Canadian Behind $48M Crypto Theft Jailed Again in US for New $1M Scam
A Hamilton man already infamous for orchestrating one of many largest crypto thefts in Canadian historical past has been sentenced to a different yr behind bars in the US for a separate $1 million rip-off.
Key Takeaways:
- The Canadian behind a report $48M crypto theft has been jailed once more in the US for a brand new $1M rip-off.
- While on bail, he ran one other scheme concentrating on 200 victims utilizing hijacked X accounts.
- US prosecutors name him a ‘serial on-line fraudster’ who exploited SIM swaps and phishing to steal crypto.
Now in his early 20s, the person, whose id stays protected underneath Canada’s Youth Criminal Justice Act, was discovered responsible of concentrating on roughly 200 people in a 2022 fraud marketing campaign whereas he was out on bail.
His prior offense was a staggering $48 million crypto heist pulled off on the age of 17 utilizing a SIM swap trick to take over American tech entrepreneur Josh Jones’ accounts.
US Prosecutors Label Canadian Hacker a ‘Serial Online Fraudster’
In court filings, US prosecutors branded him a “serial on-line fraudster” who had willingly plunged himself into cybercrime.
His authorized crew painted a distinct image, one in every of a troubled Ontario youth formed by the web, searching for validation in on-line communities.
The 2020 theft shocked authorities. He had impersonated Jones to control his telecom supplier into reassigning the SIM card tied to Jones’ cellphone.
With entry to two-factor authentication codes, he drained the entrepreneur’s pockets and laundered the funds.
A clue that led police to the teenager was his buy of the PlayStation username “God” shortly after the heist, paid for with stolen bitcoin.
The digital path led authorities to a PlayStation console in his dwelling, sealing the hyperlink.
Despite a public apology and a pledge to alter, courtroom paperwork reveal the younger man returned to fraud nearly instantly.
US attorneys say that in his launch, he and co-conspirators manipulated workers at X into giving them entry to high-profile accounts. They then promoted pretend crypto raffles, draining customers’ wallets by means of phishing websites.
7% of Canadians who reported proudly owning crypto property in 2023 used their crypto to pay a ransom, in response to a current survey by the Ontario Securities Commission.
— John Paul Koning (@jp_koning) March 19, 2024
The new wave of thefts, mixed together with his ongoing psychological well being struggles and drug use following juvenile detention, shaped the idea for his most up-to-date sentencing in Virginia.
He has been ordered to pay $320,000 in restitution and an $83,000 high-quality.
His American protection lawyer, Stuart Sears, emphasised that his consumer now understands the harm he induced. “He is painfully conscious of the errors in his judgment,” Sears wrote.
The man is anticipated to be deported to Canada after serving his US sentence.
Investor Loses $3M in Crypto Phishing Scam
As reported, a cryptocurrency investor has fallen victim to a phishing scam, shedding $3.05 million in Tether (USDT) after unknowingly signing a malicious blockchain transaction.
The loss, flagged by blockchain analytics platform Lookonchain on Wednesday, underscores the rising risk of phishing assaults concentrating on digital asset holders.
The attacker exploited a standard behavior amongst crypto customers: validating solely the primary and previous few characters of a pockets deal with whereas ignoring the center.
Crypto traders lost over $2.2 billion to hacks, scams, and breaches in the primary half of 2025, pushed largely by pockets compromises and phishing assaults, in response to CertiK’s newest safety report.
Wallet breaches alone induced $1.7 billion in losses throughout simply 34 incidents, whereas phishing scams accounted for over $410 million throughout 132 assaults.
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