Seven individuals have been indicted for stealing over $300,000 in #Bitcoin from a Queens resident. The charges against them include grand larceny, money laundering, and identity theft, stemming from a lengthy investigation into a cryptocurrency wallet hack. Using advanced hacking techniques, the group allegedly stole the bitcoin and now face potential sentences of five to 15 years if convicted.
Seven Indicted in Queens Bitcoin Theft Case
Queens District Attorney Melinda Katz announced on Monday that seven individuals have been indicted by a grand jury “on charges of grand larceny, money laundering, identity theft and other related crimes following a long-term investigation into a hack of a private cryptocurrency wallet belonging to a Queens resident.” The announcement details:
Bitcoin was removed from the victim’s Blockchain.com wallet through two unauthorized transactions in November 2022.
At the time of the hack, the 5.75 bitcoins were valued at approximately $92,000. Today, that same cryptocurrency amount is valued at over $300,000,” the announcement adds.
The defendants allegedly laundered the stolen bitcoin using a “peel chain,” which involves breaking down significant amounts of illegal cryptocurrency intomultiple smaller transfers. The Cyber Crimes Unit of the District Attorney’s office tracked more than 250 of these transactions, with a substantial number funneling into different Cash App accounts. Investigators were able to connect these accounts back to the suspects.
"The alleged ringleader, Aaron Peterson Jr., along with his parents and two other co-defendants, were arrested in California and are now awaiting arraignment “on a seven-count indictment charging them with grand larceny in the second degree, money laundering in the second degree, two counts of identity theft in the first degree, computer trespass, and conspiracy in the fourth degree.”
According to the announcement:
They each face a potential maximum sentence of 5 to 15 years in prison if convicted of the top count.
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