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From Bitcoin Scam to Real-World Kidnapping: The $243M Crypto Heist and Its Deadly Aftermath

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  • Teen Hackers Steal 4,100 Bitcoin worth $243M Using Social Engineering Method
  • A week after pulling the heist, the hackers kidnapped Veer Chetal’s parents in an attempt to extort a larger share of the stolen funds.
  • By March 2025, five suspects had pleaded guilty and could face up to 1l5 years in prison.

The Bitcoin scam that started as an online theft, with a group of teenage hackers stealing $243 million worth of Bitcoin, has turned into something much more serious, like a real-life kidnapping in Connecticut.

The theft started on August 19, 2024, and was executed by three individuals: Greavys (Malone Iam), Wiz (Veer Chetal), and Box (Jeandiel Serrano). The trio targeted a single Genesis creditor, a cryptocurrency investor based in Washington, D.C. They carried out the heist using a complex social engineering scheme.

The attack started when one of the criminals placed a fake call and pretended to be someone from Google support. The criminal used a disguised number to gain the victim’s trust and access personal accounts. Shortly after, another call came from someone claiming to be from Gemini, one of the major crypto exchanges, warning the victim of a ‘supposed’ security breach.

Using this scare tactic, the criminals convinced the victim to reset two-factor authentication (2FA) and unknowingly transferred funds from their Gemini account to a wallet controlled by the hacker. After all of this, the hacker made a loss of 4,100 Bitcoin, worth $243 million at the time.

From Bitcoin Scam to Real-World Extortion

A week after the crypto theft, Veer Chetal’s parents, Sushil and Radhika, were forced into a van by armed men, tied up with duct tape, and driven off. Thankfully, there were nearby witnesses, including an off-duty FBI agent who helped the police track the van.

The couples were quickly released, and four out of the six kidnappers were caught within hours. The reason behind the attack was disturbing, as it is believed that Veer’s partners in the heist pressured him into giving up more of the stolen funds by using his parents as leverage.

That same evening, Greavys and Box were arrested, one during a SWAT raid in Miami and the other at LAX wearing a $500,000 watch. Veer was also taken in quietly and now faces federal charges. By March 2025, five of the six people involved in the kidnapping had admitted guilt, and there is a possibility that they could spend 15 years behind bars.

Authorities are still looking into others connected to the crypto scam, while a federal wallet now holds the recovered Bitcoin.

Read More: HBAR Price Faces Crucial Breakdown Risk, Will $0.15 Hold?

Alex Mashinsky on the Verge of 20-Year Sentence as DOJ Slams Crypto Fraud Mastermind

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  • The Department of Justice has requested a 20-year prison term for Mashinsky, emphasizing that his actions were deliberate and not a result of negligence.
  • Despite pleading guilty, Mashinsky still refuses to take full responsibility for his fraudulent acts, shifting blame to external factors while personally profiting $48 million from the scheme.

The Department of Justice (DOJ) has requested that the founder of Celsius, Alex Mashinsky, serve a 20-year prison sentence because they believe that his actions didn’t come as a result of negligence or market misfortune but rather a series of calculated and deliberate decisions to lie. Their decision underscored the gravity of his offenses and the damage he inflicted on investors.

One of the co-founders of the collapsed crypto platform, Alex Mashinsky, could spend 20 years in prison if the U.S. Department of Justice gets its way. In a memo filed on the 28th of April, the DOJ asked the court to give him a strong sentence for his role in the platform’s fraud.

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Alex Mashinsky on the Verge of 20-Year Sentence as DOJ Slams Crypto Fraud Mastermind 2

According to them, his actions were not a mistake but instead a purposeful act to scam users. This mistake caused around $7 billion in damage and hurt thousands of people. After Celsius froze withdrawals in June 2022, users lost access to about $4.7 billion in combined crypto assets. The DOJ described Mashinsky’s behavior as a long-running scheme driven by greed and deception.

Mashinsky’s Guilty Plea and Refusal to Take Responsibility

Mashinsky, who admitted guilt in December 2024, misled users about the security of their money and secretly manipulated the CEL token to make a profit.

Despite confessing to the court, he still avoids taking complete responsibility for his actions but instead points fingers at outside forces, including officials, the market, and even the people he stole from. Prosecutors said his actions were not mistakes or poor judgment but clear plans to cheat and steal for personal gain.

He made at least $48 million for himself after causing over $500 million in damage. When the company was still in operation, it claimed to have managed $20 billion in crypto, but behind the scenes, it took big risks, used customer funds to pump token prices, and gave ‘hodl-ers’ false promises.

Although he told investors he was holding CEL tokens, he had actually sold the tokens for millions at its peak. The DOJ wants Mashinsky’s punishment to match the damage done and warn others in the crypto world.

Read More: Galaxy Digital Moves 23,900 ETH to Coinbase, Market Braces for Impact

Solana’s Loopscale Suffers Setback After $5.8 Million Exploit Weeks After Launch

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  • Loopscale, a Solana-based DeFi lending protocol, was hacked two weeks after its launch, causing it to lose over $5.8 million (around 12% of its TVL) and forcing the platform to pause most of its services while investigations on the case go on.
  • The platform was launched on April 10 after a six-month closed beta.

Solana’s DeFi project, Loopscale, has been hacked and is now one of the top 2025 hacks that caused victims to lose over $5.8 million, which amounts to about 12% of its total value locked. Following the incident, the platform decided to pause its lending services so as to prevent any further damage. The exploit happened just two weeks after Loopscale’s official launch, marking a major blow to the new protocol.

On the 26th of April, attackers exploited a vulnerability in one of Loopscale’s lending markets, stealing about 5.7 million USDC and 1,200 Solana (SOL), according to Mary Gooneratne, the cofounder of the platform. The stolen funds represent almost 12% of the protocol’s total value locked (TVL).

Due to the exploit, Loopscale temporarily paused its lending but later allowed limited functions, like loan repayments, top-ups, and loop closings. Other main features like Vault withdrawals remain restricted as the investigation continues.

According to the platform, the exploit happened because of a problem with how Loopscale priced RateX-based collateral. “There is no issue with RateX itself related to this. Loss of funds explicitly affects depositors to SOL and USDC Genesis vaults,” the platform added.

Presently, an investigation is ongoing to determine the full effect of the breach and also ways for fund recovery. Gooneratne stated that their team is fully mobilized to investigate the situation, recover stolen funds, and ensure user protection.

The Launch of Solana DeFi Lending Platform

The DeFi lending platform, Loopscale, was launched on April 10 after a six-month closed beta. It aims to improve capital efficiency by directly connecting lenders and borrowers. Its main USDC and SOL vaults offer yields above 5% and 10%, while also supporting lending for tokens like JitoSOL and BONK, along with looping strategies across more than 40 token pairs.

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Long Island Man Handed 18-Year Sentence for Orchestrating $12 Million Crypto Scam

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  • Eugene William Austin Jr., a Long Island man, along with his son Brandon, has been convicted in a crypto scam that defrauded over 24 victims. The duo posed as cryptocurrency brokers, deceiving investors with false promises of high returns.
  • The court sentenced Austin to 18 years in prison, ordered him to repay $12.66 million, forfeit over $6 million, and surrender a luxury Jaguar SUV used during the scheme.

A man from Long Island, the southeastern part of New York, has received an 18-year prison term for taking part in a $12 million crypto scam. He was found guilty of tricking investors and misusing their funds, leading to a major financial loss for all parties involved.

The 62-year-old culprit, Eugene William Austin Jr., who also went by the name Hugh Austin, was given 18 years in jail and three years of monitored freedom for cooperating with his son and running a crypto scheme that tricked over 24 people out of $12 million.

How the Crypto Scam Was Carried Out and Court Sentences

Austin, with his son Brandon, acted as crypto middlemen; they pretended to help arrange bulk crypto transactions with different promises of short-term gains on their crypto asset investments. They also claimed they could help secure backing for new companies through ‘their’ wealthy connections. One of their fake deals alone got them $5 million, with others around $500,000.

Over 24 individuals, including family and longtime associates, were deceived. And instead of investing the funds, Austin and Brandon spent the cash on five-star hotels, luxury dining, designer shopping, expensive car rentals, and small repayments to victims to keep the scheme going.

In addition to his sentence, the court ordered Austin to return $12,662,564 and forfeit $6,062,564 plus a 2022 Jaguar SUV taken during his arrest. His son has already been sentenced to four years in prison.

According to the Department of Justice, every person who gave loans or funds for these fake ventures ended up losing their money.

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Bybit Employee’s $5.7M Heist Ends in Mercedes Seizure & Prison

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  • Ex-Bybit payroll chief gets nearly 10 years for stealing $5.7M in crypto.
  • Singapore court first to recognize crypto as property held in trust.
  • Landmark ruling sets precedent for crypto legal cases, boosts investor protection.

Ho Kai Xin, former payroll chief at cryptocurrency exchange Bybit, is sentenced to nine years and eleven months in prison for public funds misappropriation amounting to $5.7 million. Ho conducted a series of illegal transfers, moving large amounts of cryptocurrency from Bybit’s corporate e-wallet to four personal wallets under her control.

The case dates back to 2023 when the based exchange filed a lawsuit against Ho, alleging she violated her employment contract by the unauthorized transfer of USDT to her personal crypto addresses and fiat currency to her bank account. Bybit moved the court for the return of the stolen funds or their equivalent value.

When confronted with suspicious transactions, Ho, initially claimed the transfers were accidental or due to technical errors. She later shifted blame to her maternal cousin, Jason Teo, alleging he stole her personal identification, preventing her from accessing her accounts. However, Judge Philip Jeyaretnam ruled out the existence of Teo. Consequently, the court granted Bybit a summary judgment against the contractor. She was also ordered to cover Bybit’s legal costs of $45,000 plus disbursements of $11,500.

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Source: The Straits Times

Authorities also seized assets, including a Mercedes-Benz, while Bybit recovered over $1.1 million in $USDT.

Singapore High Court Makes History In Bybit’s Case

This case marks a significant landmark decision for the burgeoning digital asset industry in Singapore. Because the High Court’s ruling explicitly recognized cryptocurrency as property that can be held in trust. The ruling subsequently set a legal precedent with several other common law jurisdictions. In January 2023, an English High Court also recognized that Bitcoin and other cryptocurrencies are considered property and can be subject to a proprietary injunction.

It also provided much-needed legal clarity and protection for cryptocurrency holders and exchanges operating within Singapore’s jurisdiction.

Ho Kai Xin’s sentencing underscores the severity of financial crimes involving digital assets and serves as a deterrent against future malfeasance within the cryptocurrency space. The case highlights the importance of robust internal controls and vigilant monitoring of financial transactions within cryptocurrency exchanges.

Crypto Scam Alert: Why Pig Butchering Fraud is More Dangerous Than Ever, Report

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  • Pig butchering scams surged by 40% in 2024, spreading globally and targeting crypto users with deceptive strategies.
  • Fraudsters are shifting to quicker, smaller scams, like fake job offers, alongside traditional “long con” tactics.
  • Crypto drainers and phishing scams have increased dramatically, with a 170% rise in stolen funds and 15,000% rise in phishing.

The crypto related scams especially the one known as the ‘pig butchering fraud’ have increased in 2024. Official data reveals that the incidents have gone up by 40% compared to last year, all this causing concern to authorities and individuals using cryptocurrencies. These types of scams, which originated in Southeast Asia, are gradually penetrating other areas of the world, so they pose a global threat.

Pig Butchering Fraud Adaptations

Pig butchering scams involve the process of luring people into paying large amounts of money to the scammers and emptying their accounts. Instead, the number is used by the fraudster to get hold of the victim’s money, making them a cash cow for the culprit. 

However, it has been noticed that fraudsters are adopting multiple ways of operation as they change their strategies. According to Chainalysis, fraudsters are increasingly using faster an smaller frauds, such as fake employment opportunities like work from home or getting a job that may need a deposit to be paid.

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Source: Chainalysis

These new tactics have worked well, so the fraudsters are able to get high returns while covering a wider audience. However, the ‘long con’ is still used but together with these faster cons. The latter leads to more people’s becoming fraud targets of relatively more frequent but less noticeable frauds.

Surge in Crypto Scams

Chainalysis has identified increased trend in the financial aspect of these cons in the market. Though the rates of the pig butchering fraud have risen with deposits by 210% this year, the average amount defrauded from an individual has dropped by 55%. This means that scammers are interested in the quantity rather than a quality of targets offering them enormous amounts of money instead of investing in one person or company.

Other types of crypto fraud have also been on the rise, also touching on the necessity of contributing to developing more effective measures to prevent these activities. Crypto criminals that operate directly by stealing from the victims’ accounts had a 170% increase in their revenues from March to April.

Furthermore, traditional phishing and advance fee fraud, which usually go after users with large quantum of cryptocurrency, surged by 15,000%. Attacks have become more sophisticated; one of these calamitous attack transpired in May which contributed to the rise of such fraud.

Chainalysis also discovered that Huione Guarantee which is another online platform affiliated to the Huione Group is behind these scams. As for now, it has handled over $70 billion worth of cryptocurrency transactions since 2021, and analysts have associated the platform with funding of pig butchering frauds and other frauds.

As these scams progress, users are encouraged not to let their guard down. The scammers are becoming more creative in their strategies as the number of people investing in the crypto space expands, which is why anyone dealing with crypto tokens should be well equipped and be very attentive.

Scam Sniffer Warns Fake Influencers Are Stealing Crypto Funds

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  • ScamSniffer warns about fake influencer accounts targeting crypto users, leading them to malicious Telegram groups to steal assets.
  • The malware, activated by the “OfficialSafeguardBot,” tricks users into quickly verifying, compromising private keys and wallets.
  • Impersonation accounts increased by 87%, leading to over $3 million in losses, ScamSniffer urges users to secure assets with hardware wallets.

ScamSniffer, a Web3 security company, has warned of a new and complex scam that is currently duping cryptocurrency users. The scheme involves the fraudsters mimicking popular crypto personas and luring people to join certain Telegram groups which are essentially fraudster’s pinned groups that install malware to steal digital assets.

The scam starts when the fraudsters create Fake X (formerly Twitter) accounts which are almost identical to those of Popular Cryptocurrency Influencers. These fake accounts promote special groups of the popular messaging app Telegram, which are said to provide tips on investments and profitable offers. That is why scammers try to replicate real influencer accounts and use them in their fraudulent groups to make them look and feel like legitimate communities.

Tactics Used by Scammers

After a user clicks on the invite link, he or she will be asked to verify membership by interacting with a Telegram bot called OfficialSafeguardBot. As stated by ScamSniffer, the bot uses an approach that tries to force users into taking actions as fast as possible with the help of capthcas to solve. This process makes users more vulnerable to being scammed because of the haste with which they are carrying out the process.

Platform has identified several recent cases where this approach was used to steal the private keys of users. The specific malware employed in these attacks is particularly subtle and can avoid being identified by most anti-malware software. Despite this, the malware has only been detected as malicious by VirusTotal, a situation that makes it hard for users to detect the threat and prevent the loss of their money.

The platform suggests that the followers of cryptocurrencies should take some precautions to guard against these threats. Others are; storing private keys in hardware wallets, not executing any command that one is not familiar with and not installing any software from unconfirmed sources. Adopting the following measures will greatly minimize the possibility of asset theft through these scams.

DeFi Protocol Hit by Malware

This warning comes after ScamSniffer reported that there had been a increase in the creation of fake X accounts in the last month. Impersonation accounts increased by over 87% since November and caused important financial damages. Of interest, two victims lost more than $3 million each after clicking on the links that were shared by these fake accounts.

This follows the increase in the value of cryptocurrencies, which includes BTC that hit $100,000, and the increase in the value of other cryptocurrencies commonly known as altcoins. While the crypto market is becoming more and more profitable, the number of people trying to take advantage of the growing audience is also growing.

In October, a decentralized finance protocol known as Radiant Capital lost more than $50 million when the attackers gained access to the developer systems through a PDF file containing malware in a zip file. This attack was a social engineering one and the file was delivered via Telegram by an impersonator of a former contractor.

Bitcoin Trader Robbed of More Than $350,000 Gets Justice as Main Accused Gets Charged in Singapore

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Ever since the inception of the cryptocurrency industry, it has witnessed several cases of scams and fraudulent activities. Sometimes these events tend to go overboard in the physical world as well.

This week, a court in Singapore adjudged that the last member of a three-member gang who stole thousands of dollars from a Bitcoin trader was guilty. Jaromel Gee Ming Li was sentenced by the court to three years in jail as well as twelve strokes of the cane as part of his punishment. 

Ming Li and his cohort included Mohd Abdul Rahman Mohamad and Syed Mokhtar Syed Yusope and were involved in attacking a Bitcoin trader back in 2018. Abdul Rahman is yet to go on trial for his crimes while Syed Yusope has already pleaded guilty to robbery. According to sources, Abdul Rahman and Ming Li would act as third parties in a bid to lure cryptocurrency investors into their trap.

In these instances, buyers would approach them with a lot of money looking to make a massive profit by trading cryptocurrencies like Bitcoin. During the event in question, the three parties decided not to transfer the cryptocurrencies even if the buyer provides them with the capital. The victim, Pang Joon Hau had traveled from Malaysia to Singapore to conduct cryptocurrency trades where he fell prey to Ming Li’s scam.

Mr. Joon Hau had a total of $365,000 with him that he planned to convert to cryptocurrencies. When Ming Li found out about this plan, he quickly informed both Abdul Rahman and Mokhtar who arrived at the hotel at night to execute the plan. During a meeting between Mr. Pang and a Bitcoin broker, Mokhtar interfered and attacked Mr. Pang for his money. Both Abdul and Mokhtar made off with the money but their happiness was shortlived as Abdul was arrested just two days later.

Kin of the accused was also brought in to establish proof with Abdul Rahman’s ex-wife also pleading guilty for receiving contraband from him. This turned out to be the final nail in the coffin as it started the snowball effect of arrests. Abdul’s ex-wife was also sentenced to 9 weeks in jail starting from mid-October. The final conclusion of the case will only be revealed at the end of the last arrest with many members of the cryptocurrency community wondering how harsh the penalty would be.