As a seasoned crypto investor with over two decades of experience under my belt, I can’t help but feel a mix of emotions upon reading about this latest $230 million cryptocurrency theft and laundering scheme. On one hand, it’s disheartening to see such blatant abuse of the system that we all rely on for our financial freedom. But on the other hand, I can’t help but chuckle at the audacity of these two youngsters, living large in Miami and LA while orchestrating their scheme under pseudonyms like “Anne Hathaway” and “VersaceGod.
A Singaporean living in the U.S. and an American national have faced accusations for plotting to illegally obtain and clean more than $230 million worth of digital currencies.
20-year-old Malone Lam, a Singaporean residing between Miami and Los Angeles, along with 21-year-old Jeandiel Serrano of Los Angeles, were taken into custody by the FBI on Wednesday evening.
Details Of The Crypto Laundering Scheme
As per a communique from the United States Department of Justice, I uncovered that Lam and Serrano illicitly obtained over 4,100 Bitcoins, estimated to be worth around $230 million, from a Washington D.C.-based victim through fraudulent means.
On Thursday, the individuals recognized as Lam (or Anne Hathaway and $$$) online, and Serrano (or VersaceGod and @SkidStar), each appeared in court for the first time.
They stand charged for orchestrating a cryptocurrency heist and money laundering scheme, in which they illegally gained access to unsuspecting victims’ digital wallets, enabling them to move funds into their possession. The authorities have stated that this activity has been ongoing since August of the current year.
In their plan, as claimed, Lam and Serrano employed sophisticated methods to disguise where the stolen funds came from. It is alleged that they utilized cryptocurrency trading platforms and tumbling services to transfer and hide the trail of the stolen Bitcoins.
One approach used extensively during this process involved the “chain peeling” technique. This strategy essentially involves dividing massive amounts of cryptocurrency into numerous smaller transactions, thereby complicating efforts to track the funds.
Moreover, they utilized Virtual Private Networks (VPNs) and anonymous wallets as tools, which helped conceal their identity during the process of laundering the illicit funds, thus escaping detection.
How Was The Scam Pulled Off?
Investigator ZachXBT shared details about the methods employed in the scam on social media platform X. According to him, the suspects manipulated their victims using advanced psychological techniques called “sophisticated social engineering”.
2/ Incident Summary: On August 19, 2024 the threat actors targeted a single Genesis creditor by:
1) Pretending to be Google Support over a fake phone number, trying to breach personal accounts.
— ZachXBT (@zachxbt) September 19, 2024
In a $230 million fraud case, it was revealed that a criminal organization targeted a creditor of the defunct trading firm Genesis. They reportedly pretended to be Google support, using a fake phone number, to persuade the victim into resetting their two-factor authentication. This step allowed the perpetrators to seize control of the victim’s cryptocurrency.
Based on information from the U.S. Department of Justice, the ill-gotten cryptocurrency was utilized to finance an extravagant lifestyle, which included purchasing high-end items and indulging in costly experiences.
As an analyst, I’ve discovered that according to law enforcement reports, both Lam and Serrano have been found to have used their laundered cryptocurrency for extravagant spending. This included lavish travels, frequent visits to high-end nightclubs, purchasing luxury automobiles, expensive jewelry, designer handbags, and leasing properties in Miami and Los Angeles.
As a crypto investor, I couldn’t help but notice the flamboyant lifestyle some individuals were living, seemingly fueled by their cryptocurrency holdings. Little did I know that these assets were ill-gotten. Eventually, my suspicions were confirmed when law enforcement stepped in to uncover the truth behind these stolen riches.
Featured image created with DALL-E, Chart from TradinhgView
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2024-09-21 10:12