Bitcoin exchange Coin.mx founder extradited to US amid cybercrime charges

Rage Commentary : Gery Shalon and Ziv Orenstein, the two founders of the defunct US Bitcoin exchange Coin.mx, were extradited to the US by the US Federal Prosecutor's Office in Southern New York and will face prosecution in the US court on charges of securities crimes and computer hacking. Last year, Coin.mx launched a series of cyber attacks on a large number of companies, causing US financial institutions such as Wall Street bank JPMorgan Chase to suffer the largest data theft in history. Using Bitcoin for illegal transfers is untenable and will eventually be severely sanctioned.

Translation: Nicole

The two founders of the now-defunct American bitcoin exchange Coin.mx have been extradited from Israel to the United States, prosecutors announced today.

Since Gery Shalon and Ziv Orenstein were arrested last year, the U.S. Attorney's Office in Southern New York announced today that they have been extradited to the United States. Today, they appeared in a Manhattan court and were charged with securities crimes and computer hacking. According to the Wall Street Journal, they denied the charges.

Shalon is the owner of Coin.mx, a Florida-based exchange that has carried out a series of cyberattacks on a large number of companies, including Wall Street bank JPMorgan Chase, resulting in the theft of personal data from tens of millions of users’ accounts. Reports last year indicated that the impact of Coin.mx’s operations had spread across the globe and involved a large number of large companies.

Prosecutors said the two were arrested last July and charged with illegal money transfers by Anthony Murgio and Yuri Lebedev, who Murgio denied the charges.

U.S. prosecutors say Coin.mx was used as a conduit for cybercrime funds.

Preet Bharara

US attorney Preet Bharara said in a statement:

"Sharon and Orenstein will face prosecution in U.S. courts for securities crimes related to their alleged involvement in the massive intrusions into U.S. companies, including the largest data theft in U.S. financial institutions history."

U.S. prosecutors said Coin.mx circumvented money services rules by misusing credit cards to buy bitcoin and controlling a New Jersey credit union to conduct international transactions. The credit union's pastor and former CEO was later indicted for bribery.