- US authorities have arrested two suspects involved in a $243 million cryptocurrency theft targeting a Genesis creditor
- The arrests followed an investigation led by blockchain investigator ZachXBT, with over $9 million of the stolen funds already frozen
- The criminals used sophisticated social engineering techniques to trick the victim into transferring the funds
Two individuals have been arrested for their involvement in a $243 million cryptocurrency heist that targeted a creditor of the now-defunct trading firm Genesis. The August 19 incident saw the vast sum stolen from the recipient, $9 million of which has since been frozen, with investigators actively working on recovering more assets. Blockchain analyst ZachXBT played a crucial role in tracing the funds, which had been laundered through multiple cryptocurrency exchanges.
Crooks Posed as Google and Gemini Representatives
The heist began when the criminals used advanced social engineering techniques to carry out the theft, posing as representatives from both Google and Gemini. They convinced the victim to reset their two-factor authentication (2FA) and subsequently transfer funds to a compromised wallet. After the funds were moved, they were quickly split and sent to various cryptocurrency wallets across more than 15 different exchanges.
Investigators, including ZachXBT, Binance Security, and others, discovered that part of the stolen funds was used to purchase luxury goods, including cars, watches, and designer clothing. The culprits were linked to the crime when one of them mistakenly shared an address associated with these luxury purchases, which was described by ZachXBT as “a key piece of evidence”:
1/ An investigation into how Greavys (Malone Iam), Wiz (Veer Chetal), and Box (Jeandiel Serrano) stole $243M from a single person last month in a highly sophisticated social engineering attack and my efforts which have helped lead to multiple arrests and millions frozen. pic.twitter.com/dcY1e9xsPd
— ZachXBT (@zachxbt) September 19, 2024
Following these discoveries, authorities were able to freeze millions of dollars, with a portion already returned to the victim.
The FBI and local law enforcement were involved in the raids, which took place in both Miami and Los Angeles, leading to the arrest of two suspects. A report for 7NewsMiami said that Neighbors in the area said they were caught off-guard by “what sounded flashbang grenades” followed by the SWAT raid.
