A 23-year-old Brooklyn, New York, man has been charged with orchestrating a massive crypto-phishing and social engineering scheme that defrauded nearly 100 Coinbase users in the United States of $16 million in assets.
According to US prosecutors, Ronald Spector called exchange clients, posed as a company representative, and asked them to transfer digital assets to accounts under his control. Law enforcement officials noted that the scammer intimidated his victims, claiming their cryptocurrencies could be stolen by a hacker.
The investigation revealed that the stolen funds were laundered through various exchanges, gambling platforms, and the purchase of digital assets. Approximately $105,000 in cash and $400,000 in cryptocurrency have been recovered so far, and the search for additional assets continues.
The Drug Enforcement Administration’s Virtual Currency Section noted that the defendant used online forums, channels in Telegram and Discord to show off your achievements and recruit others to participate in scams.
Spector allegedly used the nickname lolimfeelingevil in Telegram, running a channel called Blockchain enemies, where he bragged about his thefts and gambling losses, and taught others social engineering tactics.
This week, Spector appeared before Supreme Court Justice Danny Chan on 31 charges, including grand theft, grand money laundering, and fraud.