US DOJ Charges Twelve Individuals in $263 Million Crypto Fraud Case
The US Department of Justice (DOJ) has charged twelve individuals with a crypto fraud scheme involving over $263 million in stolen digital assets. Key details include:
- Charges include racketeering, wire fraud, money laundering, and obstruction of justice.
- Arrests took place in California, involving both U.S. and foreign nationals.
- The operation is linked to a previous incident where $243 million was stolen from a creditor of Genesis, a defunct trading firm.
- Scammers used social engineering tactics to gain access to sensitive accounts.
- Stolen assets were laundered through mixing services to obscure their trail on the blockchain.
- Some suspects were involved in physical break-ins related to the thefts.
In a separate incident, Coinbase reported an insider breach where employees were bribed for confidential user data. This resulted in:
- Exposure of sensitive user information.
- Compensation plans for affected users ranging from $180 million to $400 million.
- A $20 million reward for information on the extortionists.
Binance also suspended an employee for suspected insider trading, highlighting ongoing risks of insider involvement in crypto scams. The DOJ emphasized its commitment to combating crypto crime, evidenced by its recent request for a 20-year prison sentence for Alex Mashinsky, former CEO of Celsius, who received a 12-year sentence instead.