US man indicted for operating fake cryptocurrency recovery service through CDN

The New York Special Operations Group of the US Homeland Security Investigation Bureau (HSI) stated on August 5th that Las Vegas resident Michael Lauchlan is suspected of operating a false cryptocurrency asset recovery business through Coin Dispute Network (CDN).Lauchlan claimed to provide blockchain analysis and cryptocurrency recovery services, but actually retained customer fees and obtained additional Ethereum through false promises.Investigation shows that more than 175 CDN customers failed to recover any cryptocurrency. User funds of approximately $14,000 were traced to the CoinEx exchange.Lauchlan is currently facing charges of grand larceny and two counts of fraud in Manhattan Criminal Court. This is the first time the Manhattan District Attorney's Office has shut down a cryptocurrency recovery website.