- A UK hacker faces prison for his Coinbase dummy website scam, an El Paso man’s alleged crypto “Ponzi” funded his lavish lifestyle, and Washington DFI flags the latest potential crypto fraud.
A United Kingdom computer hacker who compromised over 500 Coinbase accounts in 2018 and 2019 via phishing website scam has been sentenced to three and a half years in prison for his role in the scam.
According to multiple news outlets, Elliot Gunton pleaded guilty to conspiracy to commit fraud outside the UK and money laundering. He and others stole more than $900,000 from more than 500 Coinbase accounts when he was just 17 and 18 years of age, according to a July 27 report by North Norfolk News.
Gunton accessed the Coinbase accounts by directing online log-ins to a dummy website, the court was told.
“This was highly sophisticated offending that involved significant planning and technical expertise,” Judge Alice Robinson of the Norwich Crown Court said, according to a July 27 report by Norwich Evening News.
Intelligent Norwich hacker Elliott Gunton jailed for 42 months in crypto scam
The 24-year-old committed the offences when he was aged 17 and 18
He and fellow hackers accessed the Coinbase accounts of more than 500 crypto users by directing online logins to dummy website
Gunton… pic.twitter.com/IHyfY9Z7wm
— Ryan (@breakingryan1) July 26, 2024
It isn’t the first time he’s captured headlines for the wrong reasons, either.
Gunton was initially given a 20-month prison sentence in 2019 for stealing the personal data of TalkTalk customers in exchange for hundreds of thousands of dollars in crypto. However, he reportedly managed to avoid jail time by completing a 12-month rehabilitation order.
He was also ordered to pay back 407,359 British pounds — now worth $524,700 — after hacking several high-profile Instagram accounts.
US Court Orders Crypto Fraudsters To Pay Back $31M
Meanwhile, in the United States, a federal court has ordered Abner Alejandro Tinoco and his firm, Kikit and Mess Investments, to pay over $31 million after running fraudulent cryptocurrency and foreign currency schemes.
Tinoco is accused of accepting investment funds from clients and paying “bogus” profits to other clients, akin to a “Ponzi scheme.”
He misled victims into thinking their funds were being invested — instead; the funds were used to pay for Tinoco’s lavish lifestyle, which included travel costs for chartering a private jet, a luxury mansion and other real estate.
Tinoco, Kikit and Mess have been ordered to pay $6.2 million in restitution to nearly 200 defrauded victims, $6.2 million in disgorgement — the legally mandated repayment of ill-gotten gains — and an $18.8 million civil monetary penalty.
The civil monetary penalty is approximately three times the amount of unlawful funds received from their fraudulent cryptocurrency and forex schemes, the United States commodities regulator noted in its July 26 statement.
The fraudulent schemes commenced in September 2020, scrapping a total of $7.2 million from victims until the Commodity Futures Trading Commission filed an enforcement action against Tinoco and Kikit and Mess about 12 months later.
Washington Regulator Flags Vims.One In Fraud Alert
The Washington State Department of Financial Institutions has flagged a potentially fraudulent crypto platform — advising investors to steer clear.
The DFI received a complaint from an investor who claimed to have deposited crypto funds on the purported investment platform Vims.One, which is no longer available.
DFI said Vims.One was linked to a “nonprofit organization” called the Miami Foundation.
The victim claims they were lured into a WhatsApp chat with facilitators “Mark” and “Alice,” who promised investors that they would see more than a 100% return twice a week.
Investors were asked to pay a 5% commission to withdraw funds from the platform, but the victim that DFI spoke to was able to recoup the funds.
The DFI said, “[We urge] consumers to exercise extreme caution before responding to any solicitation offering investment or financial services.”
Korean Authorities Charge Alleged Fake Crypto Mining Fraudster
A man in Korea has been arrested and charged by authorities for stealing more than $1.3 million (1.8 billion Korean won) by operating a fake crypto-mining business.
The alleged perpetrator, “Mr. A,” promised victims would see “high profits,” according to a July 26 report by E Asia Economy. He has been charged with fraud.
Mr. A supposedly ran the fake business between September 2021 to August 2023.
“Even though Mr. A did not conduct any cryptocurrency business at all, he promised to return high profits of 3-8% per month,” E Asia Economy said.
Mr. A reportedly used new investment money to pay profits to early investors, making the venture appear profitable, similar to a Ponzi scheme.
