Cryptocurrency scams have always been successful ever since this industry was created. Even in 2019, there are multiple successful scams which cost people a lot of good money. In Israel, one scammer successfully stole $1.7m spanning various cryptocurrencies by primarily targeting users in Western Europe.
An Israel hacker alegedly stole NIS 6.1 million ($1.75 million) in digital currencies from foreign citizens, including Belgians, Dutch, and Germans. The currencies stolen included BTC, Ethereum, and Dash, according to an indictment filed at the Tel Aviv District Court against Tel Aviv resident Eliyahu Gigi, 31, for offenses under the Computers Law, theft, fraud, aggravated counterfeiting, use of a forged document, perjury, money laundering, and offenses under the Income Tax Ordinance.
According to the report, Gigi had been operating a “criminal enterprise” spanning a number of websites that allowed him to conduct his criminal activity and swindle his victims out of their money.
The perp used these websites to distribute software that infected his victim’s computers, and stole cryptocurrencies. The report hasn’t stated how software managed to do this, though.
However, one website that the perp was running claimed to offer cryptocurrency wallet software. When the user filled out their username and password, the sensitive data was sent directly to Gigi. He then used these details to steal “hundreds of cryptocurrencies from digital wallets all over the world,” the report reads.
The culprit in question has been arrested and is now awaiting trial. He faces charges including fraud, theft, money laundering, and violation of income tax regulations. This latter part won’t come as too big of a surprise, primarily because criminals won’t report fraudulent earnings to their local tax agency. Other charges may be added to this list as the trial draws near, as the investigators are still collecting evidence against this mastermind.
The digital currencies market has an aggregate value of $257 billion. Its average daily trading turnover is estimated at $88 billion in thousands of trading theaters around the world. Ever since 2009, the leading digital currency has been bitcoin.