A Brooklyn resident, Ronald Spektor, has been accused of stealing about $16 million in cryptocurrency from around 100 Coinbase users, prosecutors said on December 19.
Authorities stated on December 19 that Spektor used the online name “lolimfeelingevil” and ran a scam that tricked people into sending him their digital money.
He reportedly posed as a Coinbase employee and told users that their accounts were at risk of being hacked. Worried about losing their savings, victims were persuaded to move their funds into accounts controlled by Spektor.
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According to prosecutors, once he gained access to the money, Spektor tried to conceal its source. He allegedly used online services that mix or swap cryptocurrency and also placed bets on gambling websites to move the stolen assets around.
The Brooklyn District Attorney’s Office said its yearlong investigation led to the seizure of about $105,000 in cash and nearly $400,000 in digital currency. Officials said they are still working to recover additional funds.
Spektor now faces 31 criminal charges, including grand larceny, money laundering, and fraud. He was arraigned in court on Friday.
Investigators also said Spektor often bragged about his actions in an online Telegram chat group called “Blockchain enemies”. In some messages, he claimed to have lost $6 million while gambling with cryptocurrency.
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