team that delivers press releases and corporate announcements to the global financial community. Approved by all stock exchanges, Newsfile offers broad access to media, analysts, investors and market participants. With agile services, proactive customer care and affordable pricing; Newsfile makes it easy for companies to tell their story to the audiences they need to reach.

Blockchain

LCT Secures VARA In-Principle Approval, Defining Its Role in Dubai’s Crypto Landscape

Published

on

lct-secures-vara-in-principle-approval,-defining-its-role-in-dubai’s-crypto-landscape
Continue Reading

Blockchain

Bybit One-Click Buy Offers a Winning Chance in First-Time Deposits Lucky Draws

Published

on

bybit-one-click-buy-offers-a-winning-chance-in-first-time-deposits-lucky-draws

bybit lucky

Continue Reading

Blockchain

Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin)

Published

on

blocks-&-headlines:-today-in-blockchain-(blackrock,-plume,-sealsq,-hedera,-deutsche-bank,-kucoin)

 

Blockchain technology continues to drive innovation across industries, reshaping finance, infrastructure, and philanthropy. Today’s news roundup explores exciting developments in blockchain ETFs, tokenization funding, quantum-resistant chips, public blockchain initiatives, and impactful social projects. Here’s a deep dive into the latest blockchain headlines:

BlackRock ETF Embraces Blockchain with First Muni Bond Purchase

BlackRock’s blockchain-focused ETF has made its first foray into municipal bonds, signaling increased confidence in integrating blockchain technology with traditional finance. The ETF’s strategic investment demonstrates how blockchain can enhance transparency and efficiency in bond markets.

By tokenizing municipal bonds, BlackRock aims to simplify trading and settlement processes while reducing associated costs. This development underscores the growing role of blockchain in transforming financial instruments and fostering greater market accessibility.

Advertisement

Source: Yahoo Finance

Plume Secures Funding for Tokenization Platform

Blockchain fintech company Plume has raised significant funding to advance its tokenization platform. The company’s innovative approach enables businesses to convert real-world assets into digital tokens, streamlining asset management and unlocking liquidity.

Tokenization is rapidly gaining traction as a game-changer in sectors such as real estate, art, and commodities. Plume’s success reflects a broader trend of investment in blockchain solutions that bridge the gap between traditional assets and decentralized technologies.

Source: Fortune

SEALSQ and Hedera Partner for Quantum-Resistant Blockchain Chips

SEALSQ and Hedera have announced a groundbreaking collaboration to develop quantum-resistant chips designed to secure blockchain infrastructure. These advanced chips will provide robust protection against future quantum computing threats, ensuring the integrity of blockchain networks.

Advertisement

As quantum computing capabilities evolve, safeguarding blockchain ecosystems becomes increasingly critical. This partnership highlights the importance of proactive measures in maintaining the resilience and trustworthiness of decentralized systems.

Source: The Quantum Insider

Deutsche Bank’s Public, Permissioned Blockchain Initiative

Deutsche Bank’s Layer 2 blockchain solution is set to go public and operate as a permissioned network, according to its tech partner. This initiative aims to strike a balance between accessibility and security, leveraging blockchain to streamline financial services and enhance operational efficiency.

The decision to adopt a public, permissioned model reflects a growing trend among enterprises seeking to harness the benefits of decentralization while maintaining control over sensitive data. Deutsche Bank’s approach could serve as a blueprint for other financial institutions exploring blockchain adoption.

Source: CoinDesk

Advertisement

KuCoin’s “Light Up Africa” Initiative Brings Hope to Thousands

Cryptocurrency exchange KuCoin has made a significant impact through its “Light Up Africa” donation ceremony in Ghana, benefiting 36,000 children across the continent. The initiative combines blockchain technology with philanthropy to address energy poverty and support education.

By leveraging blockchain for transparency in charitable contributions, KuCoin sets an example of how the crypto industry can drive meaningful social change. The project demonstrates the potential of blockchain to empower communities and foster sustainable development.

Source: PR Newswire

Industry Implications and Key Takeaways

Today’s developments highlight the transformative potential of blockchain across multiple domains:

  1. Integration with Traditional Finance: BlackRock’s ETF underscores the synergy between blockchain and established financial systems.
  2. Tokenization Trends: Plume’s funding success reflects the growing demand for digital asset solutions.
  3. Quantum-Resistant Technologies: SEALSQ and Hedera’s partnership addresses emerging cybersecurity challenges.
  4. Enterprise Blockchain Adoption: Deutsche Bank’s public, permissioned network showcases the adaptability of blockchain in financial services.
  5. Social Impact: KuCoin’s philanthropic efforts illustrate blockchain’s capacity to drive positive societal outcomes.

The post Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin) appeared first on News, Events, Advertising Options.

Advertisement
Continue Reading
Advertisement
 title=
Advertisement

Latest News

Recent Listings

  • Global Payout, Inc.

    Since the Company’s inception in 2009, Global Payout, Inc. has been a leading provider of compreh...

  • MTrac Tech Corp.

    MTrac Tech Corporation, a Nevada Corporation, is a privately held, wholly owned subsidiary of Glo...

  • Net1

    Net1 is a leading provider of transaction processing services, financial inclusion products ...

  • uBUCK Technologies SEZC

    Based in Georgetown, Cayman Islands, uBUCK Tech is a fintech enterprise that specializes in digit...

  • LiteLink Technologies Inc.

      LiteLink is a major player in developing world-class enterprise platforms that utilize ar...

  • Good Gamer Corp.

      Good Gamer Corp. is a privately-held technology company focusing on gamers and streamers....

  • BitPay

      Founded in 2011, BitPay pioneered blockchain payment processing with the mission of trans...

  • About Net1

      Net1 is a leading provider of transaction processing services, financial inclusion produc...

  • Blockchain Foundry Inc.

    Headquartered in Toronto, Canada, Blockchain Foundry (CSE:BCFN)(FWB:8BF)(OTC:BLFDF) is a global b...

  • Sixgill

    Sixgill provides a full suite of universal data automation and authenticity products and services...

Trending on TBE