Scams and ponzi schemes involving cryptocurrency and social media are nothing new.
Crypto fraudsters have previously used Instagram to launch ‘investment’ scams that others have fallen for, according to BleepingComputer.
However, this heinous case of a London-based crypto thief goes beyond the virtual sphere and relates the shocking story of real-life victims who were forced to pay the offender £34,000 in total.
A 21-year-old crypto thief has been sentenced to five years in prison.
Karim Hassan, 21, was sentenced to five years in jail by The Crown Court at Southwark in London on Wednesday, May 11th, for carrying out multiple cyber thefts and making fatal threats to his victims, according to a person familiar with the details of the case.
Hassan, a Maida Vale resident, would use Snapchat to communicate privately with customers wishing to trade cryptocurrencies for cash in person.
Hassan would ask consumers to meet him in his black Audi A6 to do these off-the-books transactions.
Customers were instructed to hand over their phones and digital wallets containing Bitcoin and crypto-assets once they were in the backseat of his automobile. Any hesitancy or denial on the part of the individual would quickly escalate into an ugly scene, with Hassan threatening them with heinous violence and even sexual assault.
One of the victims of the bootleg operation, Zain Hankin, video-called Hassan before meeting with him.
When Hankin refused to hand over his phone to Hassan, he was threatened with “doing something before I shove it in your neck,” according to the victim’s statement.
Hankin had no alternative but to hand over his crypto worth £20,000 to the perpetrator after being held at knifepoint in the Audi.
Despite the fact that Hankin had been accompanied to the meeting by a trusted friend who waited outside the car as Hankin sat alone in the backseat with Hassan, this is what happened.
Hankin’s friend even tapped on the driver’s window during the “purchase” to ask for a cigarette to make sure everything was okay, but Hankin couldn’t provide a distress signal in time because he was holding a knife.
After being threatened with a pocketknife, another victim, Abbas Mamuod, was forced to pay Hassan more than £10,000.
All involuntary transactions would be carried out via the victims’ smartphones, with their fingerprints serving as authorization.
Violence and rape threats accompanied the crypto theft.
Hassan would characterize himself as a “killer” who was “going to stab you in the neck” nonetheless since he was going to jail.
He allegedly went as far as physically attacking victims or threatening to cut off their fingers “one by one” if they refused to participate, according to a source acquainted with the situation who spoke to BleepingComputer last week.
The truth of these statements was further corroborated by a synopsis of the case published on Court News UK this week.
Abdullahi Goloid is one of the victims, claiming that he was driven to an underground parking lot and punched many times by Hassan and another male.
The criminals then terrified Goloid by threatening to tie him up, strip him naked, and rape him.
Goloid gave over £2,500 to Hassan after experiencing this tough episode of struggle.
This incident, however, sealed Hassan’s doom. Fortunately, Goloid took down the Audi’s license plate number and reported it to the cops.
Police officers noticed Hassan driving the vehicle a few days later and pulled him over for a search.
Not only did the defendant’s description match Goloid’s, but officers also found things stolen from a previous victim, including a credit card and a jacket.
This allowed the authorities to track down the victim listed on the credit card, who later positively identified Hassan as the offender on November 11th, 2021, two days after being robbed by him.
Although Hassan was frequently assisted by others in carrying out these crimes, he was the “primary mover” behind the online messaging app fraud.
On the surface, this may appear to be any other robbery, but the nature of the commodities stolen—cryptocurrencies in the vast majority of cases—made it extremely difficult for the prosecution to pursue the accused, according to our source.
It became impossible to establish a link between crypto transactions—showing money passing hands across wallets, or simply understanding and describing what was going on in a legal setting.
John Oliver, Hassan’s counsel, acknowledged the gravity of his client’s actions, citing Hassan’s “troubled family past” and having to “stand up to the role of family father from an early age.”
Hassan, a qualified chocolatier, became involved in illegal activity when the epidemic struck and he was laid off.
The case was presided over by His Honour Judge Martin Griffith, who informed the accused, “You are 21 years old and have managed to stay out of trouble. You’ve now scored a magnificent injury in connection with these offenses.”
“These are three high-profile robberies. They had been well arranged. Currency swaps attracted the victims.”
Hassan pleaded guilty to three charges of robbery, and the Court decided to sentence him to five years in prison.
Crypto thefts, such as the one carried out by Hassan, are handy since criminals no longer need to lead the victim to an ATM machine—funds may be taken directly from the victims’ smartphones as soon as they are in a somewhat isolated location.
And attackers can further obfuscate the trail of these activities by shifting stolen assets across various wallets under their control.
What would persuade someone to use dubious crypto ATMs like Hassan’s in a world where there are no shortages of online cryptocurrency exchanges, Bitcoin ATMs, and new crypto enterprises cropping up every other day? After being directed there by an unidentified Snapchat account.
People that experiment with dangerous crypto transactions may put themselves at a disadvantage and be hesitant to report crimes against them for fear of self-incrimination.
Increasing “crypto muggings” have harmed many people.
A study released this week by The Guardian reveals an increase in “crypto muggings” in London, in which crooks seize the phones of digital investors on the street and steal thousands of pounds from their crypto wallets.
A Coinbase user’s £5,000 wallet was emptied while they were calling an Uber near a prominent City of London train station, a man approached by cocaine street dealers and lost his £6,000 worth of Ripple and other digital assets to them, and a third victim who was vomiting under a bridge when a mugger coerced him into unlocking his phone and transferring £28,700 worth of cryptocurrency.
Such shocking occurrences serve as a reminder to be aware of your surroundings and those around you when carrying bitcoin, which is similar to carrying physical cash.
When you’re ready to enter a situation like Hassan’s, it’s also a good idea to keep your family and friends informed of your whereabouts and to use your smartphone camera frequently to preserve visual proof.
Police officers are being trained on a variety of crypto-related offenses, according to Phil Ariss of the National Police Chiefs’ Council’s cybercrime program, who oversees the crypto team. Ariss also advised people to use caution when evaluating their digital assets.
“You wouldn’t count your £50 notes while walking along the street. People with crypto assets should be aware of this “he said.
