US hacker sentenced to 20 years in prison for $37 million crypto theft

On October 2, 2024By Rgal Nv

Evan Frederick Light, a 21-year-old US citizen, faces 20 years in prison after stealing $37 million in crypto from an investment company located in Sioux Falls, Dakota.

Fredrick clashed with the US Department of Justice after being arrested for his financial crimes.

The U.S. Department of Justice announced in a press release that Fredrick was charged with conspiracy to commit wire fraud and conspiracy to launder monetary instruments.

“According to court documents, in February 2022, Light was involved in a cyber intrusion involving an investment holding company located in Sioux Falls, South Dakota. During the cyber intrusion, Light stole customers’ personally identifiable information (“PII”) and then stole cryptocurrency worth more than $37 million from nearly 600 victims. He acted with one or more unidentified perpetrators.

Specifically, during the cyber intrusion, Light accessed the identity of a real client of the investment holding company and illegally used that identity to infiltrate the investment holding company’s computer servers. After gaining access to the computer servers, he then exfiltrated the personal information of hundreds of other clients from the servers, using this access to steal virtual currencies from clients who held such assets with the investment holding company.

The stolen cryptocurrency, under Light’s control, was then routed to various locations around the world, including several mixing services and gambling sites to disguise its identity and hide the virtual currency. Light’s conduct took a toll on victims around the world, including in South Dakota. As a result of his conduct, the total loss was approximately $37 million.

The investigation was led by the FBI. The case is being prosecuted by Assistant United States Attorney Jeremy R. Jehangiri. The press release is read in several parts.

The US DOJ press release confirmed that the maximum penalty for each indictment is 20 years in custody and/or a fine, three years of supervised release, and a $200 special assessment to the Federal Emergency Relief Fund. victims of crime.

United States Attorney Alison J. Ramsdell commended the Federal Bureau of Investigation (FBI) for its efforts to combat cyber and financial crime. He particularly emphasized that the fight against cybercrime has become much more difficult with the introduction of digital assets.

He praised the fact that the guilty verdict demonstrates that the FBI, in conjunction with the legal system, will always work together to convict cybercriminals, no matter the complexity of their crimes.

Nairametrics reported yesterday that the crypto industry lost over $120 million to fraudsters in September. The previous August was even worse, with the industry witnessing a loss of over $300 million in digital assets in a series of events.

What you need to know

An FBI report released on September 9 found that Americans lost more than $5.6 billion to crypto scams in 2023.
In 2023, the FBI department received over 69,000 reports related to crypto scams. Bitcoin, Ethereum and Tether were the assets most targeted by fraudsters in the country.