Man Arrested for Alleged Ethereum Theft and Fraud Through Coin Dispute Network

• The operator of a supposed crypto asset recovery service has been apprehended and charged with multiple counts of fraud.
• The business allegedly exploited customers by promising to trace and recover lost crypto assets for a fee.
• Approximately $14,000 in cryptocurrency has been seized and transferred under a court order to a controlled address by the District Attorney’s office.

Michael Lauchlan, alias “Max Handler,” charged with defrauding dozens through a misleading crypto asset recovery scheme.

Michael Lauchlan Faces Criminal Charges in Crypto Recovery Scam

Michael Lauchlan, under the pseudonym “Max Handler,” is now facing serious legal action for allegedly deceiving numerous individuals through his crypto asset recovery operation, Coin Dispute Network (CDN). According to Manhattan District Attorney Alvin L. Bragg, Jr., Lauchlan is accused of manipulating potential clients by fabricating news articles and customer testimonials to build credibility for CDN.

Fraudulent Claims and Deceptive Practices

The investigation indicates that Lauchlan’s scheme involved charging an initial consultation fee, typically paid in Ethereum (ETH), for clients to speak with an alleged recovery analyst. He would then make false assertions about locating the lost assets and provide clients with falsified blockchain tracing reports. Despite charging additional fees for the supposed recovery of assets, none of the 175 interviewed clients successfully recovered their lost cryptocurrency.

District Attorney’s Intervention and Asset Seizure

Manhattan DA’s office has taken significant steps in the investigation, revealing that about $14,000 worth of crypto assets from CDN were transferred to CoinEx, a cryptocurrency exchange. Thanks to a seizure order, these funds have now been moved to an address controlled by the DA’s office, providing a semblance of restitution for the victims involved.

Ongoing Investigation and Public Awareness

DA Bragg has stated that the probe into CDN’s fraudulent activities is ongoing, urging potential victims to come forward. “By manipulating customers with false promises and pocketing a fee, Michael Lauchlan allegedly engaged in a scheme that defrauded dozens of people and stole from at least three New Yorkers,” said Bragg. “If you believe you may have been scammed by Coin Dispute Network, please call us at 212-335-9600.”

Conclusion

This case highlights the vulnerabilities within the crypto asset recovery sector and underscores the importance of due diligence when seeking recovery services. As the investigation continues, it serves as a cautionary tale for crypto investors to be vigilant and skeptical of services that promise too-good-to-be-true results.

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