A sophisticated cyber theft operation targeting crypto has resulted in a guilty plea from 21-year-old man named Evan Frederick Light of Lebanon, Indiana.
The cybercriminal was involved in stealing over $37 million in cryptocurrency from nearly 600 victims.
Light’s plea to charges of conspiracy to commit wire fraud and conspiracy to launder monetary instruments was entered on September 30, 2024.
The U.S. Department of Justice (DOJ) confirmed Light’s involvement in a 2022 cyber intrusion into the servers of a South Dakota-based investment firm.
Using stolen personal information, Light and an unnamed accomplice infiltrated the firm’s systems, gaining access to the private cryptocurrency accounts of hundreds of clients.
Over the course of the operation, Light managed to steal millions in cryptocurrency, which he subsequently laundered through various means, including cryptocurrency mixing services and gambling websites.
Indiana Man Crypto Theft: Up to 40 Years in Prison
The operation began in February 2022, when Light targeted an investment holdings firm in Sioux Falls, South Dakota.
Posing as a real client, Light gained unauthorized access to the company’s servers.
Once inside, he exfiltrated personal identifiable information (PII) from the firm’s database, allowing him to infiltrate the cryptocurrency accounts of nearly 600 victims.
Over $37 million in digital assets were stolen, which exploited the decentralized and relatively anonymous nature of cryptocurrency transactions.
To cover his tracks, Light employed several techniques commonly used by cybercriminals.
He utilized cryptocurrency mixing services, which are designed to obscure the origin of digital assets by pooling and redistributing them among multiple addresses.
In addition, Light funneled some of the stolen funds through gambling websites. The investigation revealed that Light had moved the stolen assets across multiple global locations, making it difficult to track or recover the funds.
The FBI, which led the investigation, worked closely with the DOJ to piece together the case against Light.
U.S. Attorney Alison J. Ramsdell expressed the importance of the conviction, stating,
“These convictions reflect the relentless efforts of the U.S. Attorney’s Office and the FBI in identifying a cybercriminal, holding him accountable, and prioritizing the victims of his crimes.”
Light now faces up to 40 years in prison, with each charge carrying a maximum sentence of 20 years. Restitution to the victims, fines, and a period of supervised release are also likely to be part of his sentence.
The Growing Threat of Cryptocurrency Crimes
A recent report from the FBI’s Internet Crime Complaint Center (IC3) highlighted the alarming rise in cryptocurrency-related crimes.
In 2023 alone, Americans lost $5.6 billion to cryptocurrency fraud, representing a 45% increase from the previous year.
These incidents included various forms of investment schemes, phishing attacks, and cyber intrusions similar to the one orchestrated by Light.
Notably, individuals over the age of 60 were disproportionately affected.
Investment fraud accounted for over 70% of the complaints related to cryptocurrency fraud in 2023, while other forms of fraud, such as government impersonation scams and call center schemes, made up a smaller portion of the incidents.
The IC3 report also revealed that the U.S. remains a prime target for cybercriminals due to its large number of cryptocurrency holders and the growing adoption of digital assets by mainstream investors.
The DOJ and FBI have ramped up their efforts to address these challenges and the growing threat to user security across borders.
FBI Special Agent Alvin M. Winston Sr. said in the DOJ’s report;
“Cyber intrusions pose a serious threat to both individuals and businesses, and we are dedicated to protecting the public from these sophisticated attacks,”.
The post Indiana Man Pleads Guilty to $37M Crypto Theft appeared first on Cryptonews.
