Ronald Spektor, 23, admitted stealing cryptocurrency from about 100 victims nationwide after posing as a Coinbase representative and convincing users to move their assets into wallets he controlled.
BROOKLYN, NY — A Brooklyn man who prosecutors said stole nearly $16 million in cryptocurrency from about 100 victims across the United States has been sentenced to four to 12 years in state prison.
Ronald Spektor, 23, of Sheepshead Bay, was sentenced Wednesday by Brooklyn Supreme Court Justice Danny Chun after pleading guilty to all 31 counts of an indictment charging him with money laundering, grand larceny, criminal possession of stolen property and related offenses.
Prosecutors said Spektor posed as a Coinbase representative and convinced victims that hackers had compromised their accounts. He then persuaded them to transfer their cryptocurrency into new wallets that victims believed were secure but were actually accessible to him.
Some victims lost $1 million or more.
Prosecutors Say Spektor Stole Nearly $16 Million
The Brooklyn District Attorney’s Office said its Virtual Currency Unit traced approximately $15.94 million in losses to about 100 Coinbase users over the course of the investigation.
“Today’s sentencing holds the defendant accountable for a brazen, long-running social engineering scam that amounted to a digital robbery of nearly 100 victims,” Brooklyn District Attorney Eric Gonzalez said.
Gonzalez said investigators reconstructed the digital trail behind the scheme, tracked the stolen cryptocurrency and identified Spektor through blockchain analysis, transaction records and evidence recovered through multiple search warrants.
“Our Virtual Currency Unit painstakingly pieced together the digital proof that identified the defendant behind this sophisticated scheme, followed the money that he stole and compiled iron-clad evidence against him,” Gonzalez said.
Spektor pleaded guilty Sept. 2 to the entire indictment, including first-degree money laundering, first-degree grand larceny and first-degree criminal possession of stolen property.
The four-to-12-year sentence was imposed as part of a promised sentence from the court. Prosecutors said the District Attorney’s Office objected and had sought a sentence of seven to 21 years.
Victims Told Their Cryptocurrency Was at Risk
According to prosecutors, Spektor or others working with him contacted Coinbase customers and claimed to be representatives of the cryptocurrency exchange.
Victims were told hackers were attempting to steal their assets and that they needed to immediately move their cryptocurrency into a new “safe” wallet.
The wallets, however, were allegedly controlled or accessible by Spektor.
Once victims transferred their assets, prosecutors said Spektor emptied the accounts and began moving the cryptocurrency through multiple exchanges and services in an effort to conceal its source.
The assets were repeatedly swapped into different cryptocurrencies before being consolidated at what investigators described as “cash-out points.”
Some of the stolen funds were sent to cryptocurrency gambling services, online storefronts and services that allowed assets to be converted into cash, gift cards or other digital currencies.
Home IP Address Helped Investigators Trace Scheme
Investigators said Spektor lived with his father in Brooklyn while operating the scheme.
According to the District Attorney’s Office, Spektor’s home IP address was linked to multiple cryptocurrency wallets associated with stolen funds.
Investigators also recovered digital evidence showing Spektor recruited other people through online forums to work as social engineers, helping impersonate trusted companies or create the appearance that victims’ accounts were being hacked.
Prosecutors said transaction records, blockchain analysis, digital forensic evidence and evidence seized during search warrants ultimately tied Spektor to the operation.
Prosecutors: Spektor Bragged About Scams Online
The investigation also uncovered online messages prosecutors said showed Spektor openly discussing his activities.
Authorities said Spektor used the Telegram handle @lolimfeelingevil and operated a channel called “Blockchain enemies,” where he allegedly bragged about cryptocurrency thefts.
Investigators also recovered messages in which Spektor said he had lost approximately $6 million worth of cryptocurrency gambling and suggested he had made millions through scams, according to prosecutors.
He also communicated through Discord and other encrypted platforms.
After allegations of fraud involving Spektor began circulating online, investigators said text messages recovered from his phone showed he disposed of a cryptocurrency hardware wallet and bought another one.
Nearly $16 Million in Restitution Ordered
Spektor was ordered to make restitution totaling nearly $16 million.
The court also ordered him to forfeit cash, cryptocurrency and personal property valued at more than $500,000.
Gonzalez said the prosecution should serve as a warning to others attempting to hide behind cryptocurrency transactions.
“This case should put crypto scammers on notice: we will follow the digital trail wherever it leads and aggressively pursue those responsible,” Gonzalez said.
DA Warns Cryptocurrency Users About Phishing Calls
Prosecutors said cryptocurrency users should be wary of unexpected calls, messages or emails claiming an account has been compromised.
Coinbase and most legitimate companies will not unexpectedly call customers and direct them to move cryptocurrency into a so-called safe wallet, the District Attorney’s Office said.
Authorities also warned users not to rely solely on caller ID, sender names or website addresses because those can be spoofed or designed to resemble legitimate companies.
Prosecutors urged anyone receiving an urgent request to move money or cryptocurrency to independently verify the request before making a transfer.
Ronald Spektor, 23, of Brooklyn, was sentenced to four to 12 years in prison after admitting to a cryptocurrency phishing scheme that prosecutors said stole nearly $16 million from about 100 victims nationwide.
A Brooklyn man was sentenced to up to 12 years in prison for a Coinbase phishing scheme that stole nearly $16 million from about 100 victims.
Ronald Spektor, Coinbase scam, cryptocurrency fraud, Brooklyn crime, phishing scam
I can also tighten this into a more aggressive Google Discover version centered on the “@lolimfeelingevil” crypto scammer angle.