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NewsBusiness

Canadian Teens Charged With Nabbing $4.2M in Bitcoin, Ethereum by Impersonating Coinbase Support

The FBI and the U.S. Secret Service Electronic Crimes Task Force began investigating the perpetrators in June.




By Tim Hakki

Jul 5, 2023
2 min read


Bitcoin and crime. Image: Shutterstock

Two seventeen-year-old boys from Hamilton, Canada, have been arrested and charged with theft and possession of criminally-obtained property.

The two allegedly defrauded a U.S. man of $4.2 million in Bitcoin and Ethereum in a scam known as a “spear phishing” attack.

Spear phishing is a type of phishing attack that targets individuals, as opposed to phishing, which targets the masses. A spear-phishing attack presents itself as a communication from a trusted source asking the victim for information that can be used to compromise their accounts.

In this case, the boys pretended to be Coinbase Support to hijack their victim’s crypto portfolio.


BTC
+18.81%$30,446.50

Some of the stolen money was reportedly used to purchase the Instagram handle “@Zombie,” a sought-after username among gamers. The teens also used the aliases “Gaze” and “Felon.”

According to a local report, the investigation began last month and was coordinated by the FBI and the United States Secret Service Electronic Crimes Task Force.

When the boys were arrested, they had $13.4 million in cryptocurrency.
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