On September 1, a group of officials led by U.S. Attorney Tracy Wilkinson filed a civil complaint with U.S. District Court in the Central District of California, claiming they were digital. has identified four digital wallets containing more than a million teasers (USDT). Involved in cable fraud, computer fraud and money laundering. According to court documents, the legitimate owner of the fund is a California resident who was cheated of more than 200 bitcoins (BTC) in April 2021 by a coinbase employee in disguise.
Customer support is getting lost
As described in the claim, anonymous victims were contacted who appeared to be Coinbase customer support after purchasing about 200 BTC in their Pro account at the time of the exchange.
The alleged representative of the platform claimed that the victim’s account had been closed due to the size of the purchase and that the limit on transactions through the fund needed to be increased. The fraudster further suggested that the victim upgrade their account to Coinbase Prime.
Once the victim gave the fake customer support representative access to their account through the remote desktop tool, the fraudster initiated a transaction that saw about 206 BTC they call the victim’s new prime wallet.
In addition to a few small transactions performed over the next few hours, the value of digital assets stolen from the victim’s Coinbase account exceeded 11.5 million.
Follow the money
The four suspects demanded in detail how the digital assets transferred from the compromised account were removed “through multiple small transactions” before being concentrated in the wallet.
At the moment, the government is requesting the court to allow the confiscation of assets for the duration of the civil forfeiture process.
Law firm Caten Muchin Rosenman LLP partner Daniel Davis explained to the Quintelegraf that the federal government must prove that the funds are subject to confiscation. If the plaintiff is the winner, the proceeds will be forfeited to the United States before being returned to the rightful owner. Davis further commented:
The move is a growing trend where the federal government is trying to use its citizen fraud authority to secure digital assets. […] One would expect that with the increase in interest and transactions towards digital assets, identifying government assets, if it believes it was part of an illegal activity, such civil confiscation activities will increase.
David Silver of the law firm Silver Miller, who earlier this week told Cointelegraph that he was involved in cryptocurrency class activities, believes that the judiciary should use confiscation measures in a civil case to make exciting news for everyone who wants to see crypto hit the mainstream. Silver mentions:
Stolen digital resources are one of the biggest problems in space and a much needed solution to recover stolen cryptocurrencies. I will see more such actions from law enforcement and civil litigants. ”
In July, Cointelegraph reported that the US Martial Services, or USMS, digital custody platform Anchorage Digital was taken into custody and digital assets were confiscated by citizens. Some estimates suggested that between 2014 and July 2021, USMS seized answers to 185,000 BTCs associated with federal crime.