Prosecutors Detail Russians’ Crypto Phishing Scheme in Forfeiture Suit

Technology

The two Russians who were sanctioned earlier this week by the U.S. Treasury Department on accusations of being crypto thieves allegedly got their millions through market manipulation and phishing. 

Prosecutors detailed Danil Potekhin and Dimitrii Karasavidi’s alleged heists, victims and target exchanges in a 30-page forfeiture complaint filed Wednesday against the pair’s previously seized crypto funds.

In late October 2017, hackers pumped $5 million of one victim’s crypto into NEO’s Gas market, skyrocketing the usually sleepy token’s value 13,000% before ordering their personal gas-holding Poloniex accounts to cash out into ETH. The victim “lost virtually all of his $5 million in cryptocurrency,” prosecutors alleged.

Karasavidi and Potekhin face a mounting lineup of legal troubles. This week, they’ve been added to the Treasury Department’s OFAC blacklist and also face federal wire fraud, hacking and money laundering charges.

Products You May Like

Articles You May Like

Belarus Issues International Arrest Warrant for Owner of Country’s ‘Largest Crypto Exchanger’
Price analysis 8/12: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, AVAX
How Bitcoin whales make a splash in markets and move prices
Elon Musk: US ‘past peak inflation’ after Tesla sells 90% of Bitcoin
Bitcoin drops to support as looming CPI print shakes up crypto and stock markets

Leave a Reply

Your email address will not be published.