Legal Brief — NTI-LEAVITT-2026-001

Federal Criminal Exposure

Applicable Federal Statutes

This scheme triggers multiple federal criminal statutes. Any single count can result in significant prison time. Multiple counts create compounding exposure. Federal prosecutors typically charge the strongest 2–3 counts and use the others as leverage.

Statute	Offense	Applies Because	Max Sentence	Strength
18 USC § 1343	Wire Fraud	Communications (text, email, phone) used to solicit money for a fraudulent investment	20 years / count	VERY STRONG
18 USC § 1344	Bank Fraud	If bank wire transfers or ACH used to send funds to the fraudsters	30 years	STRONG if bank used
18 USC § 1956	Money Laundering (Concealment)	Proceeds routed through multiple wallets and exchanges to conceal origin	20 years	STRONG
18 USC § 1957	Money Laundering (Spending)	Criminally derived funds exceeding $10,000 transacted through financial institutions	10 years	STRONG
18 USC § 2314	Interstate Transportation of Stolen Property	Victim's funds moved across state lines / international wire transfer	10 years	MODERATE
18 USC § 1030	Computer Fraud and Abuse Act	If any computer system was compromised; website used to steal credentials	10 years	MODERATE
Securities Act § 17(a)	Securities Fraud (Offer/Sale)	Offered and sold "investments" using false statements about returns and company existence	20 years	STRONG
Rule 10b-5	Securities Fraud (Anti-Fraud)	Material misrepresentations in connection with the purchase/sale of a security	Civil + criminal	STRONG (SEC)
18 USC § 1962 (RICO)	Racketeer Influenced and Corrupt Organizations	Pattern of predicate acts (wire fraud, money laundering) by an organized enterprise	20 years + treble damages	REQUIRES PATTERN PROOF

International Treaty Coverage

If the perpetrators are located outside the US, the FBI and DOJ can still pursue prosecution through mutual legal assistance treaties (MLATs) with countries that have extradition treaties with the US. Major exchanges (Bybit, Gate.io) operate globally but are subject to US subpoena power for US-based investigations. The Clarifying Lawful Overseas Use of Data (CLOUD) Act also compels US-incorporated companies to produce records even if stored overseas.

Where to File

Regulatory Filing Targets

Filing with multiple agencies creates a paper trail, increases investigative resources, and improves the likelihood of prosecution. These agencies share intelligence with each other. Each filing strengthens the others.

FBI — Internet Crime Complaint Center (IC3)

PRIORITY #1

Portal	ic3.gov
What to file	Wire fraud, investment fraud, cryptocurrency fraud
What to include	All loss amounts, wallet addresses, all communication screenshots, this site URL as supporting documentation
Reference number	Request an IC3 complaint number — attach it to all other filings
Time to file	Complete within 30 minutes — do TODAY

SEC — Enforcement Tip

HIGH PRIORITY

Portal	sec.gov/tcr (Tips, Complaints, Referrals)
What to file	Securities fraud, unregistered investment adviser, Ponzi scheme
Whistleblower award?	Potentially yes — SEC Whistleblower Program pays 10–30% of sanctions > $1M. Requires attorney for formal award claim.
Key facts to include	All 9 "no registration" database results, names used by suspects, total victim loss

FTC — Federal Trade Commission

Portal	reportfraud.ftc.gov
What to file	Romance/relationship fraud element (if suspect built personal rapport), investment fraud
Why it matters	FTC can pursue civil enforcement and has jurisdiction over deceptive practices across state lines

FinCEN — Suspicious Activity Report

Portal	BSA E-Filing (fincen.gov) — requires financial institution account
Best path	Ask your bank to file a SAR on your behalf — provide them the case number and this site URL
Key target	TCvnWqQ2... ($27.3M dark energy market) — potential unlicensed MSB
Why it matters	FinCEN can compel exchanges to freeze accounts pending investigation

State Securities Regulator

Portal	nasaa.org → find your state regulator
What to file	Unregistered investment adviser operating in your state, securities fraud
Key advantage	State regulators can act faster than federal agencies on smaller cases. Some states have dedicated crypto fraud units.

CISA + National Crypto Targets

CISA Reporting	cisa.gov/reporting — cybersecurity incident
ChainAbuse	chainabuse.com — public wallet flagging, informs exchanges automatically
OFAC	If operators are foreign nationals on sanctions lists, Treasury OFAC can freeze assets globally

Civil Litigation Theory

Civil Recovery Options

Causes of Action

Federal RICO (18 USC § 1962)

Three or more predicate acts (wire fraud, money laundering) over 10 years constitutes a RICO "pattern." Civil RICO allows victims to sue for treble (3x) damages plus attorney's fees. Requires an organized enterprise — the evidence of coordinated personas and multi-wallet operation supports this.

Unjust Enrichment

Defendants received $36,150 at the victim's expense under false pretenses. This is textbook unjust enrichment — no contract is required, and no intent to repay is needed. Recoverable in virtually any US jurisdiction.

Conversion (Civil Theft)

Wrongful exercise of dominion over property belonging to another. Applying conversion to cryptocurrency is well-established in US courts since 2020. The $36,150 + interest is recoverable.

Fraudulent Misrepresentation

Elements: (1) a false statement of material fact, (2) defendant knew it was false, (3) defendant made the statement intending for the victim to act, (4) victim relied on it, (5) victim suffered damages. Every element is met and documented here.

Exchange Liability Theory

Can Bybit or Gate.io Be Sued?

This is an evolving area of law. Exchanges have been named as defendants in crypto fraud cases on multiple theories:

Negligence: Failed to detect and stop obvious money laundering
RICO enterprise: Knowingly conducted business for criminal enterprise
BSA/AML violations: Regulatory failure enabling the fraud

Most exchange-defendant cases settle or dismiss on Section 230 / terms-of-service defenses, but the threat of litigation pressures compliance cooperation. An attorney can evaluate your specific jurisdiction.

Tether Freeze — Civil Mechanism

TETHER LEGAL FREEZE REQUEST

Tether Limited, issuer of USDT, has the technical ability to freeze any wallet address holding USDT. They have a documented history of doing so at the request of law enforcement and, in some cases, private parties presenting compelling fraud evidence. The process:

File IC3 complaint — get complaint number
Request that your local FBI field office contact Tether via official law enforcement channel
In parallel, submit Tether's private complaint form at tether.to/legal
Include all wallet addresses, loss amounts, IC3 number, and link to this investigation
The two wallets with $483.88 remaining are the freeze targets

Ready-to-Send Templates

Compliance Letter Templates

The following three letters are fully drafted. Copy the text, fill in the bracketed fields, and send. They are drafted for use by the victim (William Leavitt), his attorney, or any designated advocate. Using all three simultaneously creates maximum pressure and the fastest path to KYC disclosure.

Template 1 of 3

Bybit — Voluntary KYC Information Request

Send to: compliance@bybit.com — Subject as shown below

FILL IN: sender name, sender address, date, IC3 complaint number

[YOUR FULL NAME]
[Your Address]
[City, State, ZIP]
[Date]

Via Email: compliance@bybit.com

RE: Voluntary KYC Disclosure Request — Crime-Related Wallet Activity — Case NTI-LEAVITT-2026-001

Dear Bybit Compliance Team,

I am writing to request voluntary disclosure of Know Your Customer (KYC) identity information for a wallet account that has been forensically linked to cryptocurrency investment fraud.

I am the victim of an investment fraud operation known as "Nanotrading Investment" (website: nanotrading.online) that obtained $36,150 USD in TRC-20 USDT from me under false pretenses between May and September 2025. A full forensic investigation has been completed and is published at tronfraud.unykorn.org. An FBI Internet Crime Complaint Center (IC3) complaint has been filed (Reference No.: [YOUR IC3 NUMBER]).

Bybit Wallet at Issue:

Wallet Address: TU4vEruvZwLLkSfV9bNw12EJTPvNr7Pvaa
Classification: Bybit hot wallet — provided TRX gas to fraud wallet on August 11, 2025, the same day the victim sent $1,000 USDT to the fraud wallet (TGf5bSmBBUPAY7bhsGhmafeD8w19h6sLdb)
Blockchain: TRON Mainnet
TronScan Verification: https://tronscan.org/#/address/TU4vEruvZwLLkSfV9bNw12EJTPvNr7Pvaa

Information Requested:

1. Full legal name, address, and date of birth of the account holder associated with wallet TU4vEruvZwLLkSfV9bNw12EJTPvNr7Pvaa
2. Account registration email address and phone number
3. Transaction history between this wallet and the fraud wallet TGf5bSmBBUPAY7bhsGhmafeD8w19h6sLdb
4. Any related accounts or clusters the fraud wallet has conducted transactions with on your platform

Legal Context:

This request is submitted under 31 CFR 1022 (Bank Secrecy Act provisions applicable to Money Services Businesses) and in connection with an active fraud investigation. The underlying conduct constitutes wire fraud (18 USC § 1343), money laundering (18 USC § 1956), and securities fraud (Securities Act § 17(a)).

If formal legal process would assist your compliance team, I or my legal counsel are prepared to provide a preservation letter and to cooperate with any law enforcement referral Bybit may wish to make to the FBI Cyber Division.

I respectfully ask for a response within 10 business days. You may reach me at [YOUR EMAIL] or [YOUR PHONE].

Sincerely,

[YOUR FULL NAME]
IC3 Complaint Reference: [IC3 NUMBER]
Investigation Reference: NTI-LEAVITT-2026-001

Template 2 of 3

Gate.io — KYC Information Request + Freeze Request

Send to: compliance@gate.io — Subject as shown below

FILL IN: sender name, sender address, date, IC3 complaint number

[YOUR FULL NAME]
[Your Address]
[City, State, ZIP]
[Date]

Via Email: compliance@gate.io

RE: Voluntary KYC Disclosure + Balance Freeze Request — Active Fraud Case — Investigation NTI-LEAVITT-2026-001

Dear Gate.io Compliance Team,

I am writing to request voluntary KYC disclosure and asset freeze assistance related to an active investigation into cryptocurrency investment fraud affecting me personally.

I am the victim of a fraud operation called "Nanotrading Investment" (nanotrading.online) that obtained $36,150 in TRC-20 USDT from me under false pretenses. A complete blockchain forensic investigation (Case NTI-LEAVITT-2026-001) is published at tronfraud.unykorn.org and an FBI IC3 complaint has been filed (Reference No.: [YOUR IC3 NUMBER]).

Gate.io-Connected Wallet at Issue:

Exit Wallet: TLSptUxetSpjB8xRS6QrnJwuBY7Q7cuMyh
Classification: Final exit wallet routed to Gate.io — receives swept funds from fraud collection wallet
Current USDT Balance: $366.94 (as of investigation date — these are confirmed fraud proceeds)
Blockchain: TRON Mainnet
TronScan: https://tronscan.org/#/address/TLSptUxetSpjB8xRS6QrnJwuBY7Q7cuMyh

Information Requested:

1. Full legal name, address, and date of birth of the registered Gate.io account holder who controls wallet TLSptUxetSpjB8xRS6QrnJwuBY7Q7cuMyh or into which funds from this wallet were deposited
2. Account email address and phone number
3. KYC documents on file for the account
4. Complete transaction history into and out of this wallet address on Gate.io's platform

Freeze Request:

The $366.94 USDT balance in wallet TLSptUxetSpjB8xRS6QrnJwuBY7Q7cuMyh represents identifiable fraud proceeds directly traceable to the victim's stolen funds on-chain. I respectfully request Gate.io voluntarily freeze this balance pending law enforcement review, consistent with your AML/CTF compliance obligations under applicable laws.

Legal Context:

The conduct underlying this request constitutes wire fraud (18 USC § 1343), money laundering (18 USC § 1956), and securities fraud. Gate.io may have independent AML/CTF obligations to report and freeze suspected crime proceeds under applicable regulations. Your voluntary cooperation will be noted in all law enforcement referrals.

I ask for a response within 10 business days. Contact: [YOUR EMAIL] / [YOUR PHONE].

Sincerely,

[YOUR FULL NAME]
IC3 Complaint Reference: [IC3 NUMBER]
Investigation Reference: NTI-LEAVITT-2026-001

Template 3 of 3

Tether Limited — Emergency USDT Freeze Request

Send to: support@tether.to and legal@tether.to

Note on Tether Freezes

Tether freezes most reliably at the request of law enforcement via official channels. Submit this letter AND request your FBI IC3 contact forward a formal freeze request. Private freeze requests are less consistently honored, but Tether has granted them in documented cases of large-scale fraud.

FILL IN: sender name, date, IC3 number

[YOUR FULL NAME]
[Date]

Via Email: support@tether.to / legal@tether.to

RE: EMERGENCY FREEZE REQUEST — Fraud Proceeds — $483.88 USDT Across Two Wallets — NTI-LEAVITT-2026-001

Dear Tether Limited Legal and Trust & Safety Teams,

I am requesting an emergency freeze of USDT balances in two wallet addresses that contain confirmed, traceable fraud proceeds from a cryptocurrency investment fraud scheme (Case NTI-LEAVITT-2026-001).

Background:

I am the victim of an investment fraud operation called "Nanotrading Investment" (website: nanotrading.online) that fraudulently obtained $36,150 in TRC-20 USDT from me between May and September 2025. After a full-chain forensic investigation, the following fraud proceeds are confirmed to remain in two wallets on the TRON network:

Freeze Targets:

Wallet 1: TSt36w9edfNJaCQs433MyUNeHYBajoJTzK
USDT Balance: $116.94
Role: Primary sweep wallet receiving fraud collection proceeds
TronScan: https://tronscan.org/#/address/TSt36w9edfNJaCQs433MyUNeHYBajoJTzK

Wallet 2: TLSptUxetSpjB8xRS6QrnJwuBY7Q7cuMyh
USDT Balance: $366.94
Role: Gate.io exit wallet — second-layer sweep destination
TronScan: https://tronscan.org/#/address/TLSptUxetSpjB8xRS6QrnJwuBY7Q7cuMyh

Total Freeze Target: $483.88 USDT

Evidence Summary:

• On-chain trace from victim payment to fraud wallet (TGf5bSmBBUPAY7bhsGhmafeD8w19h6sLdb) to both freeze targets is complete and documented
• Complete forensic report with all transaction hashes: tronfraud.unykorn.org/wallet-tracker.html
• FBI IC3 complaint filed — Reference No.: [YOUR IC3 NUMBER]
• The underlying fraud involves wire fraud (18 USC § 1343) and money laundering (18 USC § 1956)

Request:

1. Emergency freeze of all USDT in both addresses above
2. Confirmation of freeze action to this email
3. Referral of this matter to applicable law enforcement contacts

Tether Limited has both the contractual authority (under USDT terms) and moral obligation to freeze confirmed fraud proceeds. The total amount is small — $483.88 — but represents the last traceable piece of a $36,150 theft.

I am available immediately to provide additional documentation or to work with any law enforcement contacts Tether designates. Contact: [YOUR EMAIL] / [YOUR PHONE].

Respectfully urgent,

[YOUR FULL NAME]
FBI IC3 Reference: [IC3 NUMBER]
Case Reference: NTI-LEAVITT-2026-001
Full Investigation: tronfraud.unykorn.org