4 men wanted after alleged $195,000 bitcoin fraud

Cornelia Mascio
Marzo 14, 2019

Calgary police are looking to the public to help identify four men suspected in a $200,000 bitcoin fraud that included attacks in seven Canadian cities.

In October 2018, the Calgary police's cybercrime team's investigation began when officers were tipped off to a major fraud involving transactions that target a Canadian bitcoin company, according to the Toronto police.

The first suspect on their radar is believed to be the brain behind the attacks in Hamilton, Montreal, Ottawa, and Toronto; the second suspect is reportedly responsible for the 51 fraudulent transactions in Calgary; and suspects #3 and #4 allegedly responsible for the attacks in Winnipeg and Sherwood Park respectively.

The men succeeded in their theft because they exploited the Bitcoin ATMs' zero-confirmation transactions to double-spend Bitcoin in exchange for money.

Four suspects have been caught on surveillance footage, and are all described as adult men who likely have in-depth knowledge in cryptocurrency, bitcoin, and blockchain technology.

Each of the four suspects in the Bitcoin ATM fraud is believed to have targeted a different area. They seemingly managed to steal the funds by taking advantage of the Bitcoin ATMs accepting 0-confirmation transactions. Further, there is a "double spend" tool that also seems to be at the heart of the transactions. The remainder occurred in Toronto, Montreal, Ottawa, Hamilton, Winnipeg and Sherwood Park, Alta. Although the tools were not specifically created for such criminal activity, the tools essentially enable "stuck" transactions become "unstuck" when one pays an extra fee.

CPS believes that the suspects committed the so-called "double spending".

Bitcoin ATMs have been growing in number across the world, with over 4,000 already in operation.

Police departments from these other cities are assisting the Calgary Police in its investigative efforts. Those with information on the case can submit anonymous tips.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE