Navigation
Suscribe
Menu Search Facebook Twitter
Search Close
Menu ALL SECTIONS
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Digital
Prensa
Radio
TV
X
Newsletter
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers
Business

New Witness Delays Trial over Bitcoin Exchange Tied to JPMorgan Hack

Prosecutors said Coin.mx operated through a front to trick financial institutions into believing it was a memorabilia club while it converted, with no license, millions of dollars into bitcoin

JPMorgan Chase & Co. corporate headquarters in New York
By Reuters Whatsapp Twitter Facebook Share
1 month ago

NEW YORK – The trial of two men was delayed on Monday in a case stemming from a probe into a bitcoin exchange and a data breach at JPMorgan Chase & Co after prosecutors revealed a new witness.

Jury selection was set to begin in Manhattan federal court in the case of Yuri Lebedev, whom authorities call the architect of bitcoin exchange Coin.mx’s platform, and Trevon Gross, a pastor and ex-chairman of a now-defunct credit union.

But U.S. District Judge Alison Nathan delayed jury selection until Tuesday after prosecutors said they had secured a new witness.

The witness, Philip Burgess, was represented by the law firm of one of Gross’ lawyers in an unrelated tax case in which he was sentenced in 2010 to eight months in prison.

Assistant U.S. Attorney Daniel Noble said Burgess, while “reporting another potential fraud” to prosecutors on Wednesday, revealed he had incriminating information stemming from his time as a potential investor in the credit union Gross headed.

But after spending the day discussing how to resolve the conflict of Gross and Burgess sharing the same law firm, Nathan ruled prosecutors could not call their eve-of-trial new witness.

“It is my conclusion that we will proceed tomorrow and the government may not call Mr. Burgess,” she said.

A combination photo shows Trevon Gross (L) in New York on February 1, 2017, and Anthony Murgio (R) in a Pinellas County Sheriff’s Office booking photo that was released on August 4, 2015. Photo: Reuters/File Photos

Gross, 52, and Lebedev, 39, are among nine people who have been charged following an investigation connected to a breach JPMorgan disclosed in 2014 that exposed over 83 million accounts.

While Gross and Lebedev were not accused of hacking, they came under scrutiny in connection with Coin.mx, which authorities said was operated by Florida resident Anthony Murgio and owned by an Israeli behind the JPMorgan breach, Gery Shalon.

Shalon has pleaded not guilty to charges that he orchestrated cyber attacks that resulted in the theft of over 100 million people’s information.

Prosecutors said Coin.mx operated through a front called “Collectables Club” to trick financial institutions into believing it was a memorabilia club while it converted, with no license, millions of dollars into bitcoin.

To further evade scrutiny, in 2014, Murgio, with Lebedev’s help, tried to take over Helping Other People Excel Federal Credit Union of Jackson, New Jersey, which was linked to HOPE Cathedral.

To do so, they and others paid $150,000 in bribes via the church to Gross, its pastor, in exchange for facilitating Murgio’s takeover and arranging for Lebedev and others to be put on the credit union’s board, prosecutors said.

NATE RAYMOND

Comments Whatsapp Twitter Facebook Share
More From The News
World

Strikes to Hit French Guiana as Tensions ...

1 hour ago
World

London Attacker Interested in Jihad but ...

2 hours ago
Business

Facebook's Messenger App to Allow Live L ...

3 hours ago
World

Kushner Agrees to Speak to Senate Panel ...

3 hours ago
Most Popular

Stocks Sink as 'Trump Trade' Flips into ...

By The Associated Press
Business

UNAM and Mexican Universities Prepare to ...

By Dalila Escobar
Mexico

Circus Skills Show Children of Mexico Be ...

By Reuters
Mexico

Number of Corpses Exhumed in Jojutla Ris ...

By Notimex
Mexico

Russian Protest Leader Alexei Navalny Ge ...

By The Associated Press
World