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Cryptocurrency

Wolcott Police Arrest NY Man for $60,000 Cryptocurrency Scam

2024-12-10

Last week, authorities in Wolcott, CT, successfully arrested a 28-year-old man from Flushing, New York. Xiallong Wang was apprehended during a sting operation on charges including criminal attempt at second-degree larceny, first-degree telephone fraud, and criminal impersonation. According to Wolcott police, Wang is part of a scam that operates through a fake BingX website, claiming to transfer cash into cryptocurrency for purchasing gold. A male victim was lured into an online relationship via random text message by a female. The victim was instructed to invest in gold using the fraudulent BingX account and suffered a loss of approximately $60,000.00.

Investigation and Sting Operation

Wolcott Police Det. Robert Virgulto initiated an investigation after the victim reported the loss to the department. A sting operation was set up to have the suspect come to the victim's residence in Wolcott to collect more money. When he arrived, he was promptly placed under arrest. This operation showcases the determination of the local police force in combating such criminal activities.

Details of the Scam

The fake BingX website used in the scam is a sophisticated tool designed to deceive unsuspecting victims. It presents a false sense of security, making it difficult for people to realize that they are being targeted. The enticement through an online relationship added an extra layer of deception, making the victim more vulnerable. The fact that the victim lost a significant amount of money highlights the seriousness of this type of crime and the need for increased awareness and vigilance.

Immigration Status and Legal Proceedings

After Wang informed police that he is a Chinese immigrant, the U.S. Department of Homeland Security was notified of his arrest. It was discovered that Wang was in the U.S. on an expired student visa. This aspect of the case raises questions about the enforcement of immigration laws and the role of law enforcement in dealing with criminal activities involving non-citizens. Wang is currently being held in lieu of bail of $150,000 and is scheduled to appear in Waterbury Superior Court on Jan. 8. This legal process will determine the outcome of the case and send a message to potential criminals that such actions will not be tolerated.Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.To request removal of your name from an arrest report, submit these required items to arrestreports@patch.com.

Riot Platforms, a prominent crypto mining company, witnessed a significant event on Monday. Its stock fell by 14% following Bitcoin's retreat from the $100,000 mark and the announcement of a $500M convertible note offering. This move aimed to expand the company's Bitcoin holdings.

Details of the Convertible Note Offering

The offering was initially set at $500M but was later upsized to $525M. It involved 0.75% convertible senior notes due in 2030, with net proceeds expected to be around $511.5M. This capital raise is scheduled to close on Wednesday. Riot plans to use these funds primarily to purchase additional Bitcoin for its treasury.

As of November's end, Riot held 11,425 Bitcoin, making it the third-largest publicly traded corporate Bitcoin holder. The company's monthly report showed it mined 495 Bitcoin in November, a slight 2% decrease from October. Initial purchasers of the notes will have a three-day window to acquire up to an additional $75 million worth of the securities.

The notes mature on January 15, 2030, and can be converted to equity under specific conditions. Starting January 20, 2028, Riot has the option to redeem some or all of the notes for cash if at least $50 million remains outstanding in the case of a partial redemption. At maturity, noteholders can choose to convert their holdings into Riot's common stock or a combination of cash and shares.

Impact on Stock Performance

The announcement triggered a sharp selloff in Riot's shares. On Tuesday, the stock closed at $10.92, marking a 2.63% decline for the day. This followed Monday's steeper drop of 14%, significantly underperforming compared to the S&P 500's modest 0.6% decline. The company's stock performance reflects the volatile nature of crypto-mining investments, which often move in tandem with Bitcoin prices.

Riot's Vice President of Research, Pierre Rochard, highlighted the company's substantial mining operation with a hashrate of 25 EH/s as a key competitive advantage. This infrastructure allows Riot to bridge fixed-income investments with Bitcoin market opportunities.

Comparison with Competitors

This financing approach mirrors similar strategies employed by other crypto mining companies. Marathon Digital, one of Riot's main competitors, recently announced its own plans to raise $700 million through a similar private offering of convertible notes. The broader crypto-related equities market also experienced pressure, with companies like Coinbase, Marathon Digital, and CleanSpark seeing declines. This market response suggests that investors may be cautious about large capital raises aimed at Bitcoin acquisition as the cryptocurrency trades off its recent highs.

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