A 23-year-old Brooklyn man has been charged with stealing approximately $16 million in cryptocurrency from nearly 100 Coinbase users through a fraudulent scheme and psychological manipulation, prosecutors announced Friday.
According to the Brooklyn District Attorney's Office, Ronald Spektor impersonated a Coinbase representative and contacted victims, telling them their digital assets were at serious risk and that immediate action was needed.
Based on this scenario, Spektor is accused of pressuring users to transfer cryptocurrency to wallets under his control.
The scammer is accused of exploiting the victims' panic.
Prosecutors said Spektor operated online under the alias “lolimfeelingevil” and primarily used traditional social engineering tactics rather than technical exploitation.
Victims are warned that their money could be stolen by hackers if they don't act quickly, a tactic designed to overcome suspicion and trigger panic-driven decisions.
After the cryptocurrency was transferred, Spektor allegedly attempted to conceal the flow of funds by circulating assets through coin mixing services, Token Swap , and cryptocurrency betting platforms.
Investigators say these steps are intended to make it more difficult to trace and recover stolen property.
Spektor appeared in court on Friday facing 31 charges, including first-degree aggravated theft, first-degree money laundering, and involvement in an organized fraud conspiracy.
These allegations are the result of a year-long investigation by the Brooklyn District Attorney's Office.
During the investigation, authorities seized approximately $105,000 in cash and about $400,000 in digital assets. Prosecutors said efforts to recover additional assets related to the case are ongoing.
Investigators also pointed to Spektor's online activity as key evidence. Prosecutors said he had "publicly boasted about his deals" in a Telegram channel called "Blockchain enemies".
In the recovered messages, Spektor allegedly admitted to losing $6 million in cryptocurrency due to gambling, revealing in part how the stolen funds were subsequently handled.
According to prosecutors, Spektor lived with his father in the Sheepshead Bay neighborhood of Brooklyn.
A judge set bail at $500,000, according to ABC7 New York , and denied Spektor's father's request to post bail, citing concerns about the source of the funds.
One alleged victim contacted blockchain investigator ZachXBT , who published an investigation into the alleged scam last year. According to that report, the individual stated they lost $6 million.
Security concerns about Coinbase are rising again following the $400 million data leak.
The incident occurred amidst ongoing scrutiny of Coinbase regarding user security.
Earlier this year, the exchange revealed a data leak affecting nearly 70,000 users, with estimated losses of around $400 million.
Coinbase said it has reimbursed affected customers and strengthened internal controls following the incident.
The exchange also stated that it has worked closely with the Brooklyn District Attorney's Office and its Cryptocurrency Unit throughout the investigation.
In a blog post, Coinbase stated that it assisted in identifying the suspect and victims, Chia on-chain data related to the incident, and helped authorities trace the stolen assets.
