Massachusetts prosecutors seek 110,270 USDT over alleged Coinbase phishing theft of 33.7 bitcoin
Bitcoin.com News reports that fake Coinbase texts preceded the theft of 33.7 bitcoin, about $900,000, and that Massachusetts prosecutors seek to forfeit 110,270 USDT traced to a Binance account.
Why it matters
Civil forfeiture lets the government seek legal ownership of property it alleges is tied to a crime, and prosecutors are asking for 110,270 USDT sitting in a Binance account rather than for the 33.7 bitcoin itself. Both Coinbase and Binance are named in a federal complaint about spoofed text messages, with the theft routed through a single Coinbase account that held two wallets. The filing rests on one outlet, so its wider effect cannot be assessed from this evidence set.
Key facts
Bitcoin.com News reports that 33.7 bitcoin was stolen from two wallets held in one Coinbase account after texts falsely appearing to come from Coinbase.
33.7 BTCReported by Bitcoin.com News
The stolen bitcoin was worth approximately $900,000 at the time of the theft.
900,000 USDReported by Bitcoin.com News
The two wallets held bitcoin belonging to a beneficiary and a family trust.
Reported by Bitcoin.com News
Investigators traced 11.2 of the stolen bitcoin to an account at Binance.
11.2 BTCReported by Bitcoin.com News
Prosecutors seek forfeiture of 110,270 USDT seized from that Binance account.
110,270 USDTReported by Bitcoin.com News
The U.S. Attorney's Office for the District of Massachusetts announced a civil forfeiture action on Sept. 28 to recover cryptocurrency seized from a Binance account.
Reported by Bitcoin.com News
The fraudulent texts arrived on June 1 and 2, 2023, while the beneficiary was emailing Coinbase about creating a separate account for the trust.
Reported by Bitcoin.com News
FBI Special Agent Connor Jorde described the texts in an affidavit attached to the forfeiture complaint.
Reported by Bitcoin.com News
What happened
Bitcoin.com News reports that a beneficiary of a Massachusetts family trust sent account details after receiving fraudulent texts that falsely appeared to come from Coinbase, and that 33.7 bitcoin was then taken from two wallets inside one Coinbase account, worth approximately $900,000 at the time of the theft. The U.S. Attorney's Office for the District of Massachusetts announced a civil forfeiture action on Sept. 28 to recover cryptocurrency seized from a Binance account, and investigators traced 11.2 of the stolen bitcoin to that account. Prosecutors seek forfeiture of 110,270 USDT held there. The beneficiary was exchanging emails with Coinbase about creating a separate account for the trust when the texts arrived on June 1 and 2, 2023, and at that point the beneficiary and the trust had separate wallets inside a single Coinbase account held by the beneficiary, according to the article. FBI Special Agent Connor Jorde described the texts in an affidavit attached to the complaint, though the article quotes only the opening of that affidavit. Every claim comes from prosecutor allegations as reported by one outlet, and the article notes no response from Coinbase or Binance.
How the story developed
- First report
First report by Bitcoin.com News
Fake Coinbase Texts Led to $900K Bitcoin Theft, US Seeks Seized Crypto
- Update
Fraudulent texts arrive while beneficiary emails Coinbase about the trust
Texts falsely appearing to come from Coinbase reached the beneficiary on June 1 and 2, 2023, during email exchanges about opening a separate account for a Massachusetts family trust.
- Official statement
Massachusetts prosecutors announce civil forfeiture action
The U.S. Attorney's Office for the District of Massachusetts said on Sept. 28 it filed a civil forfeiture complaint seeking 110,270 USDT seized from a Binance account to which investigators traced 11.2 of the stolen bitcoin.
- Update
Bitcoin.com News reports the forfeiture complaint
The article describes the complaint, the two wallets in one Coinbase account and FBI Special Agent Connor Jorde's affidavit.
Affected entities
Also mentioned: Monero, Nasdaq
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| Bitcoin.com News Company, official | Fake Coinbase Texts Led to $900K Bitcoin Theft, US Seeks Seized Crypto | Original |
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