A 23-year-old Brooklyn resident was accused of stealing about $16 million in cryptocurrency from about 100 Coinbase users in an alleged phishing and social engineering scheme, prosecutors announced Friday.
Key points to remember:
- Prosecutors say a Brooklyn man stole about $16 million in crypto by posing as a Coinbase employee.
- The alleged scheme relied on social engineering, with funds laundered through cryptocurrency mixers, swaps and gaming sites.
- Authorities seized some assets, set bail at $500,000 and said efforts to recover more funds were ongoing.
According to the Brooklyn District Attorney’s Office, Ronald Spektor posed as a Coinbase representative and contacted victims under the guise that their digital assets were in immediate danger.
Using this claim, Spektor allegedly pressured users to transfer the cryptocurrency to wallets under its control.
Suspected crypto scammer used panic tactics to target victims
Prosecutors said Spektor operated online under the pseudonym “lolimfeelingevil” and relied on classic social engineering tactics rather than technical exploits.
Victims were told their funds could be stolen by hackers unless they acted quickly, a strategy that authorities say was used to circumvent skepticism and trigger panic-driven decisions.
Once the cryptocurrency was transferred, Spektor allegedly attempted to hide the trail of funds by routing the assets through cryptocurrency mixers, token exchange services, and cryptocurrency gaming platforms.
Investigators said the measures were intended to complicate recovery efforts and hide the origin of the stolen funds.
Spektor was arraigned Friday on 31 charges, including first-degree grand larceny, first-degree money laundering and engaging in a fraudulent scheme.
The charges follow a year-long investigation by the Brooklyn District Attorney’s Office.
As part of the investigation, authorities seized approximately $105,000 in cash and approximately $400,000 in digital assets.
Prosecutors said efforts were underway to recover additional funds believed to be linked to the alleged scheme.
Investigators also cited Spektor’s online activity as evidence. Prosecutors said he “openly bragged about his heists” on a Telegram channel called “Enemies of the Blockchain.”
In the recovered messages, Spektor allegedly claimed to have lost $6 million in cryptocurrency to gambling, providing a rare insight into how the stolen funds might have been handled after the thefts.
Spektor lives with his father in Sheepshead Bay, Brooklyn, prosecutors said.
A judge set bail at $500,000, according to ABC7 New York, and denied a request to allow Spektor’s father to post bail, citing concerns about the origin of the funds.
A victim reportedly contacted blockchain investigator ZachXBT, who published an investigation into the alleged scam last year. According to this report, the individual claimed to have lost $6 million.
Coinbase security concerns resurface after $400M data breach disclosed
This case comes as Coinbase continues to face increased scrutiny over user security.
Earlier this year, the exchange revealed a data breach affecting nearly 70,000 users, estimating the damages at around $400 million.
Coinbase said it had refunded affected customers and strengthened internal controls following the incident.
Spektor lives with his father in Sheepshead Bay, Brooklyn, prosecutors said.
A judge set bail at $500,000, according to ABC7 New York, and denied a request to allow Spektor’s father to post bail, citing concerns about the origin of the funds.
Coinbase said it worked closely with the Brooklyn District Attorney’s Office and its virtual currency unit throughout the investigation.
In a blog post, the exchange said it helped identify both the suspect and victims, shared on-chain data related to the alleged scheme, and helped authorities track down stolen assets.
The post Brooklyn man accused of stealing $16 million in crypto from 100 Coinbase users appeared first on Cryptonews.
