The team behind the Syscoin altcoin says that alleged MintPal scammer Ryan Kennedy (a.k.a. Alex Green) has been arrested in the U.K., along with an alleged accomplice Chelsea Hopkins.
Kennedy was the head of Moolah, supposedly another cryptocurrency exchange operated under the entity Moopay Ltd. Last July, it took over altcoin exchange MintPal. During the transition process however, Kennedy claimed Moolah was insolvent and shut it down. He allegedly took with him cryptocurrency worth as much as $1.4 million.
MintPal has taken legal action to recover the funds. In addition, the team behind Syscoin won an injunction against Moopay for 750 BTC (now worth $172,500) it had reportedly raised through a crowdsale of its coin.
In a periodic update on its blog, Syscoin reports the arrest among other developments:
“Undoubtedly people are wondering what is going on with the legal battle regarding the 750btc stolen from the Syscoin Escrow fund, Mintpal / Moolah / Ryan Kennedy / Alex Green / etc. We are permitted to disclose that both Ryan Kennedy and Chelsea Hopkins were arrested by UK authorities. We’re working with UK authorities, UK courts, Interpol and the legal bodies to resolve this properly and make sure any wrong doing is met with the full force of UK Justice. We’re also ensuring any accomplices who were complicit in this crime are being held accountable. There are no free rides.
We’re speaking with our legal team regarding what more specifically we can release as there is much to say but until we’ve reviewed with our team, I can only say that the litigation continues. We’ve produced evidence verified by a cryptographic expert; the story the blockchain tells is not one that aligns with the explanation provided (bug stole the bitcoin) for the loss of the coins by Moolah.”
DC Magnates has not been able to verify the reports yet.