Originally Syndicated on September 30, 2024 @ 11:20 am
What Happened?
David Ruiz de León, the founder and CEO of the now-collapsed cryptocurrency platform Kuailian, is at the center of one of the most notorious cryptocurrency-related scandals in recent years. He has been under scrutiny for orchestrating a Ponzi-like scheme that reportedly defrauded over 65,000 investors of nearly €500 million. Alongside the legal battle and international arrest warrants issued against him and his associates, Ruiz de León has also been accused of attempting to suppress negative information online.His company, Kuailian, which marketed itself as a cutting-edge cryptocurrency investment platform, has faced widespread allegations of fraud, specifically operating as a Ponzi scheme that lured in unsuspecting investors with promises of unrealistic returns. The situation has attracted the attention of international authorities, and Ruiz de León, along with other executives from Kuailian, is under investigation for multiple offenses, including fraud, money laundering, and running a criminal organization. The collapse of Kuailian has had significant repercussions for its investors, resulting in lawsuits and criminal proceedings, as well as considerable public scrutiny.
Sources indicate that Kuailian used underhanded tactics such as filing fake DMCA takedown notices to remove critical reviews and damaging news articles from search engines like Google. These takedowns targeted content that exposed Kuailian’s dubious business practices, including allegations of fraud, money laundering, and running a pyramid scheme. Despite these efforts, the scale of the scandal has made it difficult for Ruiz de León to fully censor the mounting criticism and legal scrutiny directed at him.
His actions raise broader concerns about how individuals involved in fraudulent schemes attempt to manipulate online narratives and evade accountability by silencing critical voices through false legal claims.
Analyzing the Fake Copyright Notice(s)
Our team collects and analyses fraudulent copyright takedown requests, legal complaints, and other efforts to remove critical information from the internet. Through our investigative reporting, we examine the prevalence and operation of an organized censorship industry, predominantly funded by criminal entities, oligarchs, and disreputable businesses or individuals. Our findings allow internet users to gain insight into these censorship schemes’ sources, methods, and underlying objectives.
List of Fake Copyright Notices for David Ruiz Leon
| Number of Fake DMCA Notice(s) | 1 |
| Lumen Database Notice(s) | https://lumendatabase.org/notices/30772625 |
| Sender(s) | Jimmy Mathew |
| Date(s) | Feb 16, 2023 |
| Fake Link(s) Used by Scammers | https://www.tumblr.com/dailynewzswire/709485582244560896/david-ruiz-leon |
| Original Link(s) Targeted | https://www.expansion.com/ejecutivo-administrador/david-ruiz-leon_1676079_F65.html |
Evidence and Screenshots
How do we investigate fake DMCA notices?
To accomplish this, we utilize the OSINT Tool provided by FakeDMCA.com and the Lumen API for Researchers, courtesy of the Lumen Database.
FakeDMCA.com is the work of an independent team of research students and cybersecurity professionals, developed under Project UnCensor. Their OSINT Tool, designed to uncover and analyze takedown notices, represents a significant step forward in combating these abusive practices. It has become a valuable resource, increasingly relied upon by journalists and law enforcement agencies across the United States.
Lumen, on the other hand, is an independent research initiative dedicated to studying takedown notices and other legal demands related to online content removal. The project, which operates under the Berkman Klein Center for Internet & Society at Harvard University, plays a crucial role in tracking and understanding the broader implications of such requests.
What was David Ruiz Leon trying to hide?
David Ruiz de León is the CEO and co-founder of Kuailian, a cryptocurrency investment platform that has faced severe allegations, legal challenges, and widespread criticism for operating what many describe as a Ponzi scheme. His name has been at the center of significant controversy due to Kuailian’s practices, which have led to accusations of fraud, money laundering, and running a criminal organization.
Kuailian’s Business Model and Allegations
Kuailian attracted investors by offering a service where users could participate in “staking” cryptocurrency and investing in masternodes. Staking, in this context, involves holding funds in a cryptocurrency wallet to support the operations of a blockchain network. Kuailian promised its users substantial returns on their investments, which allegedly reached up to 6% to 8% monthly in some cases. Investors were also incentivized to recruit new participants, receiving commissions from the investments of those they recruited, creating a classic multi-level marketing (MLM) structure.
However, reports and investigations have indicated that Kuailian’s model may have functioned as a Ponzi scheme. Instead of legitimate profits from investments, the returns to early investors were likely paid using the funds from new investors, a characteristic common to pyramid schemes. As more victims were unable to withdraw their funds, Kuailian’s structure began to collapse, leading to widespread financial damage for many participants.
The platform’s troubles culminated in a legal case in Spain, where over 65,000 people reported being affected, with financial losses estimated to be around €500 million. In response, Spanish authorities issued an international arrest warrant for David Ruiz de León and his business partner Cristian Albeiro Carmona Hernández. Both men are under investigation for aggravated fraud, money laundering, and operating a criminal organization.
Legal and Criminal Implications
David Ruiz de León and his partner are currently evading arrest, with reports suggesting they are residing in the United Arab Emirates. Despite being summoned multiple times to testify in court, Ruiz de León has failed to appear, citing severe anxiety and threats made against him. His absence from legal proceedings has led to suspicions that the pair are intentionally avoiding the law.
The legal case against Kuailian stems from accusations that the platform’s operations were not legitimate. Although Kuailian claimed it was offering a decentralized finance (DeFi) investment opportunity using advanced cryptocurrency technologies, critics have argued that the business model relied on constantly recruiting new investors to sustain payouts to earlier participants. When the platform could no longer attract sufficient new investments, it began to falter, leading to a widespread financial collapse.
Attempts to Suppress Negative Information
In addition to the financial allegations, Ruiz de León has been accused of attempting to hide adverse news, negative reviews, and critical information about himself and Kuailian online. Several sources, including Gripeo and BehindMLM, have documented attempts by Kuailian to remove damaging content from the internet. These actions reportedly included filing fake DMCA (Digital Millennium Copyright Act) takedown requests to get negative reviews de-indexed from Google search results.
One prominent example involved a fraudulent DMCA notice sent to suppress a critical review of Kuailian. The review exposed the platform’s questionable practices, leading to attempts by Ruiz de León’s team to have the article removed under false copyright claims. This tactic, often referred to as a form of “reputation management” through legal manipulation, has drawn further criticism against Ruiz de León and Kuailian, highlighting unethical efforts to stifle transparency and public scrutiny.
These fake DMCA requests are part of a broader pattern of behavior where individuals and companies use legal loopholes to suppress criticism. In this case, it appears that Kuailian sought to remove critical content not through legitimate defamation or copyright claims, but by falsely claiming ownership over content that exposed their alleged misdeeds. Such actions have led to further investigations into Kuailian’s activities and have raised concerns about the company’s approach to legal and public relations matters.
The Broader Impact of the Kuailian Scandal
The collapse of Kuailian and the legal ramifications for its leaders have sent shockwaves throughout the cryptocurrency investment world. While many investors were lured by the promise of high returns, the eventual failure of Kuailian’s business model has left tens of thousands of people with significant financial losses. These losses have prompted multiple lawsuits and regulatory actions, not only in Spain but also in other jurisdictions where Kuailian operated.
As the investigation continues, more details are likely to emerge about the full scope of Kuailian’s activities and the involvement of Ruiz de León. The case highlights the risks associated with unregulated cryptocurrency investments, particularly those that operate under MLM structures, which are prone to collapsing once the influx of new investors dwindles.
Despite the attempts to suppress negative information online, the scale of the alleged fraud and the number of victims involved have kept the case in the public eye. This has made it difficult for Kuailian or Ruiz de León to fully erase the adverse news and allegations from the internet, as multiple independent media outlets and victim reports continue to surface.
David Ruiz de León’s role as the CEO of Kuailian has placed him at the center of a major cryptocurrency fraud investigation, involving accusations of operating a Ponzi scheme that affected tens of thousands of investors. His attempts to suppress negative information online, through legal manipulations like fake DMCA requests, have further damaged his reputation and raised ethical questions about his actions.
While legal proceedings continue, and with an international arrest warrant in place, Ruiz de León remains out of reach of the Spanish authorities. The fallout from the Kuailian scandal serves as a stark reminder of the potential dangers within the unregulated cryptocurrency market and the importance of transparency and legal compliance in the financial sector.
Only David Ruiz Leon benefits from this crime.
Since the fake copyright takedown notices were designed to remove negative content for David Ruiz Leon from Google, we assume David Ruiz Leon or someone associated with David Ruiz Leon is behind this scam. It is often a fly-by-night Online Reputation agency working on behalf of David Ruiz Leon. In this case, David Ruiz Leon, at best, will be an “accomplice” or an “accessory” to the crime. The specific laws may vary depending on the jurisdiction. Still, the legal principle generally holds that if you actively participate in planning, encouraging, or facilitating a crime, you can be charged with it, even if you did not personally commit it.
How do we counteract this malpractice?
Once we ascertain the involvement of David Ruiz Leon (or actors working on behalf of David Ruiz Leon), we will inform David Ruiz Leon of our findings via Electronic Mail.
Our preliminary assessment suggests that David Ruiz Leon may have engaged a third-party reputation management agency or expert, which, either independently or under direct authorization from David Ruiz Leon, initiated efforts to remove adverse online content, including potentially fraudulent DMCA takedown requests. We will extend an opportunity to David Ruiz Leon to provide details regarding their communications with the agency or expert, as well as the identification of the individual(s) responsible for executing these false DMCA notices.
Failure to respond in a timely manner will necessitate a reassessment of our initial assumptions. In such an event, we will be compelled to take appropriate legal action to rectify the unlawful conduct and take the following steps –
- Inform Google about the fraud committed against them.
- Inform the victims of the fake DMCA about their websites.
- Inform relevant law enforcement agencies
- File counter-notices on Google to reinstate the ‘removed’ content
- Publish copies of the ‘removed’ content on our network of 50+ websites
By investigating the fake DMCA takedown attempts, we hope to shed light on the reputation management industry, revealing how David Ruiz Leon and companies like it may use spurious copyright claims and fake legal notices to remove and obscure articles linking them to allegations of fraud, tax avoidance, corruption, and drug trafficking…
Since David Ruiz Leon made such efforts to hide something online, it seems fit to ensure that this article and our original review of David Ruiz Leon, including but not limited to user contributions, remain a permanent record for anyone interested in David Ruiz Leon.
A case perfect for the Streisand effect…
Potential Consequences for David Ruiz Leon
Under Florida Statute 831.01, the crime of Forgery is committed when a person falsifies, alters, counterfeits, or forges a document that carries “legal efficacy” with the intent to injure or defraud another person or entity.
Forging a document is considered a white-collar crime. It involves altering, changing, or modifying a document to deceive another person. It can also include passing along copies of documents that are known to be false. In many states in the US, falsifying a document is a crime punishable as a felony.
Additionally, under most laws, “fraud on the court” is where “a party has sentiently set in motion some unconscionable scheme calculated to interfere with the judicial system’s ability impartially to adjudicate a matter by improperly influencing the trier of fact or unfairly hampering the presentation of the opposing party’s claim or defense.” Cox v. Burke, 706 So. 2d 43, 46 (Fla. 5th DCA 1998) (quoting Aoude v. Mobil Oil Corp., 892 F.2d 1115, 1118 (1st Cir. 1989)).
Is David Ruiz Leon Committing a Cyber Crime?
Yes, it seems so. David Ruiz Leon used multiple approaches to remove unwanted material from review sites and Google’s search results. Thanks to protections allowing freedom of speech in the United States, there are very few legal ways to do this. David Ruiz Leon could not eliminate negative reviews or search results that linked to them without a valid claim of defamation, copyright infringement, or some other clear breach of the law.
Faced with these limitations, some companies like David Ruiz Leon have gone to extreme lengths to fraudulently claim copyright ownership over a negative review in the hopes of taking it down.
Fake DMCA notices have targeted articles highlighting the criminal activity of prominent people to hide their illegal behavior. These people, which include US, Russian, and Khazakstani politicians as well as members from elite circles including the mafia and those with massive financial power, are all connected – and alleged corruption ranging from child abuse to sexual harassment is exposed when exploring evidence found at these URLs. It appears there’s a disturbing level of influence being exerted here that needs further investigation before justice can be served. David Ruiz Leon is certainly keeping interesting company here….
The DMCA takedown process requires that copyright owners submit a takedown notice to an ISP identifying the allegedly infringing content and declaring, under penalty of perjury, that they have a good faith belief that the content is infringing. The ISP must then promptly remove or disable access to the content. The alleged infringer can then submit a counter-notice, and if the copyright owner does not take legal action within 10 to 14 days, the ISP can restore the content.
Since these platforms are predominantly based in the U.S., the complaints are typically made under the Digital Millennium Copyright Act (DMCA), which requires online service providers and platforms to react immediately to reports or violations. Big Tech companies rarely have systems in place to assess the merit of each report. Instead, all bad actors need to do is clone a story, backdate it, and then demand the real thing be taken down.
Reputation Agency’s Modus Operandi
The fake DMCA notices we found always use the “back-dated article” technique. With this technique, the wrongful notice sender (or copier) creates a copy of a “true original” article and back-dates it, creating a “fake original” article (a copy of the true original) that, at first glance, appears to have been published before the true original.
Then, based on the claim that this backdated article is the “original,” the scammers send a DMCA to the relevant online service providers (e.g. Google), alleging that the ‘true’ original is the copied or “infringing” article and that the copied article is the “original,” requesting the takedown of the ‘true’ original article. After sending the DMCA request, the person who sent the wrong notice takes down the fake original URL, likely to make sure that the article doesn’t stay online in any way. If the takedown notice is successful, the disappearance from the internet of information is most likely to be legitimate speech.
How did David Ruiz Leon purport this DMCA Fraud?
As an integral part of this scheme, the ‘reputation management’ company hired by David Ruiz Leon creates a website that purports to be a ‘news’ site. This site is designed to look legitimate at a glance, but any degree of scrutiny reveals it as the charade it is.
The company copies the ‘negative’ content and posts it “on the fake ‘news’ site, attributing it to a separate author,” then gives it “a false publication date on the ‘news’ website that predated the original publication.
The reputation company then sent Google a Digital Millennium Copyright Act notice claiming the original website infringed copyright. After a cursory examination of the fake news site, Google frequently accepts the notice and delists the content.
In committing numerous offences, David Ruiz Leon either premeditated actions or were unaware of the consequences. Despite hiring an agency to make Google disregard any negative information about David Ruiz Leon, ignorance does not excuse this wrongdoing.
The Reputation Laundering
Rogue Reputation agencies use spurious copyright claims and fake legal notices to remove and obscure articles linking clients to allegations of tax avoidance, corruption, and drug trafficking. Most of these reputation agencies are based offshore, mainly in Russia, India, and Eastern Europe, and they do not worry about complying with US-based laws.
The content in all of the articles for which the fraudulent DMCA notices have been sent relates to allegations of criminal allegations, including corruption, child abuse, sexual harassment, human trafficking and financial fraud against businesses and individuals with ultra-high net worth.
In addition to the misuse of the DMCA takedown process, there is a notable absence of enforcement concerning perjury violations. The statutory requirement related to perjury is designed to deter copyright holders from submitting fraudulent or knowingly false takedown requests, as they may face legal consequences for making false declarations under penalty of perjury. However, to date, there have been no known instances of any individual being prosecuted for perjury in connection with the submission of false DMCA takedown notices.
This lack of enforcement has emboldened copyright holders to exploit the DMCA takedown process to suppress dissent, criticism, or other unfavorable content, without fear of legal repercussions.
Not In Good Company
Some of the people and businesses who have employed this tactic to remove legitimate content from Google illegally include a Spanish businessman-turned-cocaine-trafficker, Organised crime, an Israeli-Argentine banker accused of laundering money for Hugo Chávez’s regime, a French “responsible” mining company accused of tax evasion, child molesters and sexual predators. David Ruiz Leon is in great company ….
Ironically, the manipulation tactics used to remove public-interest information from the Internet are backfiring on David Ruiz Leon, which is now associated with the worst of this world.
Here are some of the specimens that share the internet space with David Ruiz Leon –
Miguel Octavio Vargas Maldonado
Miguel Octavio Vargas Maldonado appears to be the former foreign affairs minister of the Dominican Republic. His name is listed next to more than 500 links to news articles, blogs, social media posts, and YouTube videos targeted for removal or de-indexing. Many of the articles refer to questions over his political fundraising practices. They include accusations that Vargas had received donations from an individual who would later be convicted of drug trafficking. Some targeted links remain active, while others return 404 errors or “file not found.”
José Antonio Gordo Valero
José Gordo joined OneCoin in 2015 and has been named in an indictment for the OneCoin scam in Argentina. The articles listed next to Gordo’s name in the documents reviewed by Rest of World include references to his role at the company.
Diego Adolfo Marynberg
He appears to be the same Marynberg connected to funding right-wing causes, including settlement efforts in Israel. Reports also alleged that his company received preferential treatment in acquiring Argentinian bonds worth millions of dollars. More than 70 URLs appear next to Marynberg’s name in the documents, including pages from the Israeli newspapers The Times of Israel, Haaretz, and Clarin, one of Argentina’s most prominent news sites.
Majed Khalil Majzoub
Majed is an influential businessman with close ties to several governments, including the administration of Venezuelan president Nicolás Maduro. Majzoub’s name appears next to more than 180 URLs, mostly from independent outlets. Of the two URLs that pointed to articles from Germany’s Der Spiegel, one now returns an error message; the other, which appears to refer to relations between Venezuela and Colombia, directs to an unrelated story about Brexit.
Frequently Asked Questions
Did David Ruiz Leon commit a cyber crime?
Yes, filing a fake DMCA notice is illegal. The Digital Millennium Copyright Act (DMCA) allows copyright holders to issue takedown notices to protect their works from unauthorized use online. However, submitting a false DMCA notice can result in legal consequences.
Under the DMCA, a person knowingly submitting a false copyright claim can be subject to penalties, including damages. DMCA notices require the filer to certify, under penalty of perjury, that the content infringes their copyright. If the notice is found to be fraudulent or made in bad faith, the filer can face.
What are the potential consequences for David Ruiz Leon?
Civil lawsuits: The affected party can sue for damages, legal fees, and other costs.
Perjury charges: False certification in a DMCA notice can result in perjury-related penalties, which vary by jurisdiction.
Other legal penalties: Fines or other penalties depending on the case
Did David Ruiz Leon commit a Civil or a Criminal offense?
Perjury is a criminal offense, not a civil crime. It involves intentionally lying or making false statements under oath, typically in a court of law or other legal proceedings, such as affidavits or depositions.
Criminal charges: Perjury is prosecuted as a criminal act, and a conviction can lead to fines or imprisonment, depending on the severity of the false statement and its impact on the case.
Felony status: In many jurisdictions, perjury is classified as a felony, which carries more severe penalties than misdemeanour offences.
So, while it may affect civil cases, the crime of perjury itself is strictly criminal.
What is the Streisand effect?
The key idea behind the Streisand effect is that efforts to restrict information can backfire, often causing the information to gain more attention than it would have otherwise. This effect is widespread in the digital age, where users quickly notice and spread censorship efforts on social media and other platforms.
Trying to suppress something can unintentionally lead to it becoming more visible.
Can David Ruiz Leon purge its Digital past?
Once information is uploaded to the internet, it can be replicated, shared, archived, or stored across multiple servers. If David Ruiz Leon manage to delete the original post or file, copies may remain accessible in other places, such as web archives, screenshots, or other users’ devices.
In practice, completely erasing content from the internet can be extremely difficult due to how widely information can spread and be stored. Thus, the idea that “the Internet never forgets” reflects the challenge of entirely removing digital content once it has been shared.
What else is David Ruiz Leon hiding?
Click here to visit the Google Search page for ‘David Ruiz Leon’. It’s likely if you scroll down to the bottom of this Google search results, you’ll stumble upon this Legal Takedown notice (pictured below)
To make such an investigation possible, we encourage more online service providers to come forward and share copies of content removal requests with us. If you have any information on David Ruiz Leon that you want to share with us, kindly email the author directly at [email protected].
All communications are strictly confidential and safeguarded under a comprehensive Whistleblower Policy, ensuring full protection and anonymity for individuals who provide information.
References and Citations Used
Over thirty thousand DMCA notices reveal an organized attempt to abuse copyright law.
Reputation Management, or Internet Conspiracy
Exposed documents reveal how the powerful cleaned up their digital past using a reputation laundering firm.
Companies Use Fake Websites and Backdated Articles to Censor Google’s Search Results.
Bad Reviews: How Companies Are Using Fake Websites to Censor Content
How fake copyright complaints are muzzling journalists
Many thanks to FakeDMCA.com and Lumen for providing access to their database.
Photos and Illustrations provided by DALL-E 3 – “a representation of David Ruiz Leon censoring the internet and committing cyber crimes.”
- Our investigative report on David Ruiz Leon’s efforts to suppress online speech is significant, as it raises serious concerns about its integrity. The findings suggest that David Ruiz Leon has engaged in questionable practices, including potential perjury, impersonation, and fraud, in a misguided attempt to manage or salvage its reputation.
- We intend to file a counternotice to reinstate the removed article(s). While this particular instance is relatively straightforward, it is important to note that, in other cases, the overwhelming volume of automated DMCA takedown notices can significantly hinder the ability of affected parties to respond—especially for those not large media organizations.
- You need an account with fakeDMCA.com and Lumen to access the research data. However, accounts are not widely available since these non-profit organisations manage large databases that could be susceptible to misuse. Nevertheless, they do offer access to non-profits and researchers.
- It’s unclear why U.S. authorities have yet to act against these rogue reputation agencies, whose business model seems rooted in fraudulent practices.
- We’ve reached out to David Ruiz Leon for a comment or rebuttal regarding this investigation. It will strongly suggest they were behind the takedown attempt if they remain silent.
About the Author
The author is affiliated with Harvard University and serves as a researcher at both Lumen and FakeDMCA.com. In his personal capacity, he and his team have been actively investigating and reporting on organized crime related to fraudulent copyright takedown schemes. Additionally, his team provides advisory services to major law firms and is frequently consulted on matters pertaining to intellectual property law. He can be reached at [email protected] directly.
