In Brief:
- A Coinbase user lost 200 Bitcoin in a scam.
- As per the Investigators, an unknown person sent a notification to a Coinbase user after a 200 bitcoin purchase.
- A warrant for 10.2 bitcoin held in a Huobi Global wallet has been filed by Federal Investigators.
A federal judge this month approved a warrant to reclaim more than $600,000 in bitcoin from a Huobi Global wallet after federal investigators said it was part of an $11.6 million gain stolen from a Coinbase user account in April.
As a report suggests, this was in relation to a heist that took place in April, after a Coinbase user identified as G.R bought 200 bitcoin.
Following the purchase, a notification popped up alerting the user that their account has been locked, according to a complaint filed by the US Attorney’s Office in Los Angeles. The notification that seemed to appear from Coinbase wasn’t actually from them.
Interestingly, Coinbase has refused to comment on the matter.
After the fake notification, almost $11.6 million in crypto, about 206 bitcoin, was removed from the user’s account. Later, the Coinbase user called a phone number on the notification, thinking it would connect to a Coinbase customer service.
An “unidentified individual 1,” or “UI-1,” answered the call and asked G.R. to make a series of changes to the account, according to the complaint. Those changes included the “permission to remotely access to the account” and also “deactivating a few other notifications”.
Later, within moments, millions in Bitcoin and XLM were removed from GR’s Coinbase account.
The complaint reads, “The total value of virtual currency transferred out of the Victim Account between 2:02:40 PST and 2:12:41 PST on or about April 20, 2021, without G.R.’s authorization was approximately $11,570,138.”
According to investigators, the money was then moved by an unknown person via a series of transactions between several accounts. About 10.2 bitcoin ended up in an account with Huobi Global Exchanges.
In response to this case, the investigators filed a forfeiture notice, seeking to reclaim those bitcoins. Initially, Huobi Global didn’t respond to the request seeking additional information.
However, In early October, Judge Dolly M. Gee approved the warrant request, and a notice was posted, if in case anyone other than G.R. wanted to claim ownership of the 10.2 bitcoin.
Consequently, Thom Mrozek, director of media relations for the US Attorney’s Office in Los Angeles informed, “Huobi has agreed to maintain a freeze on the funds pending resolution of the forfeiture action.”
However, the court noted that it is unclear how the fraudster got hold of the Coinbase transaction data and was able to coordinate the attack.
Mrozek further informed, “No person has been charged or arrested in connection with the crime.”
It is worth noting that in an effort to combat such similar scams, the US Federal Bureau Investigation had recently joined South African company Mirror Trading International.
