Blab Crypto
Two Men Arrested in New Hartford Over Alleged Cryptocurrency Investment Scam
On Thursday, two men were hauled into custody in the quiet town of New Hartford, New York, as federal and state agents closed in on a sophisticated cryptocurrency fraud ring that had lured a local business owner into a high‑stakes scam. The arrests were the culmination of an undercover operation that began on June 4 and exposed a scheme in which the victim was persuaded through online chatter and fake investment platforms to transfer large sums of money, only to be pressed for additional funds under the pretense of crypto‑investment growth.
Investigators say the victim, a local business owner, was coaxed into sending money to accounts controlled by the fraud ring. The plan relied on a mix of sizable cash transactions and the use of cryptocurrency as a cover. After the initial transfer, the victim was told that more money was required to keep the investment on track, a claim that kept the scammer’s net growing.
The operation was a joint effort between the New Hartford Police Department, the Federal Bureau of Investigation, Homeland Security Investigations, Immigration and Customs Enforcement, the Utica Police Department, the New York Mills Police Department, and the Oneida County District Attorney’s Office. Coordinated surveillance tracked the suspects’ movements and intercepted their attempts to collect cash in person.
Around noon, Xingxuan Li—a Chicago resident—arrived at a local business in New Hartford to collect more than $50,000 in cash. Authorities describe Li as a courier for the fraud enterprise who had flown from Illinois specifically for the collection. A flight to New York was arranged, a rental vehicle was provided, and a return flight was scheduled for later that evening.
A few hours later, the police attempted a second collection. At approximately 3:30 p.m., Xiaohui Lu, a New York City resident, was taken into custody after investigators determined he had traveled to New Hartford and allegedly attempted to obtain money connected to the same scheme.
Both men were arrested without incident. Li was arraigned in New Hartford Town Court and released pending future proceedings, while Lu was arraigned in Oneida County Centralized Arraignment Part Court and was also released pending upcoming court appearances. Each faces charges of Attempted Grand Larceny in the Second Degree, a Class D felony, and Scheme to Defraud in the Second Degree, a Class A misdemeanor.
Investigators noted that Li and Lu are currently in the United States under pending asylum status. Federal authorities are expected to review their immigration status as the investigation continues. Police say the case may be connected to a larger criminal network involved in cryptocurrency fraud and financial exploitation across multiple states, and that additional arrests or charges could follow.
The New Hartford Police Department issued a statement urging residents to verify the credentials of anyone offering investment opportunities and to remain skeptical of requests involving wire transfers, cryptocurrency transactions, or large cash payments. The statement also reminded that legitimate investment professionals do not conduct business in person to collect large sums of money.
This case underscores the growing sophistication of crypto‑related fraud schemes that target local victims through online platforms and in‑person solicitations. As federal and state agencies coordinate to dismantle such networks, the investigation remains ongoing, with no resolution announced yet.
Investigators say the victim, a local business owner, was coaxed into sending money to accounts controlled by the fraud ring. The plan relied on a mix of sizable cash transactions and the use of cryptocurrency as a cover. After the initial transfer, the victim was told that more money was required to keep the investment on track, a claim that kept the scammer’s net growing.
The operation was a joint effort between the New Hartford Police Department, the Federal Bureau of Investigation, Homeland Security Investigations, Immigration and Customs Enforcement, the Utica Police Department, the New York Mills Police Department, and the Oneida County District Attorney’s Office. Coordinated surveillance tracked the suspects’ movements and intercepted their attempts to collect cash in person.
Around noon, Xingxuan Li—a Chicago resident—arrived at a local business in New Hartford to collect more than $50,000 in cash. Authorities describe Li as a courier for the fraud enterprise who had flown from Illinois specifically for the collection. A flight to New York was arranged, a rental vehicle was provided, and a return flight was scheduled for later that evening.
A few hours later, the police attempted a second collection. At approximately 3:30 p.m., Xiaohui Lu, a New York City resident, was taken into custody after investigators determined he had traveled to New Hartford and allegedly attempted to obtain money connected to the same scheme.
Both men were arrested without incident. Li was arraigned in New Hartford Town Court and released pending future proceedings, while Lu was arraigned in Oneida County Centralized Arraignment Part Court and was also released pending upcoming court appearances. Each faces charges of Attempted Grand Larceny in the Second Degree, a Class D felony, and Scheme to Defraud in the Second Degree, a Class A misdemeanor.
Investigators noted that Li and Lu are currently in the United States under pending asylum status. Federal authorities are expected to review their immigration status as the investigation continues. Police say the case may be connected to a larger criminal network involved in cryptocurrency fraud and financial exploitation across multiple states, and that additional arrests or charges could follow.
The New Hartford Police Department issued a statement urging residents to verify the credentials of anyone offering investment opportunities and to remain skeptical of requests involving wire transfers, cryptocurrency transactions, or large cash payments. The statement also reminded that legitimate investment professionals do not conduct business in person to collect large sums of money.
This case underscores the growing sophistication of crypto‑related fraud schemes that target local victims through online platforms and in‑person solicitations. As federal and state agencies coordinate to dismantle such networks, the investigation remains ongoing, with no resolution announced yet.
