Cryptocurrency Theft and Sentencing
A young man from Hamilton, implicated in one of Canada’s largest cryptocurrency thefts, has received a one-year prison sentence in the United States due to involvement in a separate scam that defrauded victims of $1 million. Now in his early twenties and protected from public identification by Canada’s Youth Criminal Justice Act, he was convicted of conducting a fraudulent scheme in 2022 that targeted approximately 200 victims—all while awaiting trial for his previous crime.
Notorious Crypto Heist
At just 17, the individual orchestrated a notorious $48 million crypto heist by using a SIM swapping method to gain control over the accounts of American entrepreneur Josh Jones. This method enabled him to impersonate Jones and trick the telecom company into transferring the entrepreneur’s phone number to a new SIM card. With access to two-step verification codes, he drained Jones’ cryptocurrency wallet and laundered the illicitly obtained funds.
“The investigation into the theft was aided by a significant clue: shortly after committing the crime, he purchased the PlayStation username ‘God’ using stolen Bitcoin, which eventually led authorities to discover a PlayStation console in his residence.”
Return to Fraudulent Activities
Despite a publicly issued apology and a commitment to reform, recent court documents indicate that he quickly returned to fraudulent activities after being released on bail. US prosecutors have described him as a “serial online fraudster” who continues to engage in criminal enterprise, while his defense team argues that psychological issues stemming from his youth and a desire for affirmation in online communities have influenced his actions.
During his latest criminal endeavors, he and accomplices tricked employees at social media platform X into granting access to prominent user accounts. They leveraged this access to promote fraudulent cryptocurrency raffles, siphoning funds from unsuspecting users through phishing websites.
Mental Health and Sentencing
Authorities noted that his recent legal troubles were compounded by ongoing mental health challenges and substance abuse issues stemming from his time in juvenile detention. As part of his sentencing in Virginia, he has been ordered to pay $320,000 in restitution as well as a fine of $83,000. His attorney, Stuart Sears, conveyed that his client has gained an understanding of the harm caused by his actions, stating that he is “painfully aware of the errors in his judgment.” After completing his sentence in the US, it is anticipated that he will be deported back to Canada.
Escalating Threats in Cryptocurrency
In a related incident emphasizing the dangers in the digital asset space, another cryptocurrency investor recently suffered a loss of $3.05 million in Tether (USDT) due to a phishing scam. This case, highlighted by blockchain analytics firm Lookonchain, illustrates the escalation of threats targeting cryptocurrency holders. Notably, the attacker exploited a common behavior among crypto users who often verify only the beginning and the end of a wallet address, neglecting the vital information in the middle.
The risks in the cryptocurrency market are significant, as highlighted by the data from CertiK, which reported over $2.2 billion lost to hacking, fraud, and breaches in the first half of 2025 alone. In particular, incidents involving wallet compromises accounted for $1.7 billion in losses across 34 events, while phishing scams caused more than $410 million in losses from 132 different attacks.
