A man based in Connecticut, U.S., has been sentenced to 12 months and one day in prison for fraud and money laundering offenses. Michael Richo ran an online phishing scam in which he was able to steal Bitcoin from a number of people.
Richo’s scam involved creating fake login pages for various online crypto trading platforms. He posted links to these on forums located on the dark web, and was able to obtain the login details of a large number of people. When they made new deposits of BTC into their account, the 37-year old would withdraw them into his own wallet before they could be spent.
Richo sold the stolen Bitcoin (BTC), and made a total of over $365,000. Over 10,000 stolen usernames and passwords were found on his computer by the FBI, after he was first arrested back in October 2016. Richo plead guilty to two of the counts in June 2017.
As well as the jail time, the judge also ordered Richo to pay a $10,000 fine and to forfeit various computers and electronic devices, as well as an assortment of precious coins and metals that he bought with the proceeds of his offense, and $352,500 in cash.
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