DOJ indicts Cryptsy Exchange founder for stealing $1M in cryptocurrency

The U.S. Department of Justice (DoJ) has indicted Project Investors (also known as Cryptsy) CEO and founder Paul Vernon for stealing $1 million from wallets controlled by the now-defunct cryptocurrency exchange. In a 17-count indictment unsealed in federal court in Miami, the U.S. Justice Department charged Vernon, 48, with tax evasion, wire fraud, money laundering, computer fraud and record breaking in a federal investigation. The DOJ alleges that between May 2013 and May 2015, Vernon stole more than $1 million from exchange-controlled wallets and used his own crypto wallet to transfer funds to his personal bank account . But "during this time," Vernon never disclosed the theft to his client. The DOJ also charged Vernon with filing "false and fraudulent" federal income tax reports, substantially underreporting and underpaying what he owes.