New York authorities have unveiled a major cryptocurrency fraud case after prosecutors alleged that a sophisticated impersonation scheme siphoned nearly $16 million from Coinbase users across the United States.
The Brooklyn District Attorney’s Office confirmed on December 19 that a Brooklyn resident had been indicted for allegedly orchestrating a long-running phishing and social engineering operation targeting crypto investors nationwide.
Prosecutors said the alleged scheme relied on impersonating Coinbase security staff to exploit user trust and create panic around supposed account breaches.
This indictment charges the defendant of operating a long-running social engineering scam that amounted to a digital robbery against scores of crypto investors across the country, Eric Gonzalez said.
Authorities claimed victims were contacted through spoofed phone calls, text messages and emails that used fake security alerts and the names of supposed Coinbase employees.
Investigators alleged that users were persuaded their accounts were under immediate threat and instructed to move funds to newly created wallets advertised as secure.
Prosecutors said those wallets were secretly controlled by the suspect, allowing the rapid transfer and emptying of victim accounts once funds were received.
According to the district attorney’s office, the stolen assets were then routed through multiple cryptocurrency exchanges, swapping services and mixing tools to obscure their origin.
Officials added that some funds also passed through gambling platforms and online storefronts in an effort to further disguise transaction trails.
Authorities disclosed that approximately $105,000 in cash and around $400,000 in cryptocurrency had already been seized during the investigation.
Prosecutors noted that efforts are ongoing to access and recover additional digital assets believed to be linked to the alleged fraud.
Coinbase confirmed that it worked closely with investigators to identify the suspect and trace affected customer accounts.
We’re grateful to District Attorney Gonzalez and the Brooklyn District Attorney’s Office for their partnership and relentless work to protect victims, Paul Grewal said.
We’re committed to protecting our customers and working hand-in-hand with law enforcement to hold scammers accountable and help bring justice for those they harm, Grewal said.
The defendant was identified as 23-year-old Ronald Spektor of Sheepshead Bay, Brooklyn, who was arraigned before Supreme Court Justice Danny Chun.
Court records show Spektor faces a 31-count indictment including charges of first-degree grand larceny, first-degree money laundering and scheme to defraud.
Prosecutors alleged that around 100 victims nationwide reported losses ranging from tens of thousands of dollars to more than $1 million each.
Investigators said blockchain analysis, transaction records and digital forensic evidence linked wallets used in the scheme to the defendant’s home internet connection.
The district attorney’s office warned that legitimate cryptocurrency companies never ask customers to transfer funds to so-called “safe wallets” as part of security checks.