Manhattan DA seizes fraudulent crypto recovery site CDN

In June 2023, the Manhattan District Attorney's Office announced the disruption and website seizure of a fraudulent cryptocurrency recovery company, Coin Dispute Network (“CDN”), which purported to act as a cryptocurrency tracing and recovery service for victims whose cryptocurrency was stolen.

‍

According to the DA’s office, CDN kept fees paid by victims for tracing and recovery assistance and also extracted additional ETH from customers through false promises and inaccurate blockchain tracing reports. The estimated total value paid by victims to CDN of ETH in this case exceeds $1MM USD.

‍

The crypto recovery scam affected hundreds of victims, who, in many instances, funded CDN via centralized exchange. Blockchain analysis shows CDN moved the alleged victim/customer funds between various cryptocurrency addresses. This week authorities seized CDN’s website and used it to warn potential victims about the site’s seizure.

‍

“Seizure of the domain for the Coin Dispute Network website marks the first domain seizure of a cryptocurrency recovery company by this office,” said Alona Katz, Deputy Bureau Chief, Cybercrime and Identity Theft Bureau, Manhattan District Attorney's Office. “We’re here to help and protect victims. Before the seizure, we identified victims in Manhattan and across the country and the calls to our helpline continue to come in. There are likely hundreds if not thousands of potential victims and we will continue to investigate.”

‍

Successful law enforcement outcomes - prosecutions, seizures and returned victim funds - are a critical component of a safer crypto ecosystem. This case is a great example of the hard work and dedication of those on a mission to stop bad actors and make victims whole.

‍

If you believe you are a victim of CDN, regardless of your location, the Manhattan District Attorney’s Office’s Cybercrime and Identity Theft Helpline is standing by 212-335-9600.

‍