Brooklyn Man Sentenced to Up to 12 Years for $16M Coinbase Phishing Scheme

According to BlockchainReporter, 23-year-old Ronald Spektor of Brooklyn was sentenced on Wednesday to four to 12 years in prison. The Brooklyn District Attorney's Office announced the sentence following Spektor's guilty plea on September 2 to all 31 counts against him, which included first-degree money laundering, grand larceny, and criminal possession of stolen property.

Over roughly a year, Spektor posed as a Coinbase representative, contacting about 100 victims nationwide and convincing them to move their assets to a new wallet under the guise of protecting them from a hacker. Spektor then emptied the accounts, laundering the cryptocurrency through mixing services and gambling platforms. Investigators traced approximately $15.94 million in losses.

Authorities identified Spektor using blockchain analysis, digital forensics, and search warrants. Prosecutors noted that Spektor used the Telegram handle @lolimfeelingevil and ran a channel named "Blockchain enemies" where he bragged about the thefts. In addition to the prison term, the judge ordered Spektor to forfeit over $500,000 in assets and pay nearly $16 million in restitution.