73 websites were taken offline on 16th January 2015 by the office, including BitcoinHYIP.org and others owned by a company called YouYou Finance. The defendants are accused of securities fraud and intent to commit fraud, as well as larceny charges, according to documents provided to CoinDesk.
The complaint, filed on 26th January 2015, details how the district attorneys office first began looking into websites targeting Bitcoin investors in July 2014.
As part of its investigation into BitcoinHYIP.org, investigators went undercover and deposited 1 BTC with the website in August 2014. The complaint notes that the defendants, prior to the payment, assured investigators that their investments were safe and their returns guaranteed.
Other elements of the report include a blockchain data analysis suggesting that Bitcoins sent to the websites were never returned to their originating addresses.
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