The final chapter in a shocking financial crime wave may soon unfold in federal court. In July, 2015, the United States government indicted three men for allegedly perpetrating one of the largest information thefts in history: the stealing of confidential account information involving some 83 million JP Morgan Chase customers. Criminals reportedly hacked into the company’s database to retrieve sensitive financial and personal information.

The investigation created anxiety among Bitcoin enthusiasts. One of the indicted individuals, an Israeli citizen named Gery Shalon, reportedly engaged in extensive trading in the innovative cryptocurrency through a Bitcoin exchange he operated over the Internet on an unlicensed basis from the State of Florida.

International Arrests

Recent events in the case resemble a fictional crime movie, rife with intrigue, conflicting media reports, exotic international locales and speculation. A series of recent disclosures to the press suggest the massive hack of the corporate database may represent just one small part of a complex financial scandal. In December, online reports revealed federal agencies investigated nine individuals in connection with the crime. In addition to Gery Shalon, the U.S. government this summer indicted an American, Joshua Samuel Aaron, and an Israeli, Ziv Orenstein.

Israeli police arrested both Gery Shalon and Ziv Orenstein in July, 2015 and the U.S. sought their extradition for several months. CBS News reported the Israeli authorities extradited them to the United States in June, 2016. Mr. Aaron remained an international fugitive. He resided in Russia, but eventually found himself facing possible deportation. Instead of seeking asylum in Russia, he returned to the USA to address the federal indictment. Law enforcement officers arrested him last month.

A Criminal Enterprise

The activities of the hackers reportedly extended into several financial venues, including operating an online casino and an unlicensed Bitcoin exchange. Prosecutors contend the scheme established 75 “shell” businesses to help conceal activities such as hacking banks and laundering money.

The group reportedly made over $100 million in criminal schemes conducted in some 17 different nations. One prosecutor contended the participants utilized hacking as a “business model”.

Manipulating Stocks For Fast Profits

Although the full details of the case will likely remain obscure until court proceedings, media accounts describe a complex theft and money-laundering scheme centered around so-called “pump and dump” penny stock manipulations. The brazen hacking of bank computers allegedly occurred in conjunction with efforts to uncover intimate financial information and email addresses used in stock schemes.

Stock market experts describe “pump and dump” as a conspiracy among a group of investors to purchase large quantities of low-priced stock. Members of the scheme hype particular stocks, sending out emails with exaggerated claims designed to incite buyer interest. When stock prices rise, they cash out (or “dump”) their holdings to reap windfall profits, leaving other investors with painful losses when the bubble eventually bursts. According to federal authorities, some of members of the hacking scheme made $2 million in one pump-and-dump operation alone.

An Ongoing Story

The unfolding case will likely garner more headlines this year. It holds particular interest for Bitcoin consumers. Most supporters of Bitcoin as an investment vehicle do not relish the prospect of damaging news media headlines clouding the image of Bitcoin transactions.

As more revelations surface surrounding this case, financial experts will likely follow the proceedings with interest. Some have already pointed out the fact Bitcoin trades became public demonstrates the ultimately transparent nature of crypto currency ownership.