Another dirty business that tarnishes the image of cryptos: and all because of 2 scammers who love to strut on Instagram.
They surely relied on the blockchain to “naturally” cover their tracks; scams are known, we can not say the same for discretion.
A few stolen emails for millions pocketed
According to the FBI, 2 Nigerien scammers were using the exchange Gemini to convert millions of dollars into Bitcoins (BTC). The 2 men who name each other Olalekan Jacob Ponle and Ramon Olorunwa Abbas, are known respectively under the pseudonyms of Mr Woodbery and Ray hushpuppi.
Ponle and her accomplice resorted to a well-known scam, the CEO fraud or type fraud Business Email Compromise ; Ponle had access to completely legitimate company email addresses.
The procedure used is generally as follows: a senior manager of the company receives an urgent email asking him to transfer funds to an account or asking him to communicate confidential information.
Discretion and the police: that’s not my problem!
The complaint concerned an address Bitcoin specific which has existed for many years, Ponle therefore did not really care to cover his tracks – a big mistake when you know the transparency of information on the blockchain.
Gemini was the favorite exchange of scammers, a rather surprising choice since Gemini is well known for its procedures KYC and its compliance with regulations.
However, on closer inspection, this choice is quite understandable: the targets of Ponle had to have access to an exchange based on USA. Ponle and Abbas were using LocalBitcoin and Huobi to collect cash; these 2 platforms have been repeatedly criticized for the laxity of their anti-fraud procedures.
The 2 scammers shamelessly paraded on their respective Instagram accounts, another mistake that no doubt allowed the FBI to infiltrate their circle and end their activities.
Well you see, the cryptos and your Bitcoin there are only used to cover criminals and criminals – I can already hear the remark of the detractors from here. The lesson to be learned: A KYC does not deter a scammer from using the service of an exchange. But, the procedure could – conditional please – help the authorities to get hold of the criminals. Still, it’s annoying to always have to show white paws because of the “nonsense” of some.
Litecoin, welcome in the Silver Age