Brooklyn Man Charged with Stealing $16 Million in Cryptocurrency from 100 Coinbase Users

Brooklyn Man Charged With Stealing $16M in Crypto From 100 Coinbase Users

A 23-year-old man from Brooklyn has been charged for allegedly stealing roughly $16 million in cryptocurrency from around 100 users of Coinbase through a phishing and social engineering scam, according to prosecutors.

Key Takeaways:

A Brooklyn resident is accused of stealing approximately $16 million in crypto by impersonating a Coinbase employee.
The alleged scheme was based on social engineering tactics, with laundered funds funneled through mixers, swaps, and cryptocurrency gambling platforms.
Authorities have seized certain assets, set bail at $500,000, and are actively working to recover more stolen funds.

According to the Brooklyn District Attorney’s Office, Ronald Spektor posed as a Coinbase representative and reached out to victims, claiming that their digital assets were in jeopardy. He allegedly pressured the users into transferring their cryptocurrency to wallets that he controlled under this pretense.

Alleged Crypto Scammer Used Panic-Inducing Tactics on Victims

Prosecutors noted that Spektor operated his scheme online under the alias "lolimfeelingevil," employing basic social engineering techniques rather than advanced technical tricks.

Victims were warned that their funds were at risk of being stolen by hackers unless they took immediate action, a tactic that authorities believe effectively bypassed skepticism and provoked hasty, panic-driven decisions.

Once the cryptocurrency was sent, Spektor reportedly attempted to hide the origins of the funds by channeling assets through cryptocurrency mixers, token-swapping services, and crypto gambling platforms. Investigators stated that these methods were designed to complicate recovery efforts and to obscure the sources of the stolen funds.

Spektor was arraigned on Friday, facing 31 charges including first-degree grand larceny, first-degree money laundering, and participating in a fraudulent scheme. These charges stem from a year-long investigation launched by the Brooklyn District Attorney’s Office.

As part of this investigation, authorities seized around $105,000 in cash and approximately $400,000 in digital assets. Prosecutors indicated that they are still working to recover additional funds believed to be associated with the alleged scam.

Investigators also cited evidence from Spektor’s online activity. He reportedly “openly bragged about his heists” in a Telegram channel called "Blockchain enemies." In messages that were recovered, Spektor claimed to have lost $6 million in cryptocurrency through gambling, providing insights into how the stolen assets may have been managed post-theft.

Spektor reportedly lives with his father in Sheepshead Bay, Brooklyn. A judge established bail at $500,000, according to ABC7 New York, while also denying a request for Spektor’s father to post bond due to concerns regarding the funds' origins.

One victim reportedly reached out to blockchain investigator ZachXBT, who last year published an extensive investigation into the alleged scam. In that report, the individual claimed to have lost $6 million.

Ongoing Security Concerns for Coinbase After Major Data Breach

This case emerges as Coinbase faces increased scrutiny over the security of its platform. Earlier this year, the cryptocurrency exchange disclosed a significant data breach affecting nearly 70,000 users, which resulted in estimated damages of around $400 million.

In response, Coinbase stated that it reimbursed the affected customers and strengthened its internal security measures following the incident. Additionally, Coinbase has cooperated closely with the Brooklyn District Attorney’s Office and its Virtual Currency Unit throughout the investigation.

In a blog post, the exchange mentioned that it helped identify both the suspect and the victims, shared relevant on-chain data linked to the alleged scheme, and assisted law enforcement in tracing the stolen assets.