Coinbase Impersonator Sentenced to Up to 12 Years for $16 Million Cryptocurrency Fraud

Approximately $16 Million Stolen from About 100 Coinbase Users

A court in Brooklyn, New York, sentenced Ronald Spector (23), who impersonated a Coinbase employee and stole approximately $16 million (about 2.5 billion yen) worth of cryptocurrency from about 100 users, to a prison term of 4 to 12 years.

SENTENCING: Brooklyn Man Sentenced to up to 12 Years in Prison for Stealing Nearly $16 Million in Fraudulent Cryptocurrency Scheme https://t.co/uKNbHAYk2k

--- Brooklyn District Attorney Eric Gonzalez (@BrooklynDA) September 23, 2026

Japanese Translation:
Sentencing: A Brooklyn man was sentenced to up to 12 years in prison for stealing approximately $16 million in cryptocurrency fraud.

Spector lured users with fake security alerts and had them transfer assets to a wallet he could access. The total amount of damage reached $15,944,000, with some victims losing over $1 million (about 157 million yen).

Admitted Guilty to All 31 Charges, Ordered to Pay Approximately $16 Million in Damages

Spector, who lived in Sheepshead Bay, Brooklyn, pleaded guilty to all 31 charges, including first-degree grand larceny, first-degree money laundering, and first-degree possession of stolen property, on September 2.

On September 23, 2026 (Wednesday), Judge Danny K. Chun of the Brooklyn Supreme Court sentenced him to 4 to 12 years in prison. The prosecution had sought a sentence of 7 to 21 years. The court also ordered the forfeiture of over $500,000 (about 7.8 million yen) in cash and cryptocurrency, and to pay approximately $16 million in restitution. At the time of his arrest, $105,000 (about 1.6 million yen) in cash and cryptocurrency worth about $400,000 (about 6.3 million yen) were also seized.

The crime was not based on advanced hacking but rather on social engineering by impersonating a Coinbase representative. According to reports, victims first received a barrage of phone alerts, followed by emails stating that a call from the exchange would follow. Spector explained over the phone that assets were at risk due to hackers and urged them to move their cryptocurrency to a secure wallet.

Victims believed they were sending funds to a wallet they could manage alone, but in reality, Spector also had access and siphoned off the funds.

Funds Moved Across Multiple Exchanges, Boasted About Crimes on Telegram

The stolen funds were repeatedly exchanged across multiple cryptocurrency exchanges before being moved to locations the prosecution referred to as "cash-out points." There, they were converted into other tokens, cash, or gift cards, with much of the money flowing into gambling services and online stores.

Investigators linked Spector's home IP address to multiple wallets associated with the stolen funds through transaction records, blockchain analysis, digital forensics, and evidence seized under search warrants.

The defendant operated a Telegram channel called "Blockchain Enemies" and spoke about his thefts under the handle "@lolimfeelingevil." He also sought collaborators through online forums, and recovered messages indicated he had lost $6 million (about 945 million yen) in cryptocurrency gambling.

As suspicions about him spread online, he swapped out hardware wallets and instructed collaborators to do the same. He traveled across the U.S. by bus for several months and considered relocating to Mexico or Canada, but was ultimately arrested upon returning to Brooklyn.

Brooklyn District Attorney Eric Gonzalez stated, "No matter where digital traces lead, we will track them down," issuing a warning to fraudsters.

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