Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
US authorities have charged Soufiance Oulahya, who is currently in custody in Morocco, with the theft of cryptocurrencies and NFTs valued at $450,000 from a victim in Manhattan by establishing a counterfeit OpenSea marketplace in 2021.
A statement from the United States Attorney’s Office Southern District of New York indicated that the defendant unlawfully acquired the victim’s seed phrase through spoofing and utilized it to misappropriate their digital art collection.
Case Overview
Oulahya took four NFTs from the victim’s OpenSea account, including one each from Bored Ape Yacht Club, Meebit, Bored Ape Kennel Club, and the Crypto Dad series. Additionally, the defendant also stole cryptocurrencies from the compromised wallet of the Manhattan victim. The indictment noted that the victim had invested approximately $448,923 to acquire these digital assets.
“As alleged, Soufiane Oulahyane employed a prevalent cybercrime method to steal cryptocurrency and NFTs from the victim. ‘Spoofing’ is one of the oldest tactics in the criminal arsenal. Oulahyane adapted this traditional technique for application in a new and evolving domain – the crypto space,” Attorney Damian Williams stated in the release.
As per the indictment, drafted by the US Department of Justice (DoJ) and the Federal Bureau of Investigation (FBI), Oulahyane utilized paid advertisements on a well-known search engine to lure the victim to the counterfeit OpenSea site.
Related Posts
Once the victim entered the seed phrase on the fraudulent website, it was sent to an email address controlled by Oulahyane, who then promptly accessed the victim’s wallet and transferred the NFTs and cryptocurrencies to his own wallet. The prosecutors have not disclosed the identity of the victim or the search engine where Oulahyane placed the advertisement.
ADVERTISEMENT
Increase in Cyber Attacks
Spoofing is among various social engineering tactics where cybercriminals execute malicious attacks by enticing and persuading potential victims to click on links, disclose passwords, download attachments, and more.
In April 2022, a Bored Ape Yacht Club owner was defrauded of BAYC #1584, MAYC #13168, and MAYC #13169 — valued at $570K in a swapping transaction on the Swap Kiwi platform. The scammer exploited inadequate verification and anti-spoofing measures in its checks to create counterfeit BAYC NFTs, which were merely photoshopped JPEGs.
In October 2022, the BNB Chain experienced a security breach that compromised cryptocurrencies worth millions. While efforts to freeze, recover, and normalize were ongoing, a new spoofing attack resulted in a loss of 60 ETH for the network.
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
