Coinbase Scam Artist Arrested After Stealing $16M From 100 Users

A 23-year-old in Brooklyn has been arrested over allegations that he stole nearly $16 million from about 100 users of the cryptocurrency exchange Coinbase.

Ronald Spektor allegedly contacted users claiming to be a Coinbase employee. Prosecutors released a statement detailing the case. They claim he scammed the users by telling them their assets were at risk and had to be moved to a new wallet.

The users unwittingly moved their crypto assets to a wallet that they were led to believe was under their sole control, but was actually accessible by Spektor.

After gaining access to the funds, he allegedly swapped them multiple times through different crypto exchanges until they were eventually consolidated at “cash-out points” where they could be converted. Prosecutors say that large portions of the stolen assets were sent to crypto gambling sites.

He allegedly bragged about his exploits on Telegram, using the handle @lolimfeelingevil. The investigation also uncovered encrypted messages on Discord where he admitted to losing as much as $6 million gambling.

Prosecutors stated that they have only been able to recover $105,000 in cash and $400,000 in cryptocurrency of the stolen funds, but are working to recover the remaining missing funds.

Spektor’s Attorney Says His Client is Innocent

Despite prosecutors claiming to have recovered extensive incriminating evidence from Spektor’s online accounts and iPhone, his attorney said his client has pleaded not guilty.

Attorney Todd Spodek told Business Insider, “Mr. Spektor has pleaded not guilty. We’re working to secure his release early next week and will challenge the charges in court.”

Spodek has previously represented others accused of running similar scams, including Jay Manzini, who was jailed seven years last for stealing $8 million.

Spektor is facing a 31-count indictment, which includes charges of first-degree grand larceny, first-degree money laundering, scheme to defraud, and other related offenses. The top charges carry a maximum prison sentence of 25 years.

Rise in Social Engineering Scams

Investigators interviewed around 70 of the victims who detailed how the scam operated. A Pennsylvania man recalled receiving a phone call in September 2024 from an individual claiming to be “Fred Wilson” from Coinbase’s security department.

He was informed that there had been a suspicious attempt to move cryptocurrency from his account. Immediately before receiving the call, the victim had received multiple spoofed two-factor authentication text messages from Coinbase and Google, which helped trick him into believing his username and password had been compromised. He lost approximately $53,150 worth of cryptocurrency. 

Another user lost $6 million, and a California resident lost $1 million. The District Attorney offered the following tips to avoid falling victim to scams:

• Use strong account protections, like two-factor authentication or security keys, where available.
• Coinbase and most other companies will never call customers or ask to transfer crypto to a “safe wallet.”
• Don’t trust caller ID, sender names, or lookalike domains that can be spoofed.
• Only contact Coinbase and other companies through in-app support channels.
• Slow down. Scammers rely on urgency and pressure. Verify independently, consult with others, and don’t move money in a rush.

Many have fallen victim to similar scams. Catena Media co-founder Erik Bergman lost $1.25 million to scam artists posing as MrBeast and other celebrities to elicit the funds.

Bergman took to social media to detail his experience, hoping it would help others avoid falling victim to similar schemes. In the video shared on YouTube, the Swedish entrepreneur said, “I feel so stupid, and so ashamed. At the same time, it feels important to share my story.”

Posing as security personnel or police is a common tactic used by scam artists to deceive victims. In the UK, four men were jailed for posing as detectives and offering compensation to victims of fraud.

Brooklyn District Attorney Eric Gonzalez said his office will continue to fight against scam artists to protect the public. Gonzalez stated, “My office is committed to making sure that Brooklyn never becomes a hub for online scams, and we will continue to root out every instance of cryptocurrency fraud, which is a serious problem that’s been exploding throughout the country. We will investigate offenders using the latest technology, freeze their assets whenever possible, and assist the victims.”