The US National Security Investigation Service (HSI) has detained three residents of Miami on suspicion of fraud with cryptocurrencies and theft of other people’s personal data.
The U.S. Department of Justice charged Esteban Cabrera da Corte, Luis Hernandez Gonzalez, and Asdrubal Ramirez Meza with cryptocurrency fraud. Using a stolen ID, the men bought digital assets on a trading platform and then claimed the transactions were not authorized in order to receive a refund.
“The Miami crime ring used stolen identities to buy cryptocurrencies and then demanded a refund by challenging the transactions and leading U.S. banks to believe they themselves were victims of the scam. Thanks to the efforts of the HSI Task Force, their scam was exposed and they are now facing serious federal charges,” said U.S. Attorney Damian Williams.
In total, a group of scammers stole $4 million. The largest losses were incurred by the cryptocurrency exchange, which lost $3.5 million. The defendants face up to 30 years in prison for the crime. HSI has pledged to work with the U.S. Secret Service and partners in the Southern District of New York to continue to track traces of illegal transactions and warn of any future forms of crypto fraud.
Last week, the US Department of Justice reported that the alleged operator of the Ryuk ransomware virus, Denis Dubnikov, had been extradited to the US.