The Connecticut U.S. Attorney's Office recently announced that Lyell Champagne Jr., a Missouri resident, was sentenced to three years in federal prison for cryptocurrency fraud and tax crimes. The FBI and IRS investigated the case. According to court documents, the Justice Department explained that between March 2021 and April 2022, Champagne and his co-conspirator Kristian Gupta attempted to steal money from victims' bank accounts by obtaining online credentials and transferring funds to cryptocurrency accounts under their control. The two also tried to recruit insiders from banks, but a covert investigation thwarted their plans.

In addition to this fraud, Champagne submitted fraudulent tax returns for a non-existent company, "Shireberk International," from 2018 to 2021, claiming a refund of $34,449,935. Champagne pleaded guilty to bank fraud and making false claims on June 11th. His accomplice, Gupta, pleaded guilty in April and is scheduled to be sentenced on September 19th.