TexasBitcoin

Leader of $70M Cryptocurrency and Binary Options Fraud Schemes Extradited to the U.S.

Nov 3, 2023 · Sourced to the U.S. Department of Justice

This case reached the sentenced stage in the Department of Justice's public record. Everything below reflects only what the government itself announced, and links to the original release.

A Serbian man has been extradited to the United States, where he faces charges in two separate federal indictments in the Northern District of Texas and Eastern District of New York for his alleged participation in coordinated cryptocurrency and binary options schemes.

Announced

Nov 3, 2023

Status

Sentenced

Defendants

  • Kristijan Krsticage 48 · Batumi, Georgia · extradited
  • John DeMarrage 55 · Santa Ana, California · sentenced

Charges

  • Conspiracy to commit wire fraud

    Max: 20 years in prisonKristijan Krstic· indicted

  • Conspiracy to commit money laundering

    Max: 20 years in prisonKristijan Krstic· indicted

  • Conspiracy to commit securities fraud

    Max: 20 years in prisonKristijan Krstic· indicted

  • Securities fraud

    Max: 20 years in prisonKristijan Krstic· indicted

  • Conspiracy to commit wire fraud

    Max: 20 years in prisonKristijan Krstic· indicted

  • Conspiracy to commit money laundering

    Max: 20 years in prisonKristijan Krstic· indicted

  • Role in cryptocurrency and binary options fraud scheme (promoter)

    John DeMarr· sentenced to five years in prison

Financial actions

  • fraud loss: $70 millionInvestors worldwide defrauded through fraudulent cryptocurrency and binary options investment platforms
  • fraud loss: $7 millionInvestor funds stolen from Start Options and B2G online investment platforms

From the announcement

This extradition is the result of continued coordination between the Justice Department and our Georgian law enforcement partners in the fight against transnational organized crime. We are committed to protecting the people of this nation by investigating and prosecuting individuals involved in cryptocurrency fraud.
Nicole M. Argentieri, Acting Assistant Attorney General, Justice Department's Criminal Division
The work on this case exemplifies the whole of the Justice Department to bring cyber-criminals – including those who use cryptocurrency and other purported cyber investment platforms to victimize the citizens of the United States – to justice. The U.S. Attorney's Office for the Northern District of Texas will work hand-in-hand with our law enforcement partners to ensure that cyber-criminals are held accountable regardless of their location.
Leigha Simonton, U.S. Attorney, Northern District of Texas
The FBI remains committed to pursuing subjects across international boundaries who are increasingly utilizing sophisticated virtual asset schemes to defraud investors. Victims were told their investment in Start Options and B2G would return significant wealth, but many were defrauded and harmed as a result. The FBI thanks our national and international partners for their efforts throughout the investigation to help bring justice for the victims.
Luis Quesada, Assistant Director, FBI's Criminal Investigative Division
This extradition occurred because of international cooperation and the FBI's persistence to hold this individual accountable for defrauding thousands of innocent victims. Some victims lost their entire savings to this scheme and have not been able to financially recover. We would like to thank our international partners for assisting us with the arrest and extradition of Mr. Krstic. He will now finally face charges for his actions in the United States.
Chad Yarbrough, Special Agent in Charge, FBI Dallas Field Office
Kristijan Krstic used the hype and mystery of cryptocurrency to separate unwitting investors from their money. Krstic founded two online investment platforms which allowed him to steal $7 million in investor funds before closing up shop. Fleeing the country did not stop IRS-CI and our law enforcement partners from continuing our pursuit of justice, and today's extraction demonstrates that no criminal is out of our reach.
Tyler Hatcher, Special Agent in Charge, IRS Criminal Investigation (IRS-CI) Los Angeles Field Office

Investigating agencies

United States Marshals ServiceFederal Bureau of InvestigationFederal Bureau of InvestigationFederal Bureau of InvestigationIRS Criminal InvestigationU.S. Attorney's Office for the Northern District of TexasU.S. Attorney's Office for the Eastern District of New YorkJustice Department Criminal DivisionJustice Department's Office of International AffairsProsecution Service of GeorgiaMinistry of Justice of GeorgiaMinistry of Interior of GeorgiaRepublika Srpska PoliceGeorgian authorities

Case details

Prosecuting office
Northern District of Texas
Assets
BTC, B2G
Binary Options FraudCo-Conspirator AccountabilityCryptocurrency FraudInternational Cooperation And ExtraditionMoney LaunderingSecurities FraudTransnational Organized CrimeUse Of Aliases And DeceptionVictim Harm

Primary source

Every fact above is drawn from the Department of Justice's own announcement — a public-domain government record.

Read the original DOJ release →

This is a research and reference page compiled from public DOJ announcements, not legal advice. Details reflect the government's statements as of its release date and may not capture later developments such as appeals, dismissals, or overturned convictions. Defendants are presumed innocent unless and until proven guilty.