Miami Crew Leader Receives 63-Month Prison Sentence for Crypto and Bank Fraud
The U.S. Department of Justice (DOJ) has recently announced that a Miami crew leader has been sentenced to 63 months in prison for engaging in crypto and bank fraud. The individual, Esteban Cabrera Da Corte, was involved in a scheme that used stolen identities to steal $4 million from a cryptocurrency exchange.
According to the DOJ, Da Corte, also known as “Steban,” will have to pay restitution of $3.57 million and forfeit $1.2 million as part of the sentence. The department emphasized its commitment to prosecuting cryptocurrency scammers and money launderers.
The Scheme
Da Corte and his co-conspirators created fake accounts using stolen personal information and counterfeit identification documents. They then used these accounts to purchase cryptocurrency from a leading exchange. After linking the exchange accounts to their controlled bank accounts, they made cash deposits using ATMs.
Once they acquired the cryptocurrency, they swiftly transferred it to privately controlled wallets. They would then contact U.S. banks claiming unauthorized payments, receiving fiat refunds while keeping the stolen digital assets.
This operation resulted in fraudulent reversals exceeding $4 million for U.S. banks and a loss of over $3.5 million worth of cryptocurrency for the targeted exchange.
Trouble at Centralized Exchanges
Binance founder Changpeng Zhao faced charges from the DOJ last month, resulting in him stepping down as CEO and agreeing to pay $4 billion in fines for anti-money laundering violations.
Centralized exchanges have experienced various hacks and scams in recent times, with experts suggesting that hackers may be shifting their focus towards centralized services due to their larger workforces and susceptibility to social engineering attacks.
In a similar incident, the Justin Sun-owned crypto exchange HTX lost over $100 million to hackers. Sun has assured affected users that their funds will be reimbursed.
Hot Take: Increasing Scrutiny on Crypto Fraud
The recent sentencing of the Miami crew leader highlights the growing efforts of law enforcement agencies to crack down on cryptocurrency fraud. With the popularity and value of cryptocurrencies on the rise, criminals are finding new ways to exploit vulnerabilities in the system.
As a crypto investor, it is crucial to remain vigilant and exercise caution when engaging in transactions. The decentralized nature of cryptocurrencies may offer benefits, but it also means that there is no central authority to reverse fraudulent transactions.
Centralized exchanges, in particular, have become targets for hackers due to their larger workforces and potential security weaknesses. It is essential for these platforms to prioritize robust security measures and compliance with anti-money laundering regulations.
Overall, this case serves as a reminder that law enforcement agencies are actively pursuing individuals involved in crypto-related crimes. To protect yourself and your assets, it is important to stay informed about the latest security threats and follow best practices for secure cryptocurrency transactions.
By
By
By
By