$18.4M sanctions and permanent market ban for crypto platform fraud
ezBtc (1081627 B.C. Ltd.) · Cryptocurrency fraud
The case in brief
Visible before detection
Checks that could have surfaced it, on hindsight
Bank credits vs books
Customer account balances in the system would not match actual cryptocurrency holdings
Can mislead when: AA only sees the accounts the company links, so an undisclosed account stays invisible. Cash-heavy businesses and timing differences create false flags.
End-use tracing of funds
Customer funds transferred to gambling sites rather than secure storage
Can mislead when: Kubr sees only the company's own accounts. Once money reaches a third party's bank, Kubr can flag the payee but cannot see the next hop without that party's consent.
Third-party confirmation
Wallet audits would reveal missing customer assets
Can mislead when: Counterparties can collude or ignore requests. A non-response is logged as a gap, never as a pass.
Where Kubr services would have helped
Borrower monitor
Offered in India- C1 Customer account balances in the system would not match actual cryptocurrency holdings
- C6 Customer funds transferred to gambling sites rather than secure storage
Proceeds tracer
Offered in India- C1 Customer account balances in the system would not match actual cryptocurrency holdings
- C6 Customer funds transferred to gambling sites rather than secure storage
Financial diligence
Offered in India- C1 Customer account balances in the system would not match actual cryptocurrency holdings
Model check
Offered in India- C1 Customer account balances in the system would not match actual cryptocurrency holdings
Mapped from the checks each service runs. A hindsight reading of public records, not a promise that the failure would have been found.
Same pattern
A summary of public documents. It reports what the sources say. It is not Kubr's finding and not a statement of guilt.