New York authorities charge Michael Lauchlan

Manhattan District Attorney Alvin Bragg announced that criminal charges have been filed against Michael Lauchlan for his involvement in a fraudulent crypto asset recovery scheme.

Operating under the pseudonym Max Handler, Lauchlan allegedly defrauded customers through a company called Coin Dispute Network (CDN) by claiming to recover lost crypto assets.

Lauchlan posed as the CDN’s vice president and chief recovery officer, with customers paying with Ethereum to speak to a “recovery analyst.”

Lauchlan allegedly deceived customers by claiming to know the location of their lost cryptocurrencies and offering to recover them for an additional fee. Instead, he took users’ fees and Ethereum (ETH) without providing the promised services.

“This complaint alleges a cutting-edge approach to a crime as old as time,” said District Attorney Bragg. “By manipulating customers with false promises and pocketing a fee, Michael Lauchlan allegedly engaged in a scheme that defrauded dozens of individuals and stole from at least three New Yorkers.”

Charges against Lauchlan include three counts of grand theft and two counts of scheme to defraud.

Crypto scam details

Between July 2022 and June 2023, the CDN allegedly offered services such as blockchain analysis, monitoring, and recovery of lost crypto assets. However, these claims were misleading and Lauchlan exploited customers’ lack of experience in the cryptocurrency industry to steal their funds.

“This complaint alleges a cutting-edge approach to a crime as old as time.” – DA Bragg. Today, we announced charges against a man accused of stealing from customers of a fraudulent crypto asset recovery business, Coin Dispute Network. Learn more: https://t.co/2dcIAIv0np

— Alvin Bragg (@ManhattanDA) August 1, 2024

In June 2023, the Manhattan District Attorney’s Office took significant action against crypto recovery scams, seizing the CDN website. Authorities arrested Lauchlan in Las Vegas on July 9, 2024.

The District Attorney’s Office identified approximately $14,000 in user funds transferred to CoinEx via the CDN and interviewed more than 175 individuals affected.