Alleged ‘Moolah’ Bitcoin Thief Ryan Kennedy Faces First Fraud Court HearingSeptember 20, 2017 5:19 pm
Ryan Kennedy, the founder of Moolah and former MintPal operator, appeared in court last week to face accusations of fraud and money laundering, Cryptocoinnews.com reported Wednesday.
Kennedy, 30, operated several companies under the alias Alex Green and allegedly stole more than £1 million ($1.33 million) in bitcoin in 2014, the report said.
Green abruptly closed Moolah and MintPal – two popular altcoin exchanges – in October of that year, the report said, citing high operating costs and a lack of funding. However, holes began to quick appear in Green’s story and the ordeal grew suspicious.
Because Moolah had served as one of the primary exchanges for the Dogecoin community, prominent figures like Dogecoin creator Jackson Palmer began looking into Green’s past, the report said.
After some digging, they discovered Green was actually Ryan Kennedy, a longtime cryptocurrency scammer. Green initially denied the accusations, Cryptocoinnews.com reported, but personal associates came forward and confirmed he and Kennedy were the same person.
Then, MintPal employees revealed Kennedy had made off with a portion of the user funds stored on the platform, the report said, including the 750 BTC Syscoin had raised during its initial coin offering (ICO), which Moopay – one of Kennedy’s companies – was holding in escrow. Syscoin took Kennedy to court and successfully obtained an injunction against him from a U.K. judge.
After a three-year investigation, U.K. investigators built a case against Kennedy, which is believed to be the first cryptocurrency-related fraud case to be tried in the country, the report said. Prosecutors expect to introduce evidence from several nations, including the United States and Finland.
As reported by the Bath Chronicle, Kennedy – who was convicted on several counts of rape in 2016 and is currently serving an 11-year sentence – appeared in the Bristol Crown Court via video link and denied the eight charges against him. His next court hearing will take place on Dec. 18, but his trial is not scheduled to begin until September 3, 2018.
– WN.com, Jack Durschlag