Former compliance officer charged with money laundering, extortion

A former compliance officer at — registered in Malta as Foris Dax MT limited — has been charged with extortion and money laundering after he allegedly threatened to expose sensitive information while demanding compensation from the company. 

Thirty-three-year-old Jose Luis Alonso Melchor was arraigned by magistrate Nadia Vella in a Malta court on Thursday following his arrest and termination from the Singapore-based crypto exchange. 

According to Malta Today, Melchor was fired after discovered he had broken an attachment order. Melchor then allegedly obtained sensitive information from the firm through his compliance officer role and threatened to publish it.

He allegedly told his employer that he wanted €44,000 ($47,666) in compensation for his job loss.

Melchor faces 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.

A €2 million ($2.2 million) freezing order was upheld against Melchor and his bail requests were denied as the magistrate deemed him a flight risk. told Protos, “The employee in question was reported to the authorities immediately upon discovery of his actions, and his employment was terminated.

“We continue to cooperate fully with law enforcement and have no further comment as the matter is pending litigation.”

Read more: Scoop: EU officials suspect Binance is faking accounts in Ireland and Malta

It’s unclear what Melchor’s attachment order relates to, but it can involve a judge seizing a defendant’s assets to ensure any potential monetary damages can be paid in full., under its Malta registration, was fined €2.85 million ($3.1 million) in March this year by the Dutch Central Bank. had failed to register in the country for two years, breaking money laundering and terrorism financing laws.

The exchange was also made to delist USDT pairs in compliance with Canada’s Ontario Securities Commission regulations in January 2023.

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