Hacker Sentenced to 3.5 Years for $900,000 Coinbase Login Scam

A computer hacker from the United Kingdom, who compromised over 500 Coinbase accounts through phishing websites in 2018 and 2019, has been sentenced to three and a half years in prison. Elliot Gunton, who was 17 and 18 years old at the time of the offenses, pleaded guilty to conspiracy to commit fraud outside the UK and money laundering. He was involved in stealing more than $900,000 from these accounts.

Gunton executed the scam by directing users to a fake login page that mimicked Coinbase’s actual website. Once victims entered their credentials, Gunton was able to access their accounts and siphon off their funds.

Judge Alice Robinson of Norwich Crown Court described the offense as “highly sophisticated,” noting that it required considerable planning and technical skill. The complexity of the scheme, coupled with the significant financial impact, underscores the severity of the crime.

This is not Gunton’s first brush with the law. In 2019, he received a 20-month prison sentence for stealing personal data from TalkTalk customers and trading it for hundreds of thousands of dollars in cryptocurrency. However, he avoided jail time by completing a 12-month rehabilitation order. Additionally, he was ordered to repay £407,359, equivalent to $524,700, following a separate hacking incident involving high-profile Instagram accounts.

U.S. Court Orders $31 Million Reimbursement for Crypto Fraud

In the United States, a federal court has ordered Abner Alejandro Tinoco and his company, Kikit and Mess Investments, to pay over $31 million in restitution and penalties. Tinoco and his firm were found guilty of running fraudulent cryptocurrency and foreign currency schemes.

Tinoco is accused of operating a Ponzi-like scheme, where he took investment funds from clients and paid out “bogus” profits to others. The real funds were used to finance Tinoco’s lavish lifestyle, including private jet travel and luxury real estate.

The court’s ruling includes:

• Restitution: $6.2 million to nearly 200 defrauded victims.
• Disgorgement: $6.2 million to return ill-gotten gains.
• Civil Monetary Penalty: $18.8 million, approximately three times the amount obtained through fraud.

The fraudulent activities began in September 2020, with a total loss of $7.2 million before enforcement actions were taken in the following year.

Warning About Potentially Fraudulent Crypto Platform

The Washington State Department of Financial Institutions (DFI) has issued a warning regarding a potentially fraudulent cryptocurrency platform, Vims.One. The platform, which is now unavailable, was linked to a “nonprofit organization” named the Miami Foundation.

A complainant reported that Vims.One promised returns of over 100% twice a week. Investors were asked to pay a 5% commission to withdraw their funds. Although the victim managed to recover their money, the DFI urges caution with similar investment offers.

The DFI’s advice to consumers is to exercise extreme caution when approached with investment or financial service solicitations.

Korean Authorities Charge Alleged Fake Crypto Mining Fraudster

In Korea, a man known only as “Mr. A” has been arrested and charged with defrauding over $1.3 million (1.8 billion Korean won) through a fake crypto-mining operation. Mr. A allegedly ran the fraudulent business from September 2021 to August 2023.

Mr. A promised investors high monthly returns of 3-8% without actually conducting any cryptocurrency mining. The scheme resembled a Ponzi scheme, using new investment funds to pay returns to earlier investors, creating an illusion of profitability.

This roundup highlights recent significant cases in the world of cryptocurrency fraud, demonstrating the diverse and complex nature of these crimes and the ongoing efforts of authorities to combat them.