Brooklyn Resident Accused of Embezzling $16 Million in Cryptocurrency from 100 Coinbase Customers

A 23-year-old resident of Brooklyn has been accused of stealing approximately $16 million in cryptocurrency from around 100 Coinbase users through an alleged phishing and social engineering operation, according to prosecutors on Friday.

Key Takeaways:

• Prosecutors allege that a Brooklyn individual embezzled about $16M in cryptocurrency by impersonating a Coinbase employee.
• The purported scheme utilized social engineering techniques, with funds laundered via mixers, swaps, and cryptocurrency gambling platforms.
• Authorities have confiscated some assets, established bail at $500,000, and stated that efforts to recover additional funds are ongoing.

As reported by the Brooklyn District Attorney’s Office, Ronald Spektor impersonated a Coinbase representative and reached out to victims under the false pretense that their digital assets were in imminent danger.

By leveraging this assertion, Spektor allegedly coerced users into transferring cryptocurrency to wallets that he controlled.

Alleged Crypto Scammer Employed Panic Strategies to Target Victims

Prosecutors indicated that Spektor operated online under the pseudonym “lolimfeelingevil” and employed traditional social engineering methods instead of technical hacks.

Victims were warned that their funds could be compromised by hackers unless they acted swiftly, a tactic that authorities claim was designed to circumvent skepticism and incite panic-driven actions.

After the cryptocurrency was transferred, Spektor allegedly sought to conceal the trail of funds by directing assets through cryptocurrency mixers, token-swapping services, and gambling sites.

Investigators noted that these actions were aimed at complicating recovery efforts and obscuring the source of the stolen assets.

Spektor was arraigned on Friday on 31 counts, including first-degree grand larceny, first-degree money laundering, and involvement in a fraudulent scheme.

These charges stem from a year-long investigation conducted by the Brooklyn District Attorney’s Office.

As part of the inquiry, authorities seized around $105,000 in cash and approximately $400,000 in digital assets.

Prosecutors mentioned that efforts are still underway to recover further funds believed to be associated with the alleged operation.

Investigators also highlighted Spektor’s online behavior as evidence. Prosecutors stated he “openly bragged about his heists” in a Telegram channel named “Blockchain enemies.”

In retrieved messages, Spektor allegedly claimed to have lost $6 million in cryptocurrency through gambling, providing a rare insight into how the stolen assets may have been managed post-theft.

Spektor resides with his father in Sheepshead Bay, Brooklyn, according to prosecutors.

A judge set bail at $500,000, as reported by ABC7 New York, and denied a request for Spektor’s father to post bond, citing concerns regarding the source of the funds.

One victim reportedly reached out to blockchain investigator ZachXBT, who published an investigation last year regarding the alleged scam. According to that report, the individual claimed to have lost $6 million.

I am pleased to share that the threat actor ‘Ronald Spektor’ (Ron) was recently arrested in New York.
In November 2024 I published my investigation detailing his involvement in a $6M Coinbase support impersonation scam and other thefts after a victim contacted me for… pic.twitter.com/ZitEV4nrIS

— ZachXBT (@zachxbt) December 15, 2025

Coinbase Security Issues Resurface Following $400M Data Breach Disclosure

This case arises as Coinbase continues to encounter scrutiny regarding user security.

Earlier this year, the exchange revealed a data breach affecting nearly 70,000 users, estimating losses at around $400 million.

Coinbase stated it reimbursed impacted customers and enhanced internal controls following the incident.

Spektor resides with his father in Sheepshead Bay, Brooklyn, according to prosecutors.

A judge set bail at $500,000, as reported by ABC7 New York, and denied a request for Spektor’s father to post bond, citing concerns regarding the source of the funds.

Coinbase indicated that it collaborated closely with the Brooklyn District Attorney’s Office and its Virtual Currency Unit throughout the investigation.

In a blog post, the exchange mentioned that it assisted in identifying both the suspect and victims, shared on-chain data linked to the alleged scheme, and aided authorities in tracing the stolen assets.

The post Brooklyn Man Charged With Stealing $16M in Crypto From 100 Coinbase Users appeared first on Cryptonews.