Originally published on: September 20, 2024
Federal agents in the United States have recently made a significant breakthrough by arresting and indicting two individuals in connection to a massive Bitcoin theft amounting to a staggering $230 million. The elaborate scheme involved targeting a Washington, D.C. resident who was identified as a creditor of Genesis, a cryptocurrency company.
Arrest and Indictment of Alleged Bitcoin Bandits
The US Attorney’s Office for the District of Columbia disclosed the arrest of Malone Lam and Jeandiel Serrano, who now face charges of conspiring to steal and launder more than 4,100 Bitcoin, which at the time amounted to $230 million, from an undisclosed victim in Washington, D.C.
Sophisticated Fraud Strategy Unveiled
Under different online pseudonyms and deploying intricate methods, Lam and Serrano managed to gain unauthorized access to the victim’s accounts, execute fund transfers, and conceal the illicit proceeds through laundering activities beginning from at least August.
Lavish Spending on Ill-Gotten Gains
The duo reportedly splurged on a lavish lifestyle, including extravagant international trips, nightclub visits, luxury cars, high-end watches, jewelry, designer handbags, and rented luxury residences in popular destinations like Los Angeles and Miami.
Blockchain Sleuth Assists Law Enforcement Efforts
ZachXBT, a blockchain investigator, played a pivotal role in aiding law enforcement against what he referred to as a “highly sophisticated social engineering attack.” He also identified a third suspect known by the alias “Wiz” in connection to the case.
Understanding the Culprit’s Techniques
The fraudulent activities were initiated by impersonating Google Support through a fraudulent phone number to infiltrate the victim’s personal accounts. The scammers then posed as Gemini exchange support, falsely claiming the victim’s account had been compromised, thus persuading the victim to reset the two-factor authentication (2FA) and eventually diverting the Gemini assets to a compromised wallet.
Collaborative Efforts Lead to Recovery and Freezing of Funds
Thanks to collaborative efforts involving crypto forensic experts, Web3 security firm zeroShadow, and the Binance Security Team, significant progress has been made in freezing more than $9 million of the stolen funds, with $500,000 already returned to the victim following diligent investigation procedures.
Ongoing Investigation with Federal Agencies
The investigation, which is being actively pursued with the aid of the Federal Bureau of Investigation’s Washington Field Office and the Internal Revenue Service Criminal Investigation Washington Field Office, is still ongoing as authorities work towards untangling the intricate web of deceit woven by the suspects.
Catch up on the Latest:
Stay informed with updates on a Chinese Tether scandal and the recent surge in Bitcoin activities in Bhutan featured in this edition of Asia Express.
