Canadian Teenagers Arrested in $4.2 Million Crypto Scam Targeting U.S. Investor

Spear phishing attack orchestrated by Hamilton boys leads to significant cryptocurrency theft

Two seventeen-year-old boys from Hamilton, Canada, have been apprehended and charged with theft and possession of criminally-obtained property after allegedly orchestrating a spear phishing attack to defraud a U.S. man of $4.2 million in Bitcoin and Ethereum.

Spear phishing, a targeted form of phishing, involves fraudulent communication directed at specific individuals rather than a mass audience. In this case, the two teenagers posed as Coinbase Support to gain access to their victim’s cryptocurrency portfolio.

Reports indicate that the stolen funds were partially used to acquire the highly sought-after Instagram handle “@Zombie,” popular among the gaming community. The teens also adopted aliases, operating under the names “Gaze” and “Felon.”

The investigation into the incident was launched last month and involved collaborative efforts between the FBI and the United States Secret Service Electronic Crimes Task Force, according to local sources. The joint operation resulted in the arrest of the two young perpetrators.

At the time of their arrest, the teenage boys were found in possession of approximately $13.4 million worth of various cryptocurrencies. The substantial sum highlights the growing concern surrounding crypto-related crimes, with high-profile incidents seemingly making headlines on a monthly basis.

In response to the escalating number of crypto-related criminal activities, several interagency cooperation initiatives have been formalized recently. In February, the FBI established the Virtual Asset Exploitation Unit, working in conjunction with the Justice Department’s National Cryptocurrency Enforcement Team, which was established in 2021 with a specific focus on combatting crypto-related crimes.

The case of the Hamilton teenagers serves as a stark reminder of the risks associated with the booming cryptocurrency market. As the popularity of cryptocurrencies continues to rise, it is crucial for individuals and authorities alike to remain vigilant against fraudulent schemes and take appropriate measures to safeguard their assets.

Law enforcement agencies across the globe are intensifying their efforts to combat crypto-related crimes, emphasizing the importance of collaboration between international jurisdictions. The arrest of the two Canadian teenagers demonstrates that no matter the age or location, those involved in illegal activities within the cryptocurrency space will be pursued and held accountable for their actions.

As the investigation progresses, legal proceedings will determine the fate of the two teenagers, shedding light on the consequences they may face for their alleged involvement in this multi-million dollar spear phishing scam.

 

Source: Decrypt

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