Brooklyn man charged in phishing scam that stole $16 million from Coinbase users

brooklyn prosecutor said On Friday, 23-year-old resident Ronald Spector was charged with stealing $16 million in cryptocurrency from approximately 100 Coinbase users.

The individual, who went by the name “lolimfeelingevil” online, is said to be behind the phishing and social engineering scheme. Prosecutors said Spector posed as a representative from Coinbase and persuaded users to transfer virtual currency to accounts he controlled.

Prosecutors said Spector motivated the victims by claiming that their digital assets were at risk of being stolen by hackers. He then allegedly attempted to launder the digital assets using crypto mixers, swapping services, and crypto gambling websites.

Spector was indicted Friday on 31 charges, including first-degree grand larceny, first-degree money laundering and participating in a fraudulent scheme.

Approximately $105,000 in cash and approximately $400,000 in digital assets were seized as a result of an investigation by the Brooklyn District Attorney’s office conducted over the past year. Authorities say they are working to secure more stolen assets.

Prosecutors said Spector “openly bragged about his heist” in a channel called “Blockchain Enemies” on the messaging platform Telegram. In recovered messages, Spector allegedly said he lost $6 million in virtual currency gambling.

in blog postCoinbase said it is working closely with the Brooklyn District Attorney’s Office and the Cryptocurrency Division. The company said it helped identify Spectre and the victims, shared related on-chain activity, and supported efforts to trace the stolen funds.

One of Spektor’s victims contacted pseudonymous blockchain detective ZachXBT. published Last year, an investigation was carried out against the suspected fraudster. A person who approached ZachXBT said he was scammed out of $6 million.

Coinbase faced retaliation this year for a data breach that affected approximately 70,000 users. disclosed In May. At the time, the company estimated damages at $400 million. exchange said We acted quickly to compensate users affected by social engineering schemes using stolen information and strengthened vendor and insider controls.

Spector lives with his father in Sheepshead Bay, Brooklyn, the government said. A judge set Spector’s bail at $500,000. ABC7 New York. The judge refused to allow Spector’s father to post bond, citing an inability to identify the source of the funds.