Romania Extradites Scammers to US Over Crypto Scheme

  Twelve Romanian nationals have been extradited to  the US to face charges, after a multi-year investigation snapped shut  on an extensive array of scam operations all hinging on cryptocurrency  transfers.All told, fifteen Romanian nationals and one Bulgarian were charged with 24 counts, including RICO conspiracy,  wire fraud conspiracy, money laundering conspiracy, and aggravated  identity theft. The charges indicate that “millions of dollars [worth of  bitcoin]” were stolen in the scams, although firmer numbers are not  forthcoming.The schemes mostly involved advertising fake  merchandise such as cars to unwitting victims, and crafting elaborate  fake personas - or even impersonating real ones - and using credentials  to lure people into sending bitcoin payments to the overseas scammers.  

The report indicated that the scammers often adopted personas of US  military members, presumably to appear more trustworthy.Clearly,  the facility and ease of use of bitcoin unfortunately proved to be a  negative in this instance, as the same crimes would presumably have been  much more difficult to accomplish using traditional bank transfers.      The investigation involved several US agencies, including the  Secret Service and IRS, as well as the Romanian Directorate for  Investigating Organized Crime and Terrorism.If convicted, the extradited individuals face up to 20 years in prison, and between $250,000 and $500,000 in fines.

The Wrong Side of Crypto

This  incident is perhaps notable among crypto scams for being conducted  largely outside of the cryptoasset industry. More often, we hear of exit scams, exchange hacks, and fake giveaways as more typical methods of people losing their crypto (or, of course, Mt.Gox).  But while crypto was an integral part of this campaign of scams, it did  not target people who were already within the crypto community.Probably the most entertaining crypto-related arrest in  recent months was that of cyrpto-rich Wong Ching Kit, after he rained  money down onto a Hong Kong street from a high building as part of a  crypto protomotion.