A man from Hamilton has been sentenced to one year in the United States after admitting to a series of cryptocurrency thefts in 2022 that targeted approximately 200 individuals and resulted in over $1 million in Canadian dollars. These latest crimes were committed while he was on bail for a previous offense he committed as a teenager, where he stole $48 million from a single person in a single day, marking one of the most substantial thefts in Canadian history.
According to U.S. prosecutors, the man engaged in a pattern of online fraud, earning him the label of a “serial online fraudster” who delved into the realm of cybercrime. His defense team in the U.S. portrayed him as someone who found solace and recognition in the online world due to a tumultuous upbringing in Ontario, characterizing him as a psychologically vulnerable teenager seeking acceptance and validation through virtual connections.
The individual in question, who cannot be named due to being charged and convicted as a minor in Canada for the 2020 theft, was 17 when he stole the $48 million in cryptocurrencies from an American entrepreneur named Josh Jones.
In a court session in Hamilton in 2022, Crown attorney Fraser McCracken detailed how the theft was executed using a SIM swap technique. By convincing Jones’s cellphone provider to change the SIM card attached to Jones’s phone number, the teen redirected texts, including those for two-step authentication, to himself. This allowed him to alter passwords and access accounts, including Jones’s online wallet containing millions of dollars worth of cryptocurrency, most of which remains unaccounted for.
Following the discovery of the theft, a joint investigation was launched by the U.S. Federal Bureau of Investigation (FBI) and Hamilton police. The purchase of a sought-after username, “God,” using bitcoin traced back to the stolen cryptocurrency, served as a key clue linking the teenager to the crime. Subsequently, a search of the teen’s residence led to the recovery of a PlayStation console associated with the purchased username.
Despite expressing remorse in court, the teenager continued his criminal activities, orchestrating additional schemes while on bail in Hamilton. Teaming up with others, he engaged in fraudulent practices targeting users to gain control of popular accounts and deceive followers into divulging information for illicit purposes.
As part of his U.S. sentence, the individual was mandated to reimburse approximately $320,000 Canadian dollars to cover losses incurred by some victims and pay a fine of nearly $83,000. Upon his release from imprisonment, he is expected to be deported back to Canada, with his defense lawyer emphasizing his client’s newfound awareness of the consequences of his actions and the need for a different path moving forward.