Coin Dispute Network: a crypto 'recovery service' prosecutors say recovered nothing
In August 2024 the Manhattan District Attorney charged Michael Lauchlan, of Las Vegas, over a website called Coin Dispute Network that advertised cryptocurrency tracing and recovery to people who had already lost money. In May 2025 the office announced additional charges against Lauchlan and a second defendant, Gary Zaydman. Prosecutors allege the business used fabricated credentials, fake testimonials and invented blockchain tracing reports to collect fees, and that more than 200 customers reported no recovery at all. The defendants are presumed innocent.
- Year
- 2025
- Where
- United States
- Outcome
- Charged (an allegation, not a conviction)
- Victims
- Not stated in the sources
- Schemes
- Recovery scams
- Last reviewed
- 2026-10-10
The facts, as recorded
- The Manhattan District Attorney's Office and Homeland Security Investigations announced charges on 5 August 2024 against Michael Lauchlan, a Las Vegas resident who also used the name "Max Handler", over the website CoinDisputeNetwork.com.
- The 2024 complaint charged grand larceny in the third and fourth degrees and two counts of scheme to defraud in the first degree, and described more than 175 Coin Dispute Network customers and at least three confirmed victims.
- Prosecutors allege the site claimed to offer blockchain analysis, cryptocurrency tracing and recovery assistance, and was populated with falsified news articles and fake testimonials.
- Customers allegedly paid an initial consultation fee in Ethereum to speak to a "recovery analyst", were then falsely promised recovery, and were asked for further Ethereum payments while being sent fraudulent documentation.
- On 22 May 2025 the District Attorney announced additional charges against Lauchlan and a second defendant, Gary Zaydman, including conspiracy, identity theft and grand larceny.
- The 2025 announcement says nine New Yorkers were defrauded and that more than 200 Coin Dispute Network customers reported no successful recovery of any cryptocurrency.
- Prosecutors allege the operation used hired actors for fake endorsements, counterfeit news articles, false social media personas and fabricated tracing reports with false success rates.
Why this case matters
Most of the recovery scams this site documents are described in regulators’ warnings, which say what the scheme looks like without naming a defendant. This is one of the few where prosecutors have charged named people with running a “recovery service” as a business, and the allegations map closely onto the FBI’s warnings: a professional-looking site, testimonials that could not be checked, a fee up front, and then more requests for money.
The service version of the scam
Coin Dispute Network is the “service” form of recovery fraud rather than the impersonation form. Nobody posed as an agent. The alleged pitch was a commercial one, aimed at people searching for a way to trace lost crypto. That is a different route to the same victim, and it shows why “they contacted me” is not the only sign to check: some victims go looking and find a site built to be found.
The caveat
This case is charged, not decided. Everything above is an allegation drawn from prosecutors’ public announcements. Michael Lauchlan and Gary Zaydman are presumed innocent unless and until proven guilty in court. The sources reviewed for this page report charges only, and this page does not describe any plea, verdict or sentence because none was found. As of 2026-10-10 no later outcome was found in the sources reviewed.
Sources
- HSI New York Task Force Investigation Leads to Charges Against Man Who Used Scam Crypto Recovery Website to Steal From Hopeful Customers. US Immigration and Customs Enforcement, Homeland Security Investigations. Accessed 2026-09-29. Supports: Lauchlan's name and alias, the 2024 charges, how the site operated, the fake tracing reports, and the customer counts in the original complaint.
- Manhattan DA Announces New Charges in Alleged Crypto Recovery Scam by Coin Dispute Network Executives. Hoodline, reporting a Manhattan District Attorney's Office announcement. Accessed 2026-09-29. Supports: The May 2025 additional charges, Gary Zaydman, the nine New York victims, the 200-plus customers reporting no recovery, and the presumption-of-innocence statement.