Hungarian group accused in massive cryptocurrency fraud in Mexico

A Hungarian man and his daughter committed a massive cryptocurrency fraud against a company called SYDYG, according to Mexican investigative authorities. An investigation into the case was launched in Hungary four years ago as well.

The Hungarian duo caused about HUF 6 billion (EUR 15 million) worth of damage to the Mexican crypto company SYDYG and are wanted in Mexico, Blikk reports. They extorted a large amount of Ilcoin from the company, threatening to cause chaos to SYDYG’s cryptocurrency, Ilcoin, and force the company into bankruptcy if their demands were not met.

One of the companies involved was Ilgamos, which was Hungarian-owned. According to documents from Mexican prosecutors obtained by Blikk, Ilgamos had been selling Ilcoin cryptocurrency bundles since 2015. They collected the money but did not send out all the Ilcoin to their customers. Mexican investigators believe this was because Ilgamos did not have sufficient Ilcoin funds, leading to their illegitimate claim against SYDYG in Mexico. Additionally, the Hungarian company reassured customers that everything was fine, claiming they had developed Ilcoin-related technologies and spreading this rumour on social media.

Hungarian duo accused in massive cryptocurrency fraud in Mexico

SYDYG’s CEO filed a complaint in Mexico, and in Hungary, his representative, Norbert Goffa, contacted the investigating authority. Goffa was heard as a witness in January 2021. A year later, he learned that the Hungarian owners of Ilgamos, Géza K. and Réka K., were wanted in Mexico. “It is now 2024, and all we know about the investigation is that it is at the BRFK’s Corruption and Economic Crime Department,” the lawyer added.

After the SYDYG CEO made a public statement about the issuance of the arrest warrants and shared the article on social media, Géza K. filed a defamation charge against him in the Pest Central District Court. The judge contacted Mexican authorities to verify the claims, and they confirmed the arrest warrants. They also urged their Hungarian colleagues to cooperate, expressing frustration that Hungarian police, despite knowing about the warrants for almost two years, had not engaged with Mexican authorities.

According to the lawyer, Dr. Gusztáv Kertész, investigators should have contacted the Mexican authorities as soon as the complaint was filed. “Four years of investigation and nothing. A colleague of mine, who had previously acted in the case, complained to the prosecutor’s office about the delay, but achieved nothing,” Kertész said.

The Budapest police (BRFK) stated they could not provide further information on the cryptocurrency case due to the ongoing investigation into suspected embezzlement and other crimes.

Dr. Gusztáv Kertész also noted that the cryptocurrency case is not the only one progressing slowly. “In all cases of fraud and embezzlement, we struggle with the fact that investigators want to take the case to civil court. Of course, we complain to the prosecutor’s office, and they usually order an investigation, but then nothing happens.”

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Featured image: depositphotos.com