Los Angeles law enforcement arrested two individuals involved in a $243 million theft from a Genesis creditor.
Investigation and Arrests
In August, three scammers, identified as Malone Iam, Veer Chetal, and Jeandiel Serrano, swindled a Genesis Global creditor of nearly $250 million by impersonating a Gemini customer support agent. The investigation, spearheaded by crypto sleuth ZachXBT, revealed multiple videos of the trio sharing the loot and expressing euphoria over the successful theft. In one video, one of the perpetrators shrieked, “I’m gonna spazz,” after the group received some 4,064 Bitcoin.
Scale of Theft and Evasion
With the help of other bad actors, the funds were split across over a dozen exchanges and on-chain trading venues, such as Binance, eXch, and Thorswap. The hackers also swapped the stolen wealth between Bitcoin, Litecoin, Ethereum, and Monero to obfuscate their digital footprint. After the heist, members of the hacker trio went on a spending spree, splurging in Los Angeles clubs and buying luxury cars in Miami.
Consequences and Recovery Measures
ZachXBT, together with blockchain forensic specialists CF Investigators and ZeroShadow, petitioned the Binance Security Team for aid, leading to $9 million in stolen assets being frozen. The victim also recovered around $500,000 and worked closely with experts in the investigation. Malone Iam and Jeandiel Serrano, two-thirds of the original scammer trio, were arrested in LA on September 18. According to ZachXBT, large on-chain transactions during the arrests suggest that local police seized more funds from the suspects. At press time, the whereabouts of Veer Chetal, the final member of the group, remained unknown.
The incident highlights the need for enhanced security and vigilance regarding potential fraud schemes in the cryptocurrency industry.
Comments