$243 Million Crypto Heist Leads to Arrests in Los Angeles

Los Angeles law enforcement has arrested two individuals involved in a $243 million social engineering attack targeting a single Genesis creditor.

Details of the Social Engineering Attack

In August, scammers Malone Iam, Veer Chetal, and Jeandiel Serrano deceived a Genesis Global creditor by impersonating a Gemini customer support agent. This scheme led to the theft of nearly $250 million. Crypto sleuth ZachXBT spearheaded the investigation, uncovering multiple videos showcasing the trio celebrating their successful heist.

“I’m gonna spazz,” exclaimed one of the perpetrators in a video after receiving approximately 4,064 Bitcoin from the victim.

The stolen funds were distributed across more than a dozen exchanges and on-chain trading platforms, including Binance, eXch, and Thorswap. The hackers further complicated the trail by converting the stolen Bitcoin into other cryptocurrencies such as Litecoin, Ethereum, and Monero.

Investigation and Arrests

Following the heist, the hackers indulged in lavish spending, frequenting clubs in Los Angeles and purchasing luxury cars in Miami. ZachXBT, alongside blockchain forensic specialists CF Investigators and ZeroShadow, collaborated with the Binance Security Team, leading to the freezing of $9 million in stolen assets.

The victim managed to recover around $500,000 and worked closely with experts throughout the investigation. On September 18, Iam and Serrano were arrested in Los Angeles. Large on-chain transactions during the arrests suggest that additional funds were seized by local authorities. At this time, Veer Chetal, the third member of the group, remains at large.

Genesis and Its Financial Struggles

Genesis, a subsidiary of Digital Currency Group, owed $4 billion to 100,000 creditors, with approximately $10 billion in liabilities. The crypto lender was one of several companies affected by the collapse of FTX and Three Arrows Capital, following the implosion of Do Kwon’s Terraform blockchain ecosystem.

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