Disbarred New York Lawyer Pleads Guilty to Bitcoin Fraud Schemes

A disbarred attorney pleaded guilty to conspiracy to commit wire fraud in connection with a scheme to defraud investors who believed they were purchasing bitcoin, the U.S. Attorney’s Office for the Southern District of New York announced Friday.

Philip Reichenthal engaged in schemes with co-defendant and international fugitive Randy Craig Levine to fraudulently induce victims to send millions of dollars to Reichenthal, the announcement said.

Reichenthal falsely represented that he would act an escrow agent for the transactions. But he instead sent a substantial portion of funds to Levine before any Bitcoin was provided to investors, the announcement said.

Reichenthal, ...