Feds shut down $230 million crypto scam as Bitcoin thieves lived lavishly
Federal agents recently arrested and charged two men in connection with a $230 million cryptocurrency scam. The incident sheds light on how the scammers used their ill-gotten gains to live a lavish lifestyle, including luxury cars, apartments, jewelry, and nightlife. According to a report from the U.S. Attorney's Office for the District of Columbia, the two men, Malon Lam and Jeandiel Serrano, were accused of conspiring to steal and launder more than 4,100 bitcoins from an unnamed Genesis creditor.
Since at least August, the suspects used multiple online aliases and sophisticated tactics to access victim accounts, transfer funds, and launder money. They used fake phone numbers to impersonate Google support agents to obtain victims' personal information, and further impersonated Gemini exchange support agents, claiming that their accounts had been hacked, and tricked victims into resetting two-factor authentication (2FA), which ultimately resulted in bitcoin being transferred to wallets they controlled.
In this highly sophisticated social engineering attack, the scammers not only stole huge amounts of money, but also used them for lavish spending, including international travel, nightclubs, high-end cars, and luxury goods. As the investigation progresses, law enforcement has frozen more than $9 million and is working closely with relevant parties to track and return some of the stolen assets. The U.S. Attorney's Office for the District of Columbia said the case is still an ongoing investigation and has received strong support from the FBI and IRS Criminal Investigation.
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