A US grand jury has indicted the founder of blockchain startup Amalgam Capital Ventures over allegations he defrauded investors out of over $1 million with a fake blockchain.

Jeremy Jordan-Jones was arrested and indicted on May 21 and charged with wire fraud, securities fraud, making false statements to a bank, and aggravated identity theft, the Department of Justice said on May 21.  

Manhattan US Attorney Jay Clayton claimed Jordan-Jones “touted his company as a groundbreaking blockchain startup,” but alleged that, in reality, the “company was a sham, and investors’ funds were siphoned off to bankroll his lavish lifestyle.”

FBI Assistant Director Christopher Raia alleged that Jordan-Jones defrauded investors of more than 1 million dollars through “misrepresentations of his purported company’s capabilities, partnerships, and investment intentions.”

Raia claimed the Amalgam founder’s “blatant lies” funded his personal lifestyle at the expense of unknowing victims.

An excerpt from the indictment of Jeremy Jordan-Jones. Source: US Department of Justice

According to an indictment filed in a Manhattan federal court, from January 2021 to November 2022, Jordan-Jones deceived investors and financial institutions using fabricated documents, fake sports partnerships, and misleading claims, ultimately misappropriating over $1 million for personal use.

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Amalgam claimed to offer point-of-sale systems and blockchain-based payment and security solutions, the filing states.

The indictment alleged the firm had “no operable products, few, if any, customers, and zero legitimate business partnerships.”

The filing alleged that instead of channeling the funds into tech development and crypto exchange listings as promised, Jordan-Jones spent the money on luxury vehicles, high-end vacations, clothing and fancy restaurants in Miami. 

Charges carry decades in prison

Jordan-Jones was also accused of submitting a fake bank statement claiming Amalgam held over $18 million in order to secure a company credit card, but prosecutors claimed there were no funds in the bank account and it had been closed in late 2021. 

Wire fraud and security fraud carry potential penalties of up to 20 years in prison per count, while making false statements to a bank carries up to 30 years.

Jordan-Jones was also charged with one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.

The government is seeking forfeiture of any property or money traceable to the fraud, including substitute assets if the original funds are unavailable.

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Pakistan’s Ministry of Finance has reportedly endorsed the creation of a dedicated body to regulate blockchain-based financial infrastructure in the country.

The Pakistan Digital Assets Authority (PDAA) will serve as a regulatory body to oversee licensing, regulate exchanges, custodians, wallets, tokenized platforms, stablecoins and decentralized finance applications, according to a May 21 report from the state-owned broadcaster, PTV.

Muhammad Aurangzeb, federal minister for finance and revenue, told the broadcaster, “Pakistan must regulate not just to catch up, but to lead” in the industry.

“With the PDAA, we are creating a future-ready framework that protects consumers, invites global investment, and puts Pakistan at the forefront of financial innovation,” he said.

Muhammad Aurangzeb, Pakistan’s Federal Minister for Finance and Revenue. Source: Pakistan Ministry of Finance

The PDAA will also be tasked with tokenizing national assets and government debt, facilitating monetization of Pakistan’s surplus electricity through regulated Bitcoin mining, and helping startups build blockchain-based solutions at scale.

The new regulatory body was part of a recommendation from the Pak­istan advisory body, the Cryptocurrency Cou­ncil, which was launched on March 14 and has former Binance CEO Changpeng Zhao as an adviser.

“This is not just about crypto — it’s about rewriting our financial future, expanding access, and creating new export channels through tokenization, digital finance and Web3 innovation,” said Bilal Bin Saqib, CEO of Pakistan’s Crypto Council.

Pakistan’s Federal Investigation Agency previously proposed a regulatory framework for digital assets designed to address terrorism financing, money laundering provisions, and Know Your Customer concerns, according to am April 10 report from local newspaper, The Express Tribune.

Pakistan crypto market rises despite early skepticism  

In May 2023, former Minister of State for Finance and Revenue Aisha Ghaus Pasha said that Pakistan would never legalize cryptocurrencies due to the potential for digital assets to circumvent regulations created by the Financial Action Task Force, the supranational organization that polices finance for money laundering. 

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However, the following year, Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, coming in ninth, mainly due to strong retail adoption and transactions at centralized services.

Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, coming in 9th. Source: Chainalysis

Meanwhile, the online data platform Statista shows Pakistan’s crypto market is “experiencing rapid growth” and estimates the number of crypto users is expected to amount to over 27 million by 2025, out of a population of 247 million.

At the same time, revenue in the Pakistan crypto market is projected to reach $1.6 billion in 2025. The United States still leads the pack, with its crypto market generated an estimated revenue of over $9.4 billion, according to Statista data. 

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Tech giant Microsoft says it has taken legal action against the information-stealing malware Lumma Stealer and has blocked thousands of websites related to the software.

Microsoft said in a May 21 blog post that a federal court in Georgia allowed the firm’s digital crimes unit to take down, block or suspend nearly 2,300 websites critical to Lumma’s operations, and it has collaborated with local and international law enforcement agencies to dismantle the project’s infrastructure.

The company said the US Department of Justice seized Lumma’s central command structure and disrupted marketplaces where the tool was sold to other cybercriminals. 

Microsoft says that Lumma has been sold via underground forums since 2022 and that it has undergone multiple upgrades since its launch.

Domains seized by Microsoft. Source: Microsoft Blog

Europol’s European Cybercrime Center and Japan’s Cybercrime Control Center also facilitated the suspension of locally based Lumma infrastructure.

Lumma is a malware tool that allows malicious actors to steal everything from passwords, credit card information, bank account details, and crypto wallet information.

Between March 16 and May 16, Microsoft said it identified over 394,000 Windows computers infected by the Lumma malware and worked with law enforcement agencies and cybersecurity firms to sever communications between the tool and the infected devices.

Malicious activity on the rise

Crypto drainers are software designed to steal the contents of crypto wallets and are common on phishing sites, malicious extensions, fake airdrops and more.

Earlier this week, Chinese printer manufacturer Procolored had reportedly distributed Bitcoin-stealing malware alongside its official drivers, resulting in the loss of around $953,000 worth of crypto.

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Last month, an AMLBot report said that crypto drainers are now being sold as a SaaS product, allowing unsophisticated bad actors to rent the service for as little as $100.

A Feb. 7 report from blockchain analytics firm Chainalysis said that almost $51 billion worth of crypto was lost in 2024 due to fraudulent activity and that professional crime networks, fraud cartels, nation-state-sponsored hackers and AI-powered scams have taken center stage.

The FBI’s cyber arm reported that Americans lost around $9.3 billion in 2024 through crypto scams and frauds. The most vulnerable age group was above the age of 60.

Meanwhile, North Korean hackers have stolen nearly $3 billion worth of cryptocurrencies between 2017 and 2023, which crypto firm Paradigm said have become more sophisticated over the years.

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