Category: Scam

Bitfinex Hacker Razzlekhan Gets 18 Months in Jail

Summary: Heather “Razzlekhan” Morgan has been sentenced to 18 months in prison for her dirty and notorious role in laundering a massive amount of $10.8 billion from the infamous Bitfinex hack. This is the biggest crypto theft scandal to have ever existed and it’s not finally concluded with Morgan’s partner Ilya Lichtenstein receiving a five-year sentence.

A Crypto Heist Gone Wrong

Morgana and Lichtenstein stole a huge amount of BTC from Bitfinex which counts to 120,000 in 2016. The valuation of said amount of BTC at that time was $17 million but if we calculate it’s value today, BTC was skyrocketed and that amount is valued at $10.8 billion. The couple tried their best to run from the law and authorities but finally got caught up in 2022, which directly led to them pleading guilty for conspiracy and money laundering in 2023.

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The Sentence and Regret

Morgan being speculated as just a helper in the operation received 18-month of prison sentence while her partner whom is believed to be the operation’s mastermind was handed five years which is just fair considering the amount stolen. Morgan very clearly expressed shame and regret that she got involved in this work and claimed that she was only involved in laundering the amount with no clues about the hack. However, the court came to the conclusion that she still played an active role in concealing the fund which is a crime nontheless.

Sophisticated Laundering Tactics

The couple tried to hide their track of money by using crypto mixers, dark web markets and even several gold purchases but in the end authorities got the better of them and the federal investigators took all their ill-gotten assets and stated their story is a cautionary tale about how no amount of on-chain trickery can run away from the justice as the reach of justice is long and it’ll always shine upon every criminal.

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Nepal Warns Citizens Amid Rising Crypto Scam Cases

In short, Nepal’s FIU warns about rising crypto scams despite the trading ban. The ban didn’t stop criminals as they have been actively using crypto for money laundering and some fake investment schemes trap locals using social media. Plus, fear of reporting such issues worsens the issue even further, with 64% of fraud being cyber-related. But they are making progress as just recently FIU is calling for stricter monitoring, better training, and updated fraud laws.

Financial Intelligence Unit (FIU), a branch of Nepal Rastrya Bank that generally deals with monitoring and analyzing financial transactions to combat financial crimes has raised several alarms over the growing use of cryptocurrencies in cybercrimes. Firstly, trading on any crypto related token is completely banned in Nepal yet such trading is done in money laundering and other financial crime so this case goes deeper than regular crypto related crimes.

FIU Warns of Rising Crypto Fraud in Nepal

On a “Strategic Analysis Report” reported on November 18, FIU gave especial focus on increase in criminals using crypto to launder illicit funds. These fraudsters convert their illegal earnings into crypto tokens which makes it very difficult for authorities to trace and recover the money. Blockchain is supposed to be safe and not be untraceable but in its banned nationwide. Plus their ability to transfer cryptocurrency to offshore accounts seamlessly further complicates matters.

Fraudsters using crypto to lure in victims is increasing a lot lately, they run their business by running  investment schemes targeting citizens through social media and online ads. These schemes are generally eye catching and promise high returns, drawing unsuspecting victims. Plus the illegality of crypto trading makes reporting such acts publicly embarrassing for the government which has led to suppressing the news and as a result, has created even more victims.

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FIU Proposes Tighter Crypto Monitoring to Fight Fraud

FIU is pushing for tougher crypto transaction monitoring and better training for banks to spot any ongoing suspicious activity. They’re also calling for stronger teamwork between agencies and updated fraud laws. Nepal has shared its concerns globally, with South Korea even set to require businesses to report cross-border crypto transactions to the Bank of Korea.

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Crypto Launderer Pleads Guilty in $73M Scam, Faces Major Sentencing

In brief, A Chinese-American dual citizen, Daren Li, admitted his crime in California federal court on Nov. 11 for laundering proceeds from a $73 million crypto scam. He admitted to his role of being included in directing shell company accounts to hide the origins of stolen funds from unsuspecting investors.

Scheme Specifics and Cash Flow

Daren Li acknowledged that, between August 2021 and April 2024, he defrauded victims of millions of dollars by operating a cryptocurrency investment scam that included pig butchering. In order to launder the money, Li used to advise others to open bank accounts in the United States using shell corporations. The money was thereafter converted to Tether (USDT) and transferred to digital wallets under the control of the powerful individuals.. As per the court details, a single walled linked to the scam had received over $340 million which is just an absurd amount to even think of. Further more the filing said.

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Authorities Take Action

After being arrested at Atlanta airport in April, Li alongside his co-worker Yicheng Zhang, who was detained in Los Angeles were charged in May. Authorities noted that $73.6 million went swiftly and directly into accounts linked to the scheme, while $59.8 million flowed through U.S. shell companies created to further disguise the assets.

Upcoming Sentencing and Financial Penalties

Li’s sentencing has been scheduled for March 3, 2025 where he potentially faces upto 20 years in jail including about three years of supervised release and $500,000 fine. This doesn’t end the punishment because he may also be ordered to pay victims the amount they were scammed off which amounts to about $4.5 million and $73 million.

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Bengal Man Nabbed by Delhi Police for ₹2000 Cr WazirX Hack

Delhi police busted a Bengal man, SK Masud Alam in case of a maassive ₹2,000 crore WazirX hack using a fake account sold on Telegram. After the arrest, WarzirX cooperated but custody firm liminal isn’t sharing any info outside. Cops are suspecting an inside job and are investigating further to uncover more links related to this massive cyber attack.

Delhi police have successfully arrested an individual named SK Masud Alam. He is from West Bengal and had serious connections with a cyberattack on cryptocurrency exchange. The platform they were using to lure in victims was WarzirX, they used this platform to steal digital assets worth ₹2,000 crore.

Basically he ran this attack by setting up a fake account, which especially targeted WazirX’s hot wallet and attempted to breach its cold wallet. This attack was reported as one of the largest breaches in the crypto sector, drawing attention from higher ups on security vulnerabilities within the digital asset exchange.

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The main person, Alam is a resident of East Midnapore in West Bengal and was  apprehended by Delhi Police’s Special Cell following an investigation led by the Intelligence Fusion and Strategic Operations (IFSO) division. Alam created a fake WazirX account in the name of Souvik Mondal, which he later sold via Telegram to an individual named M Hasan. This account was the main one carrying out the cyber attacks. The authorities are continuing their investigation on Alam suspecting that this might be more larger network than what it seems to look like.

Liminal custody, the firm that secured WazirX’s wallets is in hot water for not helping out Delhi Police with the investigations. Despite their repeated attempts, they didn’t share any key infos which raised questions about security practices. Cops plan to dig into Liminal’s role further in a follow-up chargesheet.

South Korea Busts $230M Crypto Scam: 215 Arrested, 15,000 Victims

South Korea busted a huge $230M crypto scam, with over 15,000 victims suffered by their scam, most of the them were old people. This scheme was apparently run by a Youtuber with over 620K subs. Cops arrested him including 215 helpers, and tracked over 1400 accounts and seized $1.9M in Bitcoin. The mastermind for this was caught in Australia and the hunt for fund is still on.

South Koreans have just cracked down a massive organization that had managed to defraud over 15K investors including vulnerable older citizens , out of 325 billion won. According to a report by Gyeonggi Southern Provincial Police Agency’s Anti-Corruption and Economic Crime Investigation Unit, they have arrested 215 people associated with the scam. Among them 12 were considered higher level organizers of the plan. Every one of the suspects now face charges under South Korea’s Aggravated Punishment Act for Specific Economic Crimes.

The scam was mostly successful because of the influence of a youtuber who goes by the name “Mr. A”, he is the alleged ring-leader of this scam. He used his influence to lure in  investors with claims of quick riches, encouraging some to even sell their homes and take out loans to buy crypto assets that would supposedly yield “20 times the principal.” 

The scam was active from December 2021 to March 2023, and offered 28 different types of cryptocurrency tokens, six of which were self-created and listed on overseas exchanges to attract buyers. The scam was cruel on so many levels, victim’s personal info were also misused, many of them lost their life’s savings in this scheme. The alleged leader Mr.A ran away from South Korea and was eventually arrested in Australia.

Police reported that they found across 1444 bank accounts and seized 22 bitcoins which is worth $1.9 million, and requested court approval to confiscate approximately $34 million linked to the scam. They are now working on to get victims money returned to them and prevent further financial crimes.

Thailand Busts Illegal Bitcoin Mining Rigs; Charges Two for $280k Electricity Theft

Briefly, Two suspects were arrested by Thai authorities for allegedly stealing over $280,000 in electricity for unauthorized Bitcoin Mining. This arrest mission led to the discovery of nine illegal and unauthorized mining sites in Surat Thani province. This issue showcases a growing problem of unlicensed crypto mining in Thailand.

Details of the Crackdown

The central Investigation Bureau and the Provincial Electricity Authority on Thailand raided nine illegal, unauthorized and unlicensed mining sites after a tip from a local resident about suspicious CCTV cameras. During investigation authorities stumbled upon modified electricity meters used to bypass legal power consumption, saving operators hundreds of thousands of dollars.

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Thailand’s Stance on Crypto Mining

Bitcoin miners are considered manufacturers in Thailand and need to pay tax. However, illegal mining operations have significantly increased, with several busts in 2024 alone. Having said so, Thailand remains to attract crypto business due to its progressive approach to digital assets.

Thailand’s Growing Crypto Appeal

Thailand is globally considered as a top market by Binance, with a mind blowing 12% local crypto penetration rate. Authorities recently launched a Digital Asset Regulatory Sandox to help improve innovation in crypto service, allowing companies to operate under flexible and feasible guidelines aimed at making the country’s digital asset sector strong.

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DeltaPrime Suffers Second $4.7 Million Hack Attack

In brief, DeltaPrime which is a Crypto Broker has again suffered from a heartbreaking hack, with about $4.7 million stolen from its funds. This is second attack on the platform since September, which raises a serious question about the company’s security and operations.

DeltaPrime Targeted Again

DeltaPrime, which is a reputed decentralized protocol is backed by notable investors like Avalanche and GSR Market has faced another major security breach on Nov, 11. This security breach cause the company a devastating loss of approximately $4.7 Million. This breach included an attack on several liquidity pools on Arbitrum, with funds reportedly siphoned via a weak link in the protocol’s periphery adaptor contract.

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Analysts Confirm Break and Track Stolen Funds

Blockchain analysis at Certik confirmed the attack and found out that the amount stolen were held at a particular wallet address. After the security breach, Deltaprime accepted that both of it’s Avalanche and Arbitrum fund pool were affected, bringing total loss to $4.7 million.

Previous Incident in September

This incident isn’t the first time Deltaprime has suffered a security breach but just few months ago in September, hackers managed to get inside the network through a weak private key security which resulted in a $6 million loss. The platform is also connected to North korea’s IT personnel, which has raised a lot of questions regarding security vulnerabilities, though the flagged personnel were removed earlier this year.

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Background and Funding

Launched in January 2023. Deltaprime quickly managed to get good response from as it had managed to garner over $63 million in total value locked. The platform was supported by reputed investors like Avalanche, GSR Capital and Moonhill Capital, the protocal at first promised to provide robust security and light like efficiency. Yet, the repeated breach and repeated money stolen raise significant concerns about it’s promises.

Conclusion

With two major breached within just few months, Deltaprime is sure to face a lot of backlash on it’s security policy. Users and investors alike await the company’s response and any concrete steps to prevent future incidents.

Wiz Khalifa’s Socials Hacked in New Scam Promoting Phony WIZ Meme Coin

Summary

Famous rapper Wiz Khalifa’s socials got jacked by scammers and hyped up some crazy meme coin called WIZ on pump.fun. Crypto sleuth ZachXBT suspects this hacker might be same hacker that snatched Truth Terminal founder’s account too.

On November 4, blockchain detective ZachXBT dropped a screenshot in his Telegram channel, showing a deleted sketchy post from Wiz Khalifa’s X account which was hacked during that time. Wiz Khalifa has about 35.7 million followers, so that scam post got massive reach in a very short time resulting in some people losing money to it. ZachXBT warned followers to not blindly follow such posts quickly as there is high chance of big profiles getting hacked.

The hacker on a now deleted X post, promoted a token called $WIZ which was a pump.fun meme coin and assured users it was safe to buy by saying it was based on Solana. ZachXBT told in his group members to not buy Wiz Khalifa token on pump fun and further claimed this might be the same hacker that hacked Andy Ayrey the other day.

As reported by DEX Screener, the WIZ meme coin boomed by almost 2000%. This led it to hit over $2.5 million in market cap within just 15 minutes after launch. But things didn’t remain this bright for long as early holders quickly dumped loads of the token and the market cap crashed below $28,000 within an hour. This is always what usually happens in such sketchy tokens. As the time of writing, WIZ went down by 90% in the last 24 hour and its market cap is sitting at a tiny $7,900.

Since the meme coin posts got wiped away, Wiz’s account has gone silent. There are no updates on whether his account even got recovered or not. While the hacker’s ID is still missing ZachXBT seems very convinced that its same person that hacked Truth Terminal developer Andy Ayrey’s account recently.

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AI-Powered Phishing Scams Take Aim at Crypto Users

Summary

Kaspersky’s AI Research Center says that cybercriminals are using Large Language Models (LLMs) to pump out tons of phishing and scam content. Their goal is simply to produce fake websites, especially to steal from crypto investors and wallet users. But there’s a trick that helps us differ these sites from actual legit ones.

Experts from Kaspersky’s AI Research Center claims to have discovered an increase in the use of Large Language Models used by cybercriminals, in order to scam people using large-scale scam and phishing attacks. They say these websites are created in bulks and every single one of them is specifically designed to lure the investors into their scam. But there’s a kick: every such website contains a distinguishable artifacts such as AI-specific phrases which makes them a bit easier to avoid. Reportedly, most of these phishing websites target users of cryptocurrency exchanges and wallets.

A big giveaway of such AI created sites is using phrases such as “As an AI language model…” and refusal to do certain tasks like, acting like a search engine or logging into sites, which are showing up on fake crypto sites targeting KuCoin, Gemini, and Exodus users. Another major giveaway is using phrases like “While I can’t do exactly what you want, I can try something similar,” this feels really obvious machine-made style of talk. According to Vladislav Tushkanov, threat actors can now pump out lots of these scam pages quickly with AI, filling entire sites, text, and even hidden tags with these tells.

But lately, cybercriminals have started to throw in non-standard symbols to dodge detection. Tushkanov further said that these AI powered scams are evolving rapidly, there are even records of AI writing malware scripts on their own, one way to defend is to catch AI made mistakes but even so, advanced security tools are must use. To stay safe, always double check links, type site addresses manually and only use modern security software.

Austria Sentences Five in Landmark $21.6M Crypto Scam Trial

Summary

Five individuals were sentenced to prison for their roles in a Ponzi-like scheme. This incident occured in Austria, where the sentenced individuals involved themselves in the EXW-Token scam that defrauded over 40,000 investors out of €20 million ($21.6 million).

Landmark Crypto Fraud Trial Ends in Sentencing

Austria’s largest crypto fraud case to date, took a year-long trial and 60 days of hearings. The Klagenfurt Regional Court sentenced five individuals involved in the EXW-token scam. The individuals were found guilty of running a Ponzi-like scheme, persuading investors with promises of daily returns through fraudulent ventures,including the EXW Wallet and fictitious investments in real estate and rental cars.This fraudulent scheme had already collapsed in 2020 but briefly managed to resurface under the name Exchange World.

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Lavish Spending Funded by Fraud

Court recordings reveal that the defendants were using the stolen funds to facilitate their lavish lifestyles; luxury cars, private jets and mansions. Out of all the stolen goods some of the stolen goods was allegedly transfered from Dubai to Austria.Two of the defendants received five-year sentences, with others handed 30-month and 18-month suspended sentences. EXW Wallet co-founders Benjamin Herzog and Pirmin Troger had already pleaded guilty and received five-year sentences.

A Rising Global Threat

The EXW-Token case highlights a troubling increase in crypto scams globally. France recently began its own $30 million crypto fraud trial, while the U.S. sentenced a Ponzi promoter to prison. With crypto-related frauds surging, authorities worldwide are cracking down to protect investors and maintain trust in the cryptocurrency market.

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