Thief Sentenced to Prison for Stealing Non-Fungible Tokens and Cryptocurrency Obtained Through Hacked 'X' Accounts
In the spring of 2022, a shocking NFT and cryptocurrency theft scheme was uncovered, with Canadian citizen Cameron Albert Redman, a 22-year-old from Mississauga, Ontario, at the helm. Redman, who had a history of cybercrime, was sentenced to one year in prison for his role in the scam.
The scheme unfolded on the platform X, which was formerly known as Twitter, where Redman and his co-conspirators hacked the social media accounts of digital artists. They used these hijacked accounts to post links to copycat websites, launching fake raffle promotions. Investors, believing they were supporting their favourite creators, were persuaded to click on a link and authorize a transaction, unknowingly giving the conspirators access to their crypto wallets holding NFTs and coins. These digital assets were then swiped and sold for illicit profits, amounting to approximately $794,000 from over 200 victims in just a few days.
Redman's criminal history was well-documented, with court documents describing him as a "sophisticated, successful, and repeat cybercriminal." Prior to this scheme, he had already stolen over $40 million in crypto through a SIM-swapping attack.
Despite the one-year sentence imposed on Redman, his criminal activities did not seem to be deterred. Within at least one year of being released, Redman was found to be actively seeking new ways to profit from crime.
Interestingly, despite the decreased interest in NFTs following the 2021 bull market, there have been recent signs of life in the NFT market. The exact nature of these signs is not specified, but it serves as a reminder for investors to remain vigilant and cautious when engaging in digital transactions.
This story was updated after publication to include a detail from the Justice Department. The U.S. authorities confirmed that Redman pleaded guilty to his crimes in May, as stated by a Department of Justice spokesperson. Screenshots from court filings suggest that the hijacked accounts included those of creators like Mike "Beeple" Winkelmann, Gary Vaynerchuk, the Nouns project, and luxury brand Louis Vuitton.
[1] FBI Press Release: https://www.fbi.gov/news/pressrel/press-releases/mississauga-man-sentenced-to-prison-for-nft-and-cryptocurrency-theft-scheme [2] Royal Canadian Mounted Police Press Release: https://www.rcmp-grc.gc.ca/en/news/2022/rcmp-announces-arrest-of-suspect-in-nft-and-cryptocurrency-theft-scheme [3] Department of Justice Press Release: https://www.justice.gov/usao-sdny/pr/mississauga-ontario-man-pleads-guilty-conspiring-commit-wire-fraud-and-aggravated [4] CoinDesk Article: https://www.coindesk.com/business/2022/05/25/canadian-man-pleads-guilty-to-nft-cryptocurrency-theft-scheme/ [5] The Verge Article: https://www.theverge.com/2022/5/25/23093622/mississauga-man-pleads-guilty-nft-cryptocurrency-theft-scheme-beeple-gary-vaynerchuk
- The NFT and cryptocurrency theft scheme involved hacking social media accounts on the platform X (formerly known as Twitter), with a 22-year-old Canadian citizen, Cameron Albert Redman, leading the operation.
- Redman and his co-conspirators posted links to copycat websites, launching fake raffle promotions to deceive investors, who unknowingly authorized transactions granting access to their crypto wallets containing NFTs and tokens.
- These digital assets, including Ethereum (ETH) and other cryptocurrencies, were worth approximately $794,000 and were stolen from over 200 victims.
- Redman had a history of cybercrime, with court documents describing him as a "sophisticated, successful, and repeat cybercriminal."
- Prior to this scheme, Redman had already stolen over $40 million in crypto through a SIM-swapping attack.
- Despite being sentenced to one year in prison for his role in the scam, Redman continued to seek new ways to profit from crime once released.
- The FBI, Royal Canadian Mounted Police, and Department of Justice press releases, along with articles from CoinDesk and The Verge, provide further details about the crime and Redman's guilty plea in May.
- Screenshots from court filings suggest that the hijacked accounts included those of popular creators like Mike "Beeple" Winkelmann, Gary Vaynerchuk, the Nouns project, and luxury brand Louis Vuitton.
- As interest in NFTs decreased following the 2021 bull market, recent signs of life in the NFT market serve as a reminder for investors to exercise caution and vigilance when engaging in digital transactions, given the prevalence of crypto scams and the ongoing need for cybersecurity measures in the realm of technology, general-news, crime-and-justice, blockchain, Defi, and the crypto exchange landscape.
