CFO's Crypto Heist: $5M Stolen, 3 Years Behind Bars

CFO's Crypto Heist: $5M Stolen, 3 Years Behind Bars

written by John Murphy | April 28, 2023

According to recent news about CFO’s Crypto Heist, Cooper Morgenthau misappropriated $5 million from three companies. He lost all of its meme stocks and trading cryptocurrencies.

The special purpose acquisition company (SPAC) ‘s ex-chief financial officer was imprisoned for misusing $5 million. On 27 April press release from the U.S. Department of Justice made a statement.

Key Takeaways:

  • Cooper Morgenthau, ex-CFO of African Gold Acquisition Corporation, got three years in prison for embezzling $5M from three SPACs to trade cryptocurrencies and meme stocks.
  • Morgenthau wired $1.2M from African Gold to his account, leading to false records, and lost all embezzled funds.
  • He raised $4.7M from investors for a new SPAC but used it to cover losses and continue trading.
  • Morgenthau falsified documents to cover up losses.
  • Sentencing sends a message to SPAC promoters on market fraud punishment and highlights Wall Street’s greed seriousness, according to US Attorney Damian Williams.

According to it, the former chief financial officer of African Gold Acquisition Corporation, named Cooper Morgenthau, embezzled over $5 million.

From June 2021 to August 2022, he misuses $5 million from three different SPACs, Strategic Metals Acquisition Corporation I (SMAC I), AGAC, and Strategic Metals Acquisition Corporation I.

Katelyn Dibbert took to Twitter and made an announcement that the Former CFO stole % a million for trading meme stocks and crypto. He was sentenced to 3 years for doing this.

Moreover, according to a complaint from United States SEC, Morgenthau wired $1.2 million from Africa Gold to his account. He did this by utilizing trading cryptocurrency and meme stocks.

Moreover, lost all the funds in doing so. He provides false documents to auditors and accountants at African Gold following the losses before filing with SEC. This leads to material misstatements in the public financial records of the company.

Mr Legend Crypto took to Twitter and made an announcement that Cooper Morgenthau embezzled $5 million from different firms. He almost lost all of its “meme stocks” and traded cryptocurrencies.

At the same time, in SPAC, Morgenthau increases $ 4.7 million from private investors separate from Africa Gold. He raised this money and claimed the initiation of another SPAC using this amount.

Morgenthau uses the freshly raised capital at African Gold to cover his losses and continues further import and export of cryptocurrencies and meme stocks. This is very unfortunate for the investors.

CFO's Crypto Heist
Source: the-sun

There was a time SMAC I was raising money from private investors before its initial public offers. African Gold discovered this withdrawal and fired Morgenthau. It informed the SEC of his malpractice, which happened in August 2022.

A Florida resident, Morgenthau, was found guilty of one count of wire fraud on 3 January. Crypto Trader Pro took to Twitter and made an announcement that Cooper Morgenthau wired $ 1.2 million in funds into his personal accounts. He was punished with 3 years of sentence.

He has an order to forfeit $5.1 million, and in addition to this, he has a sentence of three years of imprisonment. He has to pay further restitution of $5.1 million.

A message was sent to SPAC promoters that any SPAC market fraud would get punishment. This happened during the sentencing of Cooper Morgenthau. Additionally, greed on Wall Street will have serious results. This is all said in the statement released by U.S. Attorney Damian Williams.