*at least as far as can be confirmed.
Various media outlets in the cryptocurrency space have decided that Ryan Kennedy (AKA Alex Green), the alleged thief of roughly 3,700 BTC from the coffers of failed exchange Mintpal, is currently in jail along with his accomplice, Chelsea Hopkins. Unfortunately for them, a slight amount of digging reveals a few uncomfortable truths, chief among them the fact that Ryan Kennedy is not in jail.
The whole trouble stems from a statement made in the Syscoin blog where they divulge that Kennedy/Green was arrested. They do not specify when, and apparently the other outlets took this as fact at face value and ran with it. Syscoin, as previously reported by CCN, alleges that Mintpal never returned 750BTC and that a UK judge ordered Green to return them. Presumably, failure to comply is what resulted in the still unconfirmed arrest of Alex Green.
Syscoin has failed to deliver proof of its claims, but this does not immediately invalidate them. To cover their behinds, they wrote in the blog:
We're speaking with our legal team regarding what more specifically we can release as there is much to say but until we've reviewed with our team, I can only say that the litigation continues. We've produced evidence verified by a cryptographic expert; the story the blockchain [sic] tells is not one that aligns with the explanation provided (bug stole the bitcoin) for the loss of the coins by Moolah.
Insider Contradicts Media Reports Inadvertently
On Twitter, the story was sensationalized in typical Twitter fashion. However, after some prodding, one of the sources used by the media, a person who goes by the name Ferdous (who was intimately involved with the exchange) confirmed that the arrest actually took place back in December.
One of the media outlets maintains that they have seen "official documents," but this same outlet has done this in the past without providing the documents. While there is no reason to doubt that if a UK judge orders you to do something and you don't do it, you wind up in jail, good reporting means that you confirm things or report them as they are – and in this case, it's all up in the air, based on multiple levels of hearsay.
The prime skeptic, in this case, is a community member by the name of MrFelt. He has taken up the charge, asking the right questions, and publishing this piece to set the record straight. In it, he makes a very good point – of course, Syscoin wants its investors to believe that the case is progressing tidily in their favor.
Respectfully, Syscoin and Ferdous lack credibility – they believed Moolah the first time when there were obvious signs of trouble (not to mention legal baggage associated with their own initial coin offering – would they really want to create a record of this in court?). Another possibility is that Syscoin and Ferdous collaborated with Moolah to invent a fake lawsuit to exit the chaos from Moolah and Mintpal's collapse. It is notable that Syscoin and Ferdous are adverse parties to one another in the moo bankruptcy and civil matter, yet supposedly have the same attorney (ahem, holy conflict of interest). Remember, Ferdous fundraised a bunch of bitcoins to go after Moolah to so to be able to salvage MintPal. They might even need some cash right now (more motive).
Nothing to See Here
So, the facts in the case are not new, and the whole thing could be a fabrication anyhow. Interesting to note, additionally, is the fact that the legal documents formerly public are now locked behind a password wall. Only hard evidence would settle this matter, and thus far none of the parties involved have been forthcoming with any of that.
CCN is actively investigating this case, and as always, when we know something, you'll know it. (It does appear, however, that our definition of "know" is a bit different than some of our colleagues.) In the meantime, you can refresh yourself on the Mintpal scandal in the following articles.
- SEC Investigation of “Alex Green,” Moopay LTD, and Seven other Cryptocurrency Companies Currently Underway
- United Kingdom Judge Orders Bitcoin Exchange Moolah to Repay Syscoin’s Escrow Fund
- MintPal Shutdown; Moopay Bankruptcy Prompts Bitcoin Foundation’s Brock Pierce to Reach Out
- MintPal’s 3700 Stolen Bitcoin Likely in Hands of Alleged Scammer Alex Green
- Syscoin Injunction Against Moolah Granted by UK Judge
- Syscoin Price Rises After Judge Orders Moolah to Return Bitcoins