Indholdsfortegnelse
Department of Justice Announces Prison Sentence for Crypto Scammer
The U.S. Department of Justice (DOJ) has handed down a sixty-three-month prison sentence to a Miami crew leader who used stolen identities to steal $4 million from a cryptocurrency exchange. Esteban Cabrera Da Corte, also known as “Steban,” is now required to pay restitution of $3.57 million, in addition to forfeiting $1.2 million.
According to a press release from the department, the scam involved creating fake accounts on a leading cryptocurrency exchange using stolen personal information and fake identification documents. The group then linked these accounts to bank accounts that they controlled and used ATMs to make cash deposits in order to purchase cryptocurrencies from the exchange.
After acquiring the digital assets, the scammers quickly withdrew them to privately controlled wallets. They then initiated a process of claiming unauthorized payments from U.S. banks, receiving fiat-based refunds while retaining the stolen cryptocurrency.
The scheme, which has been ongoing since approximately March 2020, took advantage of the difference between bank-based and cryptocurrency-based transactions. Bank transactions are reversible, while cryptocurrency transactions are not, making them an appealing target for scammers.
Trouble At Centralized Exchanges
In related news, Binance founder Changpeng Zhao was charged by the DOJ last month for anti-money laundering violations. This development led to his resignation as CEO and a $4 billion fine for his company. Centralized exchanges have increasingly become targets for various hacks and scams, with experts suggesting that hackers may be shifting their focus to centralized services over decentralized ones.
According to experts at Elliptic, centralized exchanges are more susceptible to social engineering attacks due to their larger workforces. This provides an easier target for scammers looking to exploit vulnerabilities in the system. In fact, the Justin Sun-owned crypto exchange HTX recently fell victim to a hack, resulting in the loss of over $100 million in various digital assets. Despite this, Sun has assured affected users that their funds will be reimbursed.
The DOJ’s actions and the recent wave of scams targeting centralized exchanges underscore the need for increased vigilance and stronger security measures within the cryptocurrency industry. As the market continues to grow, it is imperative for both users and businesses to remain cautious and proactive in protecting their assets from fraudulent activities.
