Two Russians who were taken in custody earlier this week by the United States Department of the Treasury on allegations of being crypto thieves & allegedly making their millions via market manipulation and phishing.
The Prosecutors detailed Danil Potekhin and his partner Dimitrii Karasavidi’s alleged heists, victims & target exchanges within a 30-page forfeiture complaint filed earlier today on Wednesday against the pair’s previously seized cryptocurrency funds.
The two alleged Russians namely Karasavidi and Potekhin “deployed” a series of bogus Poloniex, Gemini as well as Binance alike websites that duped several users into sharing their login credentials, giving the hackers control of their wallets.
They then were able to “drain” over $20 Mln worth of Bitcoin [BTC], Ethereum [ETH] & NEO from the victims’ accounts, consistent with the complaint. Prosecutors added that the lion’s share ended up in Karasavidi’s Bitfinex account.
While the other funds were frozen by the Poloniex exchange and the other were quickly seized by authorities, who filed the lawsuit to take control of 15,602 ETH, 199.8 BTC, $6.1 Mln in cash & 1,199 NEO, a complete worth of over $14.2 Mln at the reporting time.
That Ethereum [ETH] haul was actually the merchandise of a separate hacker scheme: market manipulation, the regulators added.