Crypto phishing scam allegedly affected nearly 100 victims across the United States
US prosecutors have charged a Brooklyn resident in connection with a large-scale cryptocurrency phishing operation that allegedly resulted in nearly $16 million in stolen digital assets. The case highlights the growing threat of social engineering attacks targeting crypto users and the increasing involvement of law enforcement in pursuing cyber-enabled financial crimes.
Details of the alleged crypto phishing scheme
According to court filings, a 23-year-old man from Sheepshead Bay, Brooklyn was indicted on 31 criminal counts, including first-degree grand larceny and money laundering. Authorities allege the scheme operated from April 2023 through December 2024, during which time approximately 100 individuals were defrauded.
Prosecutors say the suspect posed as a customer support representative, warning users that their accounts were compromised. Victims were allegedly instructed to transfer funds to “secure” wallets that were secretly controlled by the accused. Once transferred, the assets were laundered through crypto mixers, swapping services, and online gambling platforms to obscure their origin.
Scale of losses and investigation findings
Individual losses were substantial. One victim reportedly lost more than $1 million, while another lost over $900,000. Investigators recovered approximately $105,000 in cash and $400,000 in cryptocurrency, a fraction of the total allegedly stolen.
Authorities interviewed more than 70 victims during the investigation and identified online accounts and messaging channels where the suspect allegedly boasted about the thefts and gambling losses.
Crypto-related phishing and social engineering scams remain one of the sector’s most costly threats. Law enforcement officials emphasized cooperation with industry partners to trace funds and identify suspects. The accused has pleaded not guilty, and prosecutors stated there were concerns he planned to leave the country prior to arrest.
The indictment underscores the risks facing crypto users and reinforces the importance of vigilance, user education, and coordinated enforcement efforts to combat increasingly sophisticated digital asset fraud.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.