A Brooklyn resident, Ronald Spektor, has been charged with stealing an estimated $16 million in cryptocurrency from approximately 100 users of the popular cryptocurrency exchange, Coinbase. Prosecutors announced the charges on Friday, detailing a scheme that allegedly relied on phishing and social engineering tactics.
Spektor, who is 23 years old, is accused of impersonating a Coinbase employee to instill a sense of urgency among victims. He contacted them with claims that their digital assets were at imminent risk, pressuring them into transferring their cryptocurrency to wallets controlled by him. Operating under the alias “lolimfeelingevil,” Spektor reportedly used fear-based tactics, which exploit human psychology, to bypass typical skepticism and prompt quick, panic-driven responses from his targets.
The sophisticated nature of the scheme didn’t stop there. Once he obtained the stolen digital assets, Spektor allegedly laundered the money through a variety of cryptocurrency services, including mixers, token swapping platforms, and gambling sites. These steps were designed to obscure the trail of the funds, making recovery efforts more complicated for authorities.
The investigation into Spektor’s activities spanned over a year and was conducted by the Brooklyn District Attorney’s Office, which culminated in his arraignment on 31 charges that include first-degree grand larceny and first-degree money laundering. Authorities have seized around $105,000 in cash and approximately $400,000 in digital assets during their investigation, and they are actively pursuing additional funds believed to be linked to the alleged scams.
Further evidence against Spektor includes his own online communications. Prosecutors revealed that he boasted about his illicit activities in a Telegram channel known as “Blockchain enemies.” In messages that were recovered, Spektor mentioned having lost $6 million in cryptocurrency gambling, providing insight into how he might have handled the stolen assets post-theft.
Living in Sheepshead Bay, Brooklyn, Spektor’s current bail is set at $500,000. A judge has denied the request for his father to post bond, citing concerns regarding the source of the funds. The ongoing case also has implications for Coinbase, which is currently under scrutiny for user security after recently disclosing a data breach that affected nearly 70,000 users and resulted in damages estimated at around $400 million.
In response to the situation, Coinbase stated that they collaborated closely with the Brooklyn District Attorney’s Office and its Virtual Currency Unit throughout the investigation. The exchange played a pivotal role in identifying both the suspect and the victims, sharing crucial on-chain data connected to the alleged crimes and assisting authorities in tracing stolen assets. The case continues to unfold, with efforts to recover more funds ongoing.
