Indictment of Cryptocurrency Hacker Network Members in Queens
Seven individuals from a California-based cryptocurrency hacker network have been indicted by a Queens grand jury on charges of grand larceny, money laundering, identity theft, and other related crimes. The investigation focused on the hack of a private Bitcoin wallet owned by a 61-year-old man from Jamaica.
Background of the Case
The victim, who is the owner of an auto body shop in southeast Queens, purchased Bitcoins in 2017 and saw his investment grow substantially over time. However, in November 2022, unauthorized transactions led to his Bitcoin being stolen from his Blockchain.com wallet.
At the time of the hack, the stolen bitcoins were valued at $92,000. Today, the same cryptocurrency amount is worth more than $300,000.
Arrest and Investigation
The alleged mastermind, along with his parents and other co-defendants, was arrested, extradited to Queens, and arraigned in Queens Supreme Court. Additional defendants are still being sought in connection with the case.
A long-term investigation conducted by the Queens District Attorney’s Office uncovered over 250 transactions used to launder the stolen money. The suspects employed a « peel chain » technique to obfuscate the origin of the funds.
Recovery of Stolen Funds
The stolen funds were traced to deposit addresses associated with Cash App and other financial services. Each of the seven defendants received a portion of the stolen money and used it for personal expenses. The remainder of the funds was funneled into a centralized account controlled by the alleged mastermind.
Legal Proceedings
The defendants face charges of grand larceny, money laundering, identity theft, and computer trespass. If convicted, they could receive a maximum sentence of 5-15 years in prison. Queens District Attorney Melinda Katz emphasized the dedication of her office’s Cyber Crime and Cryptocurrency Unit in pursuing justice.
Queens residents who have been victims of cryptocurrency theft are encouraged to contact the Cyber Crimes team at 718-286-6673 or CyberCrimes@queensda.org.
Source : qns.com