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Former Crypto.com Compliance Officer Charged with Money Laundering, Extortion
A former compliance officer at Crypto.com – registered in Malta as Foris Dax MT limited – has been charged with extortion and money laundering after allegedly threatening to release sensitive information while demanding compensation from the company.
Jose Luis Alonso Melchor, 33, was arraigned by Magistrate Nadia Vella in a Maltese court on Thursday following his arrest and dismissal from the Singapore-based cryptocurrency exchange.
According to Today, Melchor was fired after Crypto.com discovered he violated a seizure order. Melchor then allegedly obtained sensitive information from the company through his role as compliance officer and threatened to publish it.
He reportedly told his employer that he wanted €44,000 ($47,666) in compensation for the loss of his job.
Melchor faces nine counts, including money laundering, extortion in his capacity as a public official, extortion by threatening to defame a third party, unauthorized use of his employer’s computer equipment and taking, falsifying and disclosing sensitive data.
A €2 million ($2.2 million) freezing order was upheld against Melchor and his bail applications were rejected because the magistrate deemed him a flight risk.
Crypto.com told Protos: “The employee in question was reported to authorities immediately after his actions were discovered, and his employment was terminated.
“We continue to cooperate fully with law enforcement and have no further comment as the matter is pending trial.”
Learn more: Scoop: EU officials suspect Binance of falsifying accounts in Ireland and Malta
It is unclear what exactly Melchor’s seizure order relates to, but it may involve a judge seizing a defendant’s property to ensure that any potential damages can be paid in full.
Crypto.com, under its registration in Malta, was fined 2.85 million euros ($3.1 million)) in March this year by the Dutch Central Bank. Crypto.com had failed to register in the country for two years, violating money laundering and terrorist financing laws.
The exchange was also do to delist USDT pairs in accordance with the regulations of the Ontario Securities Commission of Canada in January 2023.
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