Hungarians accused of massive cryptocurrency fraud in Mexico
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Loading... - Miles Fuller
- 20 Aug 2024
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A Hungarian man and his daughter have been accused of orchestrating a massive cryptocurrency fraud in Mexico, causing significant financial damage to a company named SYDYG. According to Mexican investigative authorities, the duo allegedly extorted around HUF 6 billion (approximately EUR 15 million) from SYDYG, threatening to destabilize the company’s cryptocurrency, Ilcoin, and push it into bankruptcy if their demands were not met.
The Hungarian-owned company Ilgamos, which had been selling Ilcoin cryptocurrency bundles since 2015, is at the center of the controversy. According to documents obtained by Blikk from Mexican prosecutors, Ilgamos collected money from customers but failed to deliver all the promised Ilcoin, allegedly due to insufficient funds. The company is accused of making illegitimate claims against SYDYG in Mexico while falsely reassuring customers that everything was fine and spreading rumors about their supposed technological developments related to Ilcoin on social media.
The situation escalated when SYDYG’s CEO filed a complaint in Mexico and engaged a representative, Norbert Goffa, to address the issue in Hungary. Goffa was heard as a witness in January 2021, and by the following year, it became known that the Hungarian owners of Ilgamos, identified as Géza K. and Réka K., were wanted in Mexico. However, despite the issuance of arrest warrants and repeated requests from Mexican authorities, Hungarian police have been criticized for their lack of cooperation and the prolonged investigation.
Géza K. responded to the allegations by filing a defamation lawsuit against SYDYG’s CEO in Hungary. The judge handling the case reached out to Mexican authorities, who confirmed the existence of the arrest warrants and expressed frustration with the Hungarian police’s inaction.
Legal representatives involved in the case, such as Dr. Gusztáv Kertész, have criticized the Hungarian authorities for the slow pace of the investigation, which has dragged on for four years without significant progress. The Budapest police (BRFK) have stated that they cannot provide further details due to the ongoing investigation into suspected embezzlement and other related crimes.
The case highlights ongoing concerns about international cooperation in financial crime investigations and the challenges of addressing cryptocurrency-related fraud across borders.
