US Federal Prosecutors Charge Fraudster Duo in $230M Crypto Theft

Federal prosecutors on Thursday formally charged two fraudsters with crypto theft amounting to more than $230 million in cryptocurrencies. This move was revealed by blockchain investigator ZachXBT.

Malone Lam, 20, and Jeandiel Serrano, 21, were charged with stealing and laundering crypto from a victim in Washington DC. Lam is a Singaporean citizen and operates under the guise of “Anne Hathaway” and “$$$.” Serrano, on the other hand, uses “VersaceGod” and “@SkidStar” to operate online.

The indictment notes that the duo would conduct thefts related to cryptocurrency, and would even launder the stolen crypto through exchanges and mixing services. “The conspirators would fraudulently gain access to victim cryptocurrency accounts and then transfer victim funds into their possession. They laundered the proceeds, including by moving the funds through various mixers and exchanges using “peel chains,” pass-through wallets, and virtual private networks (VPNs) to mask their true identities,” the press release said.

The document further added that after collecting the funds Lam and Serrano would spend their laundered cryptocurrency on international travel and nightclubs. They would even use luxury automobiles, watches, jewelry, designer handbags, and rental homes in Los Angeles and Miami.

Investigation into Crypto Theft Unfolds

ZachXBT (@zachxbt) first identified the potential theft of approximately 4,100 bitcoins in August. The analyst noted that these threat actors targeted a Genesis creditor in a sophisticated scam. In the process, they first posed as Google Support using a spoofed number to gain access to the victim’s personal accounts.

They then impersonated Gemini Support through falsely claiming that the victim’s account had been hacked. Following some social engineering, the attackers convinced the victim to reset their two-factor authentication (2FA) and then transfer funds from their Gemini account to a compromised wallet.

They also persuaded the victim to use AnyDesk for screen sharing. It ultimately exposed private keys from the victim’s Bitcoin Core wallet.

The analyst also shared recently that several high-profile and celebrity X accounts have been hacked, promoting a fake token.

He revealed that meme coin scammers targeted large companies like Lenovo India, Yahoo News UK, and the EU Commission Directorate General for Regional and Urban Policy. Besides this, the fraudsters also didn’t spare celebrities like Oliver Stone and Alexandre Lacazette, the French footballer. However, fortunately, the scammers couldn’t make much profit out of this scheme.

Crypto scams are a common affair and one of the ways to safeguard from them is by checking if the tokens come from legitimate organizations. One of the other ways to do this is by checking the liquidity pool size.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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