HALLELUJAH - this one has been on my murder board since 2019- Kristijan Krstic aka Felix Logan♦️INDICTED♦️
Serbian Founder of Digital-Asset Companies Indicted in International Cryptocurrency Scheme - charged in an indictment today for his alleged participation in a coordinated cryptocurrency scam
I mean this is the most respectful way possible Serbian Law Enforcement completely imposing. The Officer with the battering ram is noting but a six foot plus tower of muscle. This is the July 2020 raid-video “I will huff and puff and blow your freaking door Kristijan -you trying to jump off the balcony - say hello to multiple long-guns with lasers pointed on you…” - no really in the video Krstic tried to escape via the balcony. And the Serbian law enforcement having absolutely none of it.
Serbian Federal Law Enforcement (SFLE): knock knock -Krstic: who’s there - SFLE: open the door, or we kick it in… Krstic: Me no speaky Russian or Ukrainian, Hungarian, Romanian, Slovak, Rusyn, Croatian Bosnian, Romani, Albanian, Vlach, Bulgarian, Macedonian, Montenegrin… SFLE: fine step away from the door and don’t you dare jump off the 3rd floor balcony because our team is on the ground and neighboring balconies… Krstic: inaudible sobbing - to be clear I doubt that’s how the July 2020 raid went but in my head that’s how I think it went. In all seriousness you can watch the full video and read the July 2020 article here.
Start Options and Bitcoiin2Gen cryptocurrency scam
Defrauded hundreds of investors out of tens of millions of dollars, via fraudulent ICO (Initial Coin Offerings). This years long scam made these cyber-criminals incredibly wealthy. And yes of course there’s an S.E.C component. But let’s first address the superseding indictment
Serbian Law Enforcement originally arrested Kristijan Krstic in July 2020. This was a joint global investigation. Our FBI working in conjunction with other international law enforcement partners. For example the Prosecutor's Office for Organized Crime. Resulting in the arrest of 11 individuals, who are citizens of Serbia, Montenegro, Australia and the Philippines…in no particular order of importance;
Kristijan Krstic aka Felix Logan, Xenia Faye Atilano Krstic, Marko Pavlovic, Uros Selakovic, Haojia Miao, Nenad Krstic, Antonije Stojiljkovic, Adrija Selakovic, Blazo Radulovic, Nikola Dimitrijevic, Nenad Mladenovic, Milos Mitic
To be clear this was under seal until February 23, 2021 at 7:29PM central time. Notice the redactions in the superseding indictment? Ostensibly there appears to be several (redacted) co-defendants that we do not know the identity of.
For now I’ll take it, when I saw the alert come in on my phone, I may have let out a tiny and jubilant squeal. This particular Organized Cyber-Crime Group has been on my murder board for a long time. Technically it’s on my smallest murder board because I had given up hope that we would ever see the indictment. Yet here we are👇🏻 the superseding indictment (ECF/PACER)
Before we dive into the superseding indictment, you should have a bit of background information. America entered into an mutual legal assistance treaty (MLAT) colloquially known as an “extradition treaty” - “in force” with Serbia in April of 2019. The treaty, which I pulled down from the State Department’s website or simply click on the direct link, found here - or https://tinyurl.com/yabacmvk - in short MLATs are reciprocal agreements and once they are “in force” treaty means each county is now bound by the terms and conditions of the MLAT.
The treaty with Serbia entered into force on April 23, 2019 after the parties exchanged instruments of ratification at Belgrade. The treaty with Kosovo entered into force June 13, 2019 after exchange of instruments of ratification at Pristina 1
Incidentally based on my research file, this scam goes as far back as 2011. Granted the Indictment states the scam commenced in earnest in 2014 but again my research shows circa 2011. 2For now put a pin in that date, I’m pretty sure as the criminal case proceeds, we will find out if my research is correct (spoiler it is, I quadruple checked it)
As explained in the newly unsealed indictment - the defendants marketed their companies, misleading investors. By purporting their companies would provide a suite of cryptocurrency services to include; mining and digital-asset trading services; trading in cryptocurrencies, commodities, stocks, and indices. Moreover, Start Options went even further in their specious marketing materials, claiming to would be investors; “the largest Bitcoin exchange in euro volume and liquidity…consistently rated the best and most secure Bitcoin exchange by independent news media.”
The indictment further alleges that B2G purported to be a cryptocurrency “ecosystem”. Misleading investors that B2G would allow trade “B2G tokens”, as well as other digital and fiat currencies, “on a secure, comprehensive platform.” But none of these companies were registered to sell, trade or buy securities. The platforms were bogus. 3 As you’ll note the SR1 enumerated how the entire “investment enterprise” was on a foundation of lies, fraud and deception.
No really the entire business enterprise founded on a bed of lies. The defendants would create fake aliases, typically female - talk about a cryptocurrency honey pot. When soliciting funds from other investors the Defendants would “play act” like they were “other” fictitious employees of xyz company.
When it comes to their fraudulent “binary options”- the Defendants would fraudulently purport amazing return on investments. Knowing some investors wanted in on the cryptocurrency tidal wave. It appears the Defendant used this kind of market share and desire of investors to get in on the low to ride the wave and then ultimately kick out with a near 80% return on investment. Classic skullduggery by unethical cyber cryptocurrency scammers. The totality of the monies lost in this scam are upwards of seventy plus million dollars, again that’s worldwide and not secular to American investors. But still that’s a lot of purloined funds used to pay for the “luxury lifestyle” of the defendants.
Count one as to the Superseding Indictment - Conspiracy to Commit Wire Fraud. As you know there are three elements Prosectors must prove the following pursuant to 18 U.S.C. §371 -
(1) an agreement between two or more persons;
(2) to commit mail fraud or wire fraud; and
(3) an overt act committed by one of the conspirators in furtherance of the conspiracy.
Notwithstanding, it is sufficient that the “defendant knowingly joined the conspiracy in which wire fraud or mail fraud was a foreseeable act in furtherance of the conspiracy”
The money laundering component
investor funds were then laundered internationally via a Phillippines-based financial account and digital-currency wallet, and then those funds were sent to a U.S.-based promoter of the fraud (the SEC civil case proves this to be factually accurate). Thereafter the promoter would transfer to fund to Krstic. Thus far investigators were able to trace approximately $7 million in investor funds from B2G and Start Options. When investors wanted additional performance information or in some cases to withdraw their investment, Kristic would simply stop responding to any and all communications, and then he absconded with those investors’ funds
On February 1, 2021 in the Eastern District of New York (EDNY) the SEC filed a civil action against the following three individuals; Kristijan Krstic (a/k/a Felix Logan), John DeMarr and Robin Enos
One thing you might know, (especially if you followed me on Twitter) I will always give you as many public documents that I could find. Part of my calculus in providing my readers with original documents is epitomized in the Krstic matters, both criminal and civil. While the superseding indictment provides some details, the reality is the SR1 is pretty bare bones. Noting the SR1 less than thirteen pages, whereas the SEC (civil matter is fifty seven pages long) thus provides significantly more details.
One data point I noticed right off the top in the SEC civil matter is the timeframe is lodged is limited to December 2017 through May 2018, this also means there is direct overlap in the Criminal (dates 2014 thru June 2020) and ongoing SEC Civil Matter. Both Krstic (using a fake alias) and DeMarr marketed their Start Options’ supposed digital asset mining and trading platform. In the furtherance of their scheme, they falsely claimed was “the largest Bitcoin exchange in euro volume and liquidity” and “consistently rated the best and most secure Bitcoin exchange by independent news media.” - none of which was remotely true.
The defendants marketed their fraudulent B2G tokens - by telling investors that the tokens were on the Ethereum blockchain. Meaning the Defendants leverage the Ethereum market intensity (as of Jan 2018, it was estimated that some 35 million unique addresses existed on the Ethereum blockchain) to defraud hundreds of investors. The defendant went as far as to tell investors that their funds were being used for the research and development of a “mineable” coin. Brazenly the Defendants hyped the their B2G tokens were also trading on a “proprietary digital asset trading platform at their launch in early April 2018”
The Defendants created fake white-papers, websites, and other marketing materials, which contained numerous misrepresentations. In the SEC civil complaint they allege; DeMarr misappropriated at least $1.8 million from investors. He used those funds for his personal benefit, such as’ car payments & personal credit card debts. Krstic received more than $9 million of investor funds in fiat currency and digital assets. And then on April 27, 2018 he absconded with the funds. Enos purportedly received $12,000 of the ill-gotten largesse
whispers -I said what I said about the circa 2011 date, because I have an ongoing research file and that’s where the facts lead me
See pages 7 through 29 of the SEC EDNY Civil Case, right there in a Court filing is substantiates my circa 2011 assertion. That’s where my research and facts lead me
Do not get me started on all of my lost research concerning the numerous 2019 to Jan 2021 threads. It’s like rubbing chunks of salt on an open wound. Countless hours away from my family & friends wasted. Thanks to Twitter’s trolls and a seriously deranged stalker who lied to everyone on Twitter about cheating on their spouse.
and with that I do believe you are fully debriefed on the USA v Krstic and SEC v Krstic matters. I have a super busy day at work. So I might be out of pocket but eventually I’ll pop back up. Have a great day and make smart choices.
Wow, worth reading again! Glad they got him!