Feds Say Crypto Exchange Founder Stole $1M In Client Funds

By Nathan Hale (January 26, 2022, 7:57 PM EST) -- Federal authorities on Wednesday unsealed charges against the founder and former operator and chief executive officer of a major cryptocurrency exchange in Miami, accusing him of a complex scheme to steal customers' funds.

In a 17-count indictment, prosecutors laid out allegations that Paul E. Vernon, 48, exploited his control over Cryptsy, an online exchange where clients could store their cryptocurrency, to steal more than $1 million in customer funds before abruptly moving to China and later destroying company records in an attempt to cover his tracks.

The indictment, which court records show was filed under seal in August 2019, also charges...

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