UK Law Enforcement and Kraken Recover $2,320,000 in Stolen Crypto
Law enforcement in the UK working to combat cross-border crimes has collaborated with Kraken, a US-based digital asset exchange, to return stolen assets to victims of crypto theft. The South East Regional Organised Crime Unit (SEROCU) reports that Wybo Wiersma from the Netherlands created a fraudulent website called iotaseed.io, generating fake seeds to control IOTA cryptocurrency.
The predetermined seed phrases allowed Wiersma to transfer tokens to various crypto trading accounts without the owners’ consent. After being found guilty of theft, Wiersma was ordered to pay £2.1 million, part of which was deducted from the £2.37 million in seized crypto assets.
Approximately £1.9 million worth of stolen assets is set to be returned to victims. However, these tokens had to be converted into Sterling (GBP) before they could be recovered by their rightful owners. Kraken played a crucial role in ensuring this process was carried out lawfully and in compliance with its FCA registration.
Earlier this year, Wiersma was sentenced to four and a half years in prison, and between 50 and 60 victims have been identified so far. Detective Inspector Rob Bryant of SEROCU’s Cyber Crime and Cryptocurrency Unit acknowledges that Kraken’s collaboration was instrumental in making this recovery possible.
Hot Take: Kraken’s Collaboration with UK Law Enforcement
The partnership between Kraken and UK law enforcement has resulted in the recovery of nearly $2.32 million worth of stolen cryptocurrency for fraud victims. This collaboration demonstrates the importance of cooperation between cryptocurrency platforms and authorities in combating cybercrime and returning stolen assets to their rightful owners.
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