Brooklyn Man Indicted in $16M Crypto Phishing Scheme Targeting 100 Users

Source: CoinEdition Original Title: Brooklyn Man Indicted in $16M Coinbase Phishing Scheme Targeting 100 Users Original Link: https://coinedition.com/brooklyn-man-indicted-in-16-million-coinbase-phishing-scheme-targeting-100-users/ A 23-year-old Brooklyn man has been charged with orchestrating a massive crypto phishing and social engineering scheme that defrauded nearly 100 users across the United States of almost $16 million.

Brooklyn District Attorney Eric Gonzalez announced the indictment on Friday. It alleges that the defendant, Ronald Spektor of Sheepshead Bay, posed as a representative of a major crypto exchange to convince victims that their accounts were under threat and needed to be transferred to new wallets controlled by him.

Scam Targeted 100 Victims Nationwide

The scheme involved contacting users via phone calls, emails, and spoofed two-factor authentication alerts. Believing they were communicating with legitimate exchange staff, victims transferred their crypto assets to Spektor-controlled wallets.

Victims spread across the country, with reported losses including:

• Over $1 million from a California resident
• Approximately $900,000 from a Virginia resident
• $53,150 from a Pennsylvania man
• $38,750 from a Maryland woman

The investigation revealed that the stolen funds were laundered through crypto exchanges, gambling platforms, and digital asset purchases. About $105,000 in cash and $400,000 in crypto have been recovered so far, with additional assets still being traced.

The DA’s Virtual Currency Unit noted that the defendant used online forums, Telegram channels, and Discord to brag about his activities and recruit others to assist in scams.

Spektor allegedly used the handle @lolimfeelingevil on Telegram, operating a channel called “Blockchain Enemies” to boast about his thefts and gambling losses, and to instruct others on social engineering tactics.

Legal Action and Arrest

Spektor was arraigned on Friday before Supreme Court Justice Danny Chun on a 31-count indictment. It includes first-degree grand larceny, first-degree money laundering, and scheme to defraud. He is currently being held on bail.

District Attorney Gonzalez highlighted the seriousness of crypto fraud, stating:

“We will investigate offenders using the latest technology, freeze their assets whenever possible, and assist the victims.”

The Chief Legal Officer of the major crypto exchange praised the DA’s office for its work. He noted the company’s cooperation in identifying the perpetrator, providing evidence, and tracing stolen funds.

Tips to Avoid Cryptocurrency Scams

The DA’s office reminded the public to:

• Never transfer crypto based on unsolicited calls or emails
• Verify communications using official in-app support channels
• Use strong account protections like two-factor authentication or security keys
• Avoid acting under pressure and verify information independently

The DA’s Virtual Currency Unit investigated the case with assistance from major crypto platforms, Flashpoint, and multiple law enforcement and digital forensics teams.