Man sentenced to 12 years for $16M Coinbase customer support scam

According to CryptoSlate, a Brooklyn man received a four-to-12-year prison sentence for orchestrating a fake customer support operation that stole nearly $16 million from about 100 Coinbase users across the United States. Reporting by CryptoSlate notes that Ronald Spektor, 23, pleaded guilty to a 31-count indictment that included first-degree money laundering, grand larceny, and criminal possession of stolen property.

Prosecutors stated that Spektor posed as a Coinbase representative and falsely warned targets that hackers threatened their accounts. Victims were then tricked into transferring their digital assets into wallets secretly controlled by Spektor. Some individuals lost more than $1 million. To launder the funds, Spektor moved the crypto through repeated swaps, exchanges, and mixing services, converting tokens and utilizing gambling platforms and online storefronts.

CryptoSlate reported that the court ordered Spektor to pay nearly $16 million in restitution and forfeit over $500,000 in cash, cryptocurrency, and personal property. However, prosecutors did not disclose how much stolen crypto victims will ultimately recover. Coinbase advises customers that official support staff will never request fund transfers to new wallets, seed phrase disclosures, or passwords and authentication codes.