Fed orders teen hacker to return $5.2M in BTC stolen in 2016

TL;DR Breakdown

  • The FED has ordered a crypto hacker, Ahmad Wagaafe Hared, to return $5.2 million in stolen Bitcoin and a BMW i8 purchased with the stolen BTC.
  • The crypto hacker used SIM swapping, where Hared’s alleged team transferred the designated phone number to their own devices.
  • The case is tied to that of  Anthony Francis Faulk, who defrauded 11 victims of more than $3.4 million.

Description

In a case that exemplifies the murky intersection between cutting-edge technology and traditional criminal justice, federal authorities are pursuing a teenage hacker accused of stealing millions of dollars in Bitcoin. The officials are not only seeking the return of $5.2 million in stolen crypto but have also set their sights on a high-end sports car, … Read more

In a case that exemplifies the murky intersection between cutting-edge technology and traditional criminal justice, federal authorities are pursuing a teenage hacker accused of stealing millions of dollars in Bitcoin. The officials are not only seeking the return of $5.2 million in stolen crypto but have also set their sights on a high-end sports car, the hacker purportedly purchased with the ill-gotten gains. 

Teen hacker at odds with the Fed

According to a report from The San Francisco Standard, a federal magistrate issued an order last week requiring Ahmad Wagaafe Hared to return $5.2 million in stolen Bitcoin from 2016. Between 2016 and 2018, Hared and two co-conspirators stole the Bitcoin and the vehicle as part of a SIM-swapping conspiracy. 

SIM-swapping happens when a hacker deceives a cell phone operator into handing over control of a target’s cell phone by posing as the phone’s owner. The method is a typical social engineering tactic used by hackers to gain access to personal data in order to steal from their targets—or to circumvent text-message-based second-factor authentication procedures.

In 2016, Ahmad Wagaafe Hared was a teenager living in Tucson, Arizona. Hared allegedly targeted victims in Northern California, so his case is being heard in the federal court in San Francisco. 

Although it is unclear which Northern California executives the hacker targeted, the Bay Area has long been a center for crypto startups. According to Crunchbase, hundreds of crypto organizations have called the region home, including the crypto exchange Coinbase, which formerly had its headquarters in San Francisco and is now leasing space in Mountain View.

According to independent cybersecurity correspondent Brian Krebs, Harred was a well-known user of the so-called darknet under the alias ‘winblo’. Using this alias, Harred was said to have been “extremely active” and “revered” on an online marketplace where purchasers bought highly sought-after social media accounts.

How did the crypto hack go down?

According to prosecutors, Hared and his accomplices initially obtained the personal contact information of crypto executives and investors. Then, they allegedly contacted mobile service providers and convinced company representatives they were the legitimate owners of the targeted phone numbers. 

Hared’s alleged team would then transfer the designated phone number to their own device, a practice known as SIM swapping.

Prosecutors stated in a 2019 indictment that Hared, and his co-conspirators gained access to victims’ email and other accounts by obtaining their phone numbers. Hared and his team ultimately used their access to these accounts to force their way into the crypto wallets of their victims and drain them.

Harred reportedly paid approximately $150,000 for a BMW i8 using some of the stolen funds.

The scheme appeared profitable. According to reports, on Friday, a federal judge in San Francisco issued a preliminary order of forfeiture authorizing the government to seize 119.8 Bitcoins from Hared, which are presently worth $5.2 million. Hared must also surrender 93,420 Stellar Coins, valued at $11,770, and a 2017 BMW i8, which would fetch approximately $60,000 on the used car market.

Hacker yet to be sentenced

According to the order, Hared entered into a plea agreement in 2019, but many of the case’s documents remain under seal, and the agreement is not public. Hared was initially accused of a number of crimes in January 2019, including computer-related fraud, identity theft, and extortion.

Prosecutors informed Hared’s judge that the criminal case of Anthony Francis Faulk was related, although court documents do not clarify the relationship.

According to the Department of Justice, Anthony Francis Faulk was sentenced to 36 months in prison and ordered to pay nearly $3 million in restitution for his role in a conspiracy to defraud more than a dozen cryptocurrency owners. This was announced by United States Attorney Ismail J. Ramsey and FBI Special Agent in Charge Robert K. Tripp. 

The sentence was handed down by the Honorable William H. Orrick, District Judge of the United States. In addition, the court ordered the forfeiture of numerous assets that comprised or were derived from the criminal proceeds obtained by Faulk.

Prosecutors allege that Faulk’s scheme defrauded 11 victims of more than $3.4 million. Faulk was ordered to pay restitution of $2,816,433 to 11 victims of the scheme. Faulk was charged in a distinct criminal case, pled guilty to one count of conspiracy to commit money laundering, and was ordered to pay restitution to two additional victims. 

The court also ordered the forfeiture of several assets seized by the government that were either proceeds of the conspiracy or were derived from them. These assets consist of a nearly $1 million home in Latrobe, Pennsylvania; three J.P. Morgan Chase accounts totaling approximately $12,525,592, $6,242,919, and $18,118; a 2018 Mercedes-Benz GTS; a 2018 Nissan Rouge; a 2019 Chevrolet Silverado K1500; diamond jewelry; a Rolex; Tiffany earrings; and a Louis Vuitton handbag and wallet.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:Fed orders teen hacker to return $5.2M in BTC stolen in 2016

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年9月11日 23:59
Next 2023年9月12日 01:08

Related articles

  • Blockchain.com Secures Payment License from Singapore’s Central Bank

    TL;DR Breakdown Blockchain.com has been granted an MPI license by the Monetary Authority of Singapore, allowing it to offer digital payment token services to institutional and accredited investors. Singapore is intensifying its efforts to establish itself as a leading crypto hub, with recent regulatory decisions and a commitment of $112 million to support the fintech sector. Description In a significant move that underscores Singapore’s commitment to fostering a robust cryptocurrency ecosystem, Blockchain.com, a leading crypto exchange, has secured a payments license from the Monetary Authority of Singapore (MAS). This development not only solidifies Blockchain.com’s position in the Asian market but also highlights the city-state’s strategic approach to integrating digital currencies into its … Read more In a significant move that underscores Singapore’s commitment to fostering a robust cryptocurrency ecosystem, Blockchain.com, a leading crypto exchange, has secured a payments license from the Monetary Authority of Singapore (MAS). This development not only solidifies Blockchain.com’s position in the Asian market but also highlights the city-state’s strategic approach to integrating digital currencies into its financial framework. Contents hide 1 A Milestone for Blockchain.com 2…

    Article 2023年8月8日
  • Aave Protocol Launches GHO Stablecoin on Ethereum Mainnet with $2M Minted

    TL;DR Breakdown Aave Protocol has launched GHO, an algorithmic stablecoin, on the Ethereum mainnet. GHO is a decentralized and transparent stablecoin backed by multiple digital assets, ensuring stability and security within the Aave Protocol. GHO aims to revolutionize the stablecoin market by providing verifiability of reserves and utilizing self-executing smart contracts. Governance of GHO is entrusted to AAVE Description Decentralized finance (DeFi) platform Aave has recently unveiled its new stablecoin, GHO, on the Ethereum mainnet. GHO is an algorithmic dollar-pegged stablecoin designed to provide stability and transparency to the DeFi ecosystem. With over $2.19 million worth of GHO minted already, Aave aims to revolutionize the stablecoin landscape through its decentralized and over-collateralized approach. This … Read more Decentralized finance (DeFi) platform Aave has recently unveiled its new stablecoin, GHO, on the Ethereum mainnet. GHO is an algorithmic dollar-pegged stablecoin designed to provide stability and transparency to the DeFi ecosystem. With over $2.19 million worth of GHO minted already, Aave aims to revolutionize the stablecoin landscape through its decentralized and over-collateralized approach. This article delves into the launch of GHO, its…

    Article 2023年7月17日
  • Why is the crypto market down today? September worries build-up

    TL;DR Breakdown Crypto markets fall, losing all the gains from the favorable Grayscale court verdict. Core PCE data has shaken up digital asset markets. Core PCE in July rose 4.2% year over year, up from a 4.1% annual rate recorded in June but in line with analysts’ expectations. NFT markets have started to show signs of recovery after a dead silence in the last few months. Description The fourth quarter of 2023 has arrived, and the performance of the crypto market does not appear promising. Bitcoin and other crypto coins fell following the release of crucial inflation data, continuing their decline after a rally this week in response to a favorable court ruling. September has historically been a difficult month for Bitcoin, … Read more The fourth quarter of 2023 has arrived, and the performance of the crypto market does not appear promising. Bitcoin and other crypto coins fell following the release of crucial inflation data, continuing their decline after a rally this week in response to a favorable court ruling. September has historically been a difficult month for Bitcoin,…

    Article 2023年9月1日
  • Investors embrace UBS-Credit Suisse deal with enthusiasm

    TL;DR Breakdown The emergency takeover of Credit Suisse by UBS is being positively received by investors. Despite potential job losses and integration challenges, the merger is seen as a strategic opportunity for UBS. UBS expects to attract $150 billion in new client funds annually, becoming a wealth management powerhouse. Description Investors are reacting positively to the emergency takeover of Credit Suisse by Switzerland’s largest bank, UBS. The deal, viewed by many as a promising strategic move, could reposition UBS as a prominent player in the financial landscape, despite concerns of potential job losses and a complex integration process. Promising opportunities amid risks The takeover, completed … Read more Investors are reacting positively to the emergency takeover of Credit Suisse by Switzerland’s largest bank, UBS. The deal, viewed by many as a promising strategic move, could reposition UBS as a prominent player in the financial landscape, despite concerns of potential job losses and a complex integration process. Promising opportunities amid risks The takeover, completed for 3 billion Swiss francs (approximately $3.4 billion), has led to a rising wave of optimism among…

    Article 2023年7月18日
  • Today’s crypto highlights: Unmissable updates unveiled

    TL;DR Breakdown Grayscale challenges the SEC; Court sides with Grayscale but Bitcoin ETF not guaranteed. Binance drops Banco de Venezuela for P2P trading, aligning with international financial sanctions. Shibarium, after initial hiccups, rebounds with over 100,000 wallets since its relaunch. Description The crypto sphere never slows down, and neither should you. From Binance’s fresh stance to Grayscale’s courtroom standoff, it’s been a whirlwind. Not to be left behind, Shibarium’s audacious move only further heats the crypto arena. Let’s dive into the details. Grayscale’s Victory: More than Just a Headline In the quest for Bitcoin ETF dominance, … Read more The crypto sphere never slows down, and neither should you. From Binance’s fresh stance to Grayscale’s courtroom standoff, it’s been a whirlwind. Not to be left behind, Shibarium’s audacious move only further heats the crypto arena. Let’s dive into the details. Grayscale’s Victory: More than Just a Headline In the quest for Bitcoin ETF dominance, Grayscale’s confrontation with the United States Securities and Exchange Commission (SEC) takes center stage. After an initial rejection due to perceived vulnerabilities to fraudulent activities, Grayscale…

    Article 2023年8月30日
TOP