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.