Manhattan District Attorney Alvin Bragg announced criminal charges against Michael Lauchlan for his involvement in a fraudulent crypto asset recovery operation.
Lauchlan, who operates under the alias Max Handler, allegedly defrauded customers through Coin Dispute Network (CDN) by falsely claiming to recover lost crypto assets.
Lauchlan pretended to be the CDN VP and lead recovery manager. Customers paid Ethereum to speak with a “recovery analyst.”
Lauchlan allegedly deceived customers by falsely claiming to know the location of their missing cryptocurrencies and offering to recover them for an additional fee. Instead, he extracted user fees and Ethereum (ETH) without providing the promised services.
“This complaint alleges a sophisticated approach to an age-old crime,” said Attorney General Bragg. “By manipulating clients with false promises and fees, Michael Lauchlan allegedly engaged in a scheme in which he defrauded dozens of people and stole from at least three New Yorkers.”
The charges against Lauchlan include three counts of grand theft and two counts of conspiracy to defraud.
Cryptocurrency Scam Details
Between July 2022 and June 2023, the CDN claimed to offer services such as blockchain analysis and tracking and recovering lost crypto assets. However, these claims were deceptive, and Lauchlan took advantage of customers’ lack of experience in the cryptocurrency industry to steal their funds.
In June 2023, the Manhattan District Attorney’s Office seized CDN, a significant action against a cryptocurrency recovery scam. Authorities arrested Lachlan in Las Vegas on July 9, 2024.
The Attorney General’s Office identified nearly $14,000 in user funds transferred to CoinEx by the CDN and spoke to more than 175 affected individuals.
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