A multi-million-dollar cryptocurrency scam has led to the arrest of Canadian teenagers who are charged with stealing over $4 million from an American man by impersonating Coinbase support, according to a report by CBC.Â
The teenagers, using the pseudonyms “Felon” and “Gaze”, spearheaded a ‘spear phishing’ campaign, a targeted form of phishing, wherein they pretended to be Coinbase support staff.
It is believed that this fraudulent act allowed them to gain control over an estimated $13.4 million worth of cryptocurrency.
They were arrested with possession of over $5,000 and property obtained by crime. This case has gained international attention as the victim of this elaborate scam is a U.S. citizen, leading to the involvement of the FBI and the Electronic Crimes Task Force (ECTF) from the U.S.
This is not the first instance where Coinbase has been impersonated. Just last year, in 2021, a phishing attack on Coinbase affected approximately 6,000 users. Furthermore, a complaint was lodged against the cryptocurrency platform earlier this year, alleging their failure to prevent such scams.
The swindled funds were not only used for personal enrichment but were also spent on purchasing high-profile social media accounts, showcasing the teens’ audacious spending patterns.
The incident underscores the inherent vulnerabilities in the cryptocurrency market and the imperative for rigorous security protocols. As the investigation proceeds, it serves as a stark reminder for cryptocurrency users to be vigilant and to ensure that their assets are safeguarded against potential scams.
