United States authorities have charged twelve more suspects. They are linked to a $230 million cryptocurrency theft. The charges include a RICO conspiracy for their alleged roles. These individuals also laundered the stolen digital funds. They used crypto exchanges and mixing services for this. Two other suspects, Malone Lam and Jeandiel Serrano, were previously charged. Their arrests occurred in September 2024 for this conspiracy. Court documents state they gained unauthorized access to victim accounts. For example, one D.C. victim lost 4,100 Bitcoin in August. This single theft was worth over $230 million then.
Investigator ZachXBT revealed key details about the attack methods. The group targeted a creditor of the Genesis crypto exchange. They used spoofed phone numbers to deceive their targets. The attackers impersonated Google and Gemini customer support staff. While posing as Gemini support, they tricked one particular victim. They convinced the victim to reset two-factor authentication. The victim also shared their screen using AnyDesk software. This gave attackers access to private keys from Bitcoin Core. They then stole the target’s large cryptocurrency holdings. Stolen funds were rapidly split and moved across many exchanges.
The twelve newly indicted defendants face multiple serious charges.
These include cyber-enabled racketeering conspiracy and also money laundering. Many among them also face charges of obstruction of justice. Conspiracy to commit wire fraud is another common charge. The defendants include Marlon Ferro and Hamza Doost from California. Others are Conor Flansburg, Kunal Mehta, and Ethan Yarally. Cody Demirtas, Aakash Anand, and Evan Tangeman were also charged. Joel Cortes, John Tucker Desmond, and two unknown individuals complete the list.
Most stolen crypto was converted to Monero for added anonymity.
However, attackers reportedly made some critical errors during laundering. These mistakes unfortunately linked laundered funds back to the original thefts. They used crypto mixers, exchanges, and peel chains to hide funds. Virtual private networks also helped conceal their identities and locations. The stolen cryptocurrency was then used to finance very lavish lifestyles. Defendants allegedly spent funds on luxury cars, watches, and designer bags.
Reference:
