A Brooklyn resident has been charged with large-scale fraud against Coinbase users.
Date: 2025-12-22 Author: Gabriel Deangelo Categories: IN WORLD
The Brooklyn District Attorney's Office has charged 23-year-old local resident Ronald Spector, who is suspected of masterminding a fraudulent scheme that resulted in the theft of approximately $16 million from Coinbase cryptocurrency platform users. According to investigators, approximately 100 people from various states across the United States fell victim to the crime.
According to law enforcement, the fraudulent operation lasted from April 2023 to December 2024. During this period, Spector contacted Coinbase users, posing as a customer support representative. He convinced them that their accounts were at risk of hacking or unauthorized access and urged them to take immediate steps to "protect their funds."
Under the guise of security, the accused instructed users to transfer crypto assets to so-called "safe wallets." In reality, these addresses were under his complete control. Once the funds were transferred, account holders lost access to them.
The investigation also established that after receiving the cryptocurrency, Spector attempted to conceal the origin of the assets. To do so, he used various laundering tools, including crypto mixers, exchange services, and online gambling platforms. In some cases, the funds were quickly split and transferred through a chain of addresses to complicate transaction tracking.
The victims included users who suffered particularly large losses. One California resident lost over $1 million, while another victim in Virginia reported a loss of over $900,000. Investigators interviewed over 70 people as part of the investigation, but prosecutors estimate the total number of victims may be as high as 100.
The defendant's online activity drew additional attention. Authorities say Spector used the pseudonym "lolimfeelingevil" and administered a Telegram channel called "Blockchain Enemies." In this channel, he allegedly openly bragged about his successful thefts and even admitted to losing approximately $6 million on gambling platforms.
During the search, law enforcement seized approximately $105,000 in cash and approximately $400,000 in cryptocurrency. Coinbase actively participated in the investigation, cooperating with the Brooklyn District Attorney's Office's virtual currency unit and helping track the movement of the stolen assets. Coinbase CEO Brian Armstrong stated that the company intends to continue to promote accountability for crypto scammers.
Independent blockchain analyst ZachXBT, who previously published materials related to one of the victims, has also joined the investigation. Spector's lawyer stated that his client denies guilt and considers the charges unfounded.
