Montenegro arrests executive suspected of $21M crypto fraud

Jesse Coghlan5 hours agoMontenegro arrests executive suspected of $21M crypto fraudMontenegrin police arrested FutureNet co-founder Roman Ziemian, alleging he was living under a false identity in the country’s capital city.896 Total views12 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onAuthorities in Montenegro said they have arrested Roman Ziemian, the co-founder of the alleged crypto fraud scheme FutureNet, which is suspected to have stolen around $21 million in an elaborate crypto fraud scheme. 

A specialized police unit found Ziemian was using a false identity and living in the country’s capital Podgorica, the country’s Police Directorate said in an Aug. 19 statement.

An arrest warrant was issued by South Korea and Ziemian’s native Poland, who allege he committed fraud, money laundering, and theft. He faces the possibility of life imprisonment in South Korea, the police said.

The Police Directorate said it seized devices and items it suspects Ziemian used for his alleged crimes.

Ziemian is set to appear before a judge in Podgorica’s High Court to determine his extradition.Source:FutureNet

Ziemian co-founded FutureNet with Stephan Morgenstern in 2018. Its now-defunct website pitched it as a multilevel marketing business with an adjacent crypto token FuturoCoin (FTO), which has since lost nearly all its value, according to CoinGecko.

Poland’s Office of Competition and Consumer Protection (UOKIK) warned in March 2019 that FutureNet could be a pyramid scheme. It said the firm sold “participation packages” ranging from $10 to $10,000, promising profits to investors who persuaded others to buy into the scheme.

In mid-2020, South Korean authorities began investigating FutureNet after 950 people claimed they lost millions investing in FutureNet. 

Related:Australia took down 600 crypto scams, says AI will make it worse

Italian authorities arrested Ziemian in October 2022, reportedly right after winning an organized car race with his trophy still in hand. He was released on house arrest and soon fled the country.

Morgenstern was arrested in Greece that same month and was similarly released on house arrest and escaped to Albania. Albanian authorities later found and arrested him in August 2023.

Albanian Supreme Court records show Morgenstern is set to be extradited to South Korea, where he faces a possible life sentence.

Ziemian’s case parallels that of Terraform Labs co-founder Do Kwon, who is being held in Montenegro and faces similar allegations of crypto-related fraud and extradition to South Korea.

Crypto-Sec:Weird ‘null address’ iVest hack, millions of PCs still vulnerable to ‘Sinkclose’ malware# Ponzi Scheme# Law# Europe# Police# Scams# RegulationAdd reaction