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
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.
Defendants
- Kristijan Krstic — age 48 · Batumi, Georgia · extradited
- John DeMarr — age 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 million — Investors worldwide defrauded through fraudulent cryptocurrency and binary options investment platforms
- fraud loss: $7 million — Investor 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.”
“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.”
“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.”
“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.”
“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.”
Investigating agencies
Case details
- Prosecuting office
- Northern District of Texas
- Assets
- BTC, B2G
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.