Skip to main content

DEA Duped: How a Crafty Crypto Scammer Outwitted the Agency and Made Off With $55K

DEA Duped: How a Crafty Crypto Scammer Outwitted the Agency and Made Off With $55K

In a revealing report published on August 24, 2023, a significant oversight by the Drug Enforcement Agency (DEA) was brought to light. In their endeavor to manage assets confiscated from a nefarious enterprise, the DEA mistakenly funneled funds to an unrelated scammer, falling prey to a notorious crypto dusting scam.

Blockchain Blunder: DEA Mistakenly Transfers $55K to Crafty Scammer

Previously this year, the DEA suffered a setback, losing over $50,000 to a rampant cryptocurrency con. This hefty sum had been seized over a long three-year probe into the use of digital currencies for suspected drug money laundering, as chronicled by Forbes’ Thomas Brewster.

Come May, the DEA undertook a massive seizure, capturing nearly $500,000 in the stable cryptocurrency, tether (USDT). This operation pinpointed two Binance accounts believed to be channels for the illicit flow of drug-tainted proceeds. A search warrant, available to Forbes, verified this narrative.

In a bid for security, the DEA transferred these assets to their vaulted accounts. They were subsequently housed in a Trezor hardware wallet, safely tucked away in a fortified location. But, unbeknownst to the DEA, an astute fraudster had their eyes glued to the blockchain.

Detecting the DEA’s trial transaction — a mere $45.36 in tether sent to the U.S. Marshals — the fraudster saw an opportunity and pounced. Employing a method dubbed “dusting,” the trickster dispatched a minuscule fraction of USDT to the DEA’s digital coffer.

This subtle transaction laid the groundwork for a snare. The DEA’s crypto wallet, upon acknowledging this trifling deposit, laid its defenses bare. Hoping to ensnare the funds’ custodian, the scammer anticipated the owner would mistake the dusting address for a legitimate U.S. Marshals’ one.

Interestingly, the ruse proved successful. The DEA, misled by the fraudulent address, unwittingly dispatched $55,000 in tether to the impostor. Jolted by this misstep, the DEA sprang into action, seeking the diverted funds.

Teaming up with Binance, they pinpointed the accounts tied to the scam. However, the money had vanished — morphed into bitcoin (BTC) and dispersed amidst a sea of wallets, leaving recovery an uphill battle. Brewster further detailed that the DEA and the Federal Bureau of Investigation (FBI) declined to comment on the mishap.

What do you think about the DEA’s mistake? Share your thoughts and opinions about this subject in the comments section below.



from Bitcoin News https://ift.tt/ejVRda4
Labels:

Comments

Post a Comment

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...
10 comments
Read more

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli...
Post a Comment
Read more

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought...
Post a Comment
Read more