Suspects arrested in $230 million crypto theft

Two people suspected of conspiring to steal and launder more than $230 million in crypto were arrested in Miami this week.

The two defendants, Malone Lam (aka “Greavys”, “Anne Hathaway” and “$$$”) and Jeandiel Serrano (aka “Box”, “VersaceGod” and “@ SkidStar”), 20 and 21 years old respectively, were arrested Wednesday night by the FBI and appeared in court yesterday, Thursday.

The two suspects are said to have carried out an attack on August 18th and managed to steal more than 4,100 Bitcoins from a victim in Washington (worth over $230 million at the time).

According to court documents, the two young men and other individuals allegedly gained unauthorized access to the accounts crypto, transferring funds to their own crypto wallets, before laundering the stolen assets.

See also: Germany: 47 crypto exchange services used by cybercriminals were shut down

The suspects likely used crypto mixers and crypto exchange services to launder the stolen cryptocurrencies, using “peel chains,” pass-through wallets, and VPNs to hide their identities and locations throughout the scheme.

The suspects then used the stolen funds to travel around the world, purchase luxury cars, expensive watches, designer handbags, and visit nightclubs in Los Angeles and Miami.

Crypto scam researcher ZachXBT, who assisted official investigators, has identified a third individual, nicknamed “Wiz,” who may also be involved in the crypto theft. He revealed that the group targeted a creditor of cryptocurrency exchange Genesis, using fake phone numbers and impersonating Google and Gemini customer support (with the aim of hacking into accounts).

While posing as a Gemini support representative, he told the victim that the account had been compromised and tricked them into re-enabling two-factor authentication (2FA) and sharing their screen via the AnyDesk.

The investigation found that a cluster of Ethereum addresses linked to Serrano and Wiz received over $41 million in recent weeks. Despite efforts to cover their tracks, investigators traced the laundered money to the purchase of luxury cars, watches, and jewelry.

The funds were quickly laundered through multiple cryptocurrency exchanges, with transactions alternating between Bitcoin, Litecoin, Ethereum, and Monero.

See also: FBI: Crypto scams led to $5.6 billion in losses in 2023

While most of the funds were converted to Monero for added anonymity, Wiz and Serrano allegedly made critical mistakes, linking the laundered money to the original stolen amounts.

The FBI arrested the two suspects after tracking their lavish spending. Social media posts from friends also helped reveal locations in Los Angeles and Miami.

As the use of cryptocurrencies continues to grow in popularity, so do the criminals turning to them for money laundering and other illegal activities. This presents a unique challenge for law enforcement agencies.

One way authorities are addressing this issue is through increased training and resources devoted to cybercrime investigations. The FBI has created specialized teams and partnerships with other agencies to handle cases involving cryptocurrencies. In addition, efforts have been made to regulate and monitor crypto transactions in order to prevent illegal activities.

See also: Indodax: Hackers stole crypto assets worth over $20 million.

However, as the recent Miami case shows, criminals are constantly finding ways to circumvent these measures. This highlights the need for continued collaboration and innovation in the fight against cybercrime .It is also important for individuals to educate themselves on safe practices when using cryptocurrencies, such as storing their digital assets securely and only using reputable crypto exchanges.

Source: www.bleepingcomputer.com