Adam Davis, 47, pleaded guilty to wire fraud on January 25. From January 2014 to May 2021, prosecutors say, the man interacted with a woman who invested about $395,000 in cryptocurrency during that time. The investor approached Davis to help with the investment and provided direct access to her digital wallets.
Given that the price of Bitcoin and other cryptocurrencies had risen over time, Davis began stealing assets from the victim and transferring them to his own cryptocurrency addresses. The stolen funds were valued at approximately $2.1 million at the time of the crime. However, in 2021, when the woman discovered the deception, the value of the stolen crypto assets exceeded $8 million. By this point, the defendant had already cashed out most of the stolen cryptocurrency, spending the money on personal expenses.
In addition to the prison term, District Judge Wendy Beetlestone ordered the victim to pay more than $2.1 million in compensation for the theft of cryptocurrency.
“It doesn’t matter what was stolen: cryptocurrency or cash. We are talking about the theft of other people’s funds, and this crime will definitely be punished. The prosecutor’s office will hold accountable all cybercriminals who caused harm to people,” said prosecutor Jacqueline Romero in court.
In May, a New York court sentenced a former Deutsche Bank employee to 41 months in prison for cryptocurrency fraud. The clerk was also ordered to pay $1.5 million to affected investors.
Source: Bits
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