A trader by the name of Joseph Kim attempted to play upon relative company ignorance. He tried to short bitcoin and cover personal margin calls. This the affair ended in a first of its kind federal prosecution and million-dollar losses. According to federal authorities Consolidated Trading, LLC’s Joseph Kim, emailed, “Until the end, I was perversely trying to fix what I had already done. I can’t believe I did not stop myself when I had the money to give back, and I will live with that for the rest of my life. You have every apology I have to give, I am sorry to betray you all like this.”
Mr. John R. Lausch Jr, on the other hand, the United States Attorney for the Northern District of Illinois in conjunction with the Federal Bureau of Investigation (FBI), insists Mr. Kim “worked as an assistant trader for…a Chicago trading firm that recently formed a cryptocurrency group to engage in cryptocurrency trading…Over a two-month period in the Fall of last year, Kim misappropriated at least $2 million of the firm’s Bitcoin and Litecoin cryptocurrency for his own personal benefit, and he made false statements and representations to the company’s management in order to conceal the theft.”
Facts and Current Developments
U.S. v. Kim, 18-cr-107, states “from September through November 2017, Kim transferred more than $2 million of the trading firm’s Bitcoin and Litecoin to personal accounts to cover his own trading losses, which had been incurred while trading cryptocurrency futures on foreign exchanges.”
Mr. Kim, 24, is being charged with one count of wire fraud punishable by up to 20 years in prison. For Chicago, it’s the first federal criminal prosecution of its kind.
The Firm’s Side
The firm, Consolidated, claims that it Mr. Kim’s doing has resulted in a loss of as much as 600,000 USD but as of right now, the firm was able to recover about 144 bitcoin.
Mr. Kim and his attorney have not been made available for comment.