A 21-year-old Indiana cybercriminal has admitted to swindling over 500 individuals of $37 million worth of cryptocurrency in a 2022 cyber-attack. Frederick Light pleaded guilty before the courts after being found complicit in a wire fraud crime.
He is being jointly charged with conspiracy to launder monetary instruments. This comes as cases of cybercrime have been on the rise in the past decade on the back of an increase in digitalization.
The Indiana cybercriminal accessed servers using stolen identity
According to an article by Security Affairs , it is understood that Light engaged in a cyberattack on an investment firm in Sioux Falls, South Dakota in February 2022. Light stole cryptocurrency worth $37 million from 571 victims through a real client’s identity in that incident.
The article further reveals that the client’s identity gave Light the access to the company’s servers and penetrated the Personal Identifiable Information (PII) of the clients’ database leading him to steal digital currencies from those clients.
The Department of Justice (DoJ) revealed that he succeeded in his fraudulent activity with the assistance of an unnamed accomplice.
“Light stole customer personal identifiable information (“PII”) and then stole cryptocurrency worth over $37 million from nearly 600 victims. He acted with one or more unidentified perpetrators.”
DoJ.
“After successfully accessing the computer servers, he then exfiltrated from the servers the PII of hundreds of other clients, using this access to steal virtual currencies from the clients who held such assets with the investment holdings company,” added the DoJ.
According to the DoJ, Light laundered the stolen funds by channeling them to different locations across the world including multiple mixing services and gambling websites.
Cybercrime cases involving cryptos continue to increase
According to Security Affairs, Light will be incarcerated for a long time for his fraudulent activities as each count carries an extreme penalty of up to 20 years in prison, a fine, three years of supervised release, a $200 special assessment, and potential restitution.
But, Light’s case is not unique as there has been an increase in cases of cryptocurrency scams and other cybercrimes across the globe. Russia is reportedly one of the biggest victims of cybercrimes and suffered over 40 million cases of data breaches during the first quarter of 2022 alone.
In Oceania, Australia is the biggest victim while Nigeria is a hotbed for cybercrimes in Africa, according to studies. According to AAG , it is estimated that the average cost of cyber breach was about $4,35 million in 2022, and it predicts the global economy will incur about $10.5 trillion due to cybercrime costs compared to $7 trillion in 2022.
Reports also show criminals are increasingly targeting cryptocurrencies and other digital assets in executing their crimes. Earlier this month, the US government sanctioned two crypto exchanges – Cryptex and PM2BTC for allegedly facilitating the laundering cryptocurrencies obtained through cybercrimes.
Last month, the DoJ arrested Malone Lam, also known as “Greavys,” “Anne Hathaway,” and 21-year-old Jeandiel Serrano also known as “Box,” “VersaceGod,” and “@SkidStar” in a separate case of alleged cybercrime involving digital assets. It is alleged that the duo stole an estimated $230 million worth of cryptocurrencies.
The case came to light after the pair attempted to launder the stolen cryptocurrency through crypto exchanges and mixing services.
