Even digital assets face physical theft risk as $3.5M crime spree highlights

Even digital assets face physical theft risk as $3.5M crime spree highlights
Violent home invasions and even kidnap were used by criminals.
SEP 16, 2024

Usually when we hear about the theft of digital assets they involve online hacking or phishing attacks, often from thousands of miles from a victim’s home.

However, a Florida court has sentenced a man to 47 years in jail for his involvement in a string of cryptocurrency thefts that stole $3.5 million from victims. A total of 12 men have now been sentenced for their part in the crimes with

The case serves as a warning to crypto investors and their financial advisors that there can be a very physical aspect to the theft of digital assets, with the conspirators using SIM swapping and violent home invasions to access their victims’ assets.

Court documents and trial evidence revealed that the men held victims at gunpoint, assaulted them, and bound them with plastic cable ties.

Having gained control of victims’ mobile phones by using social media or phishing to gain a new SIM card from their carriers, the fraudsters were able to access digital asset accounts and transfer cryptocurrency from exchanges.

Later, they also used home invasions where victims were often beaten and tortured, and on occasion kidnapped. The men gained access to computers allowing them to steal digital assets and cash and other valuables were also stolen.

“Throughout the conspiracy, the conspirators communicated via an encrypted messaging application to plan their crimes. They identified targets and discussed how to gain entry to homes, the tools required to carry out the crimes, the technical aspects of cryptocurrency, and the patterns of life of their targets. They also circulated pictures of their targets and their targets’ homes,” said the US Justice Department’s Office of Public Affairs.

 

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management