Jose Luis Alonso Melchor, a former compliance officer at the prominent cryptocurrency exchange Crypto.com, has been indicted on serious charges of extortion and money laundering.
The allegations surfaced after Melchor reportedly threatened to release sensitive company information unless he received financial compensation after his dismissal.
According to the charges, Melchor breached an attachment order by unlawfully accessing confidential company data, resulting in multiple legal charges being leveled against him
Gossip and rumors have now painted a picture of a disgruntled ex-employee turning to illicit means to settle scores.
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Crypto.com, known for its strict security measures has acted swiftly upon discovering Melchor’s actions.
The company promptly reported the incident to the relevant authorities and actively cooperated with law enforcement to ensure a thorough investigation.
Jose Luis Alonso Melchor, 33 years old, has been arraigned by magistrate Nadia Vella in a Malta court facing countless charges by magistrate Nadia Vella.
Melchor is currently facing nine charges, including money laundering, extortion in his capacity as a public servant, extorting money by threatening to defame a third party, unauthorized use of his employer’s computer equipment, and the taking, tampering, and disclosing of sensitive data.
The charges came after Melchor allegedly demanded €44,000 (approximately $47,666) from Crypto.com as compensation following his termination.
He reportedly obtained sensitive information from the firm through his role as a compliance officer and threatened to publish it.
A freezing order of €2 million has been imposed on Melchor, and his bail requests were denied due to concerns that he might be a flight risk
Crypto.com, which is registered in Malta as Foris Dax MT Limited, reported Melchor’s actions to the authorities immediately upon discovery and terminated his employment.
The company has since been cooperating fully with law enforcement and has refrained from commenting further as the matter is pending litigation.
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