The background to cryptocurrency fraud: the story of a former US lawyer
Date: 2024-05-30 Author: Oliver Abernathy Categories: IN WORLD
A year ago, David Kagel was disbarred from the California State Bar. But that didn't stop him. Using his “reputation as an experienced lawyer,” he entered the cryptocurrency world, becoming part of a massive fraud scheme that resulted in losses of $9.5 million.
Building a pyramid
Under the guise of a lawyer, Kagel attracted victims by promising huge profits. He supported the fraudulent scheme with his authority and claimed that his accomplice owned $11 million in bitcoins, ready to compensate for any potential losses.
Fall and Confession
Kagel and his accomplices used the raised investments for their own benefit. However, their actions did not go unnoticed. The lawyer, aged 85, admitted fraud and could be sentenced to five years in prison.
Condemnation and warning
The head of the criminal division of the Department of Justice, Nicole Argentieri, emphasized that the abuse of lawyer status to support fraudulent schemes can lead to serious consequences for victims. In this case, the reputation of legality only covered up criminal intentions, leading to large-scale financial losses for the victims.
