Key Takeaways:
Ronald Spektor, 23, faces a 31-count indictment for allegedly orchestrating a year-long social engineering campaign that siphoned nearly $16 million from Coinbase users.
Prosecutors say Spektor impersonated Coinbase support agents, using panic and spoofed alerts to trick victims into moving funds into “safe” wallets under his control.
Authorities have seized roughly $500,000 in cash and crypto so far, while individual victims report losses ranging from tens of thousands to over $1 million.
Ronald Spektor was arraigned in Brooklyn Supreme Court on a 31-count indictment that includes first-degree grand larceny and money laundering. The case highlights how attackers are increasingly bypassing technical security measures by targeting the “human element” of crypto custody, using fear and urgency to trick users into handing over their life savings.
The “Safe Wallet” Trap
According to the Brooklyn District Attorney’s Office, the scheme relied on elaborate impersonation. Spektor allegedly contacted victims via phone, email, and spoofed security alerts, masquerading as a Coinbase employee responding to a breach.
Victims described a barrage of fake two-factor authentication texts from “Coinbase” or Google, followed by urgent calls warning that hackers were draining their accounts. In the ensuing panic, “support staff” (allegedly Spektor) instructed users to move their funds immediately to a “safe wallet” to protect their assets.
In reality, these wallets were controlled by Spektor. Once the transfers were made—often involving Bitcoin, Ether, and other liquid assets – the funds were quickly drained.
Gambling Losses and Laundering
Investigators estimate the total losses at approximately $16 million. The impact on individual victims was severe, with one California resident losing over $1 million and a Virginian victim losing $900,000.
Prosecutors allege that Spektor laundered the stolen proceeds through a complex web of exchanges, token swaps, and online gambling platforms. On-chain analysis linked at least a dozen wallets to Spektor, with one single address receiving over $6.3 million. In Telegram chats under the handle “@lolimfeelingevil,” Spektor allegedly boasted about the thefts and claimed to have lost $6 million of the stolen funds gambling.
Brooklyn man charged with stealing nearly US$16 million
Collaborative Justice
District Attorney Eric Gonzalez noted that the Virtual Currency Unit spent a year building the case, utilizing blockchain analytics to trace funds through mixers and identify the perpetrator.
Coinbase played a pivotal role in the investigation. Chief Legal Officer Paul Grewal confirmed that the exchange worked closely with law enforcement, supplying on-chain data and account records. The company used the indictment to reiterate a critical security rule: Coinbase will never ask users to move funds to a “safe wallet” or request passwords.
Spektor has pleaded not guilty and is currently being held on $500,000 bail. Authorities have so far seized approximately $105,000 in cash and $400,000 in crypto assets, with efforts underway to recover more for restitution.
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