Key Points:
- The U.S. Department of Justice has charged a dozen individuals in a conspiracy involving $263 million in cryptocurrency fraud and money laundering.
- The operation involved the misappropriation of $243 million from a creditor connected to Genesis through social engineering scams.
- Coinbase recently reported a data breach where scammers bribed employees, potentially costing the exchange between $180 million to $400 million in payouts.
Details:
The U.S. Justice Department announced charges against twelve individuals for their roles in a scheme that resulted in the theft of over $263 million in cryptocurrency. This indictment is linked to a previous incident in which these scammers successfully accessed $243 million from a Genesis creditor.
According to blockchain investigator ZachXBT, this debt trading firm was deceived last year by scammers who redirected digital assets through crypto mixers after stealing them. Many of those charged include U.S. nationals and international individuals arrested in California this past week; however, two are currently overseas.
The charges filed against these individuals include various offenses such as racketeering, wire fraud, money laundering, and obstruction of justice.
For More Information: Police Arrest Two Individuals Related to the $243M Crypto Heist Targeting Genesis Creditor
Social engineering strategies are increasingly employed by fraudsters to illicitly obtain cryptocurrency. They typically secure private information and manipulate users into sending cryptocurrencies to them.
Recently, Coinbase disclosed issues stemming from scammers bribing employees and accessing critical user data, anticipating to compensate clients significantly due to this breach, potentially between $180 million to $400 million.
Related Read: Coinbase Could Pay Customers Up to $400M for Data Breach
