Twelve people have been charged by the US DOJ for a $263 million crypto theft connected to the Genesis case.
By Parth Dubey
Editor Hamza Tariq
Updated
3 mins read
The US Department of Justice (DOJ) has charged twelve people with a large-scale crypto fraud operation involving more than $263 million in stolen digital assets. The suspects are linked to an earlier case involving a Genesis creditor. The scammers allegedly siphoned $243 million of digital assets in that case.
The Department of Justice’s press release said the suspects, including both U.S. and foreign nationals, were arrested this week in California. The charges against them include racketeering, wire fraud, money laundering, and obstruction of justice. These charges stem from a 2024 incident in which a group of scammers tricked a creditor of the now-defunct trading firm Genesis.
The scammers used social engineering tactics to impersonate and mislead the creditor and gained access to sensitive accounts. According to information shared by blockchain investigator ZachXBT, the group stole $243 million in digital assets from the creditor.
Update: Today twelve people were charged for the $243M Genesis creditor theft.
Aakaash Anand was featured in the clip on 6/ laundering funds for Veer/Wiz. pic.twitter.com/lKUOm5sqK4
— ZachXBT (@zachxbt) May 15, 2025
Notably, the stolen crypto was later funneled through mixing services, tools used to hide the source and movement of cryptocurrency. These mixers help break the trail of funds on the blockchain, making it harder for law enforcement to trace the money.
The Justice Department described the group’s activities as a coordinated conspiracy. In addition to the financial crimes, some of those charged were also involved in physical home break-ins related to the thefts. Officials have said this case reflects the growing links between cyber fraud and real-world crime.
It is worth noting that this comes on the heels of another major breach in the crypto world. Hackers recently targeted LockBit, a ransomware group. The exploit leaked more than 60,000 Bitcoin wallet addresses tied to the gang.
On the same day the US DOJ released the charges, crypto exchange Coinbase disclosed a major security issue involving its overseas staff. According to the exchange, scammers bribed certain employees into handing over access to confidential user data.
This breach exposed sensitive information and may have helped scammers target users in the fraud scheme. Coinbase said it plans to compensate any affected users and has set aside a voluntary payment range between $180 million and $400 million, and has also announced a $20 million reward for information about those behind the extortion.
The company did not reveal how many users were affected but acknowledged that the data leak was insignificant.
Similarly, Binance recently suspended an employee suspected of insider trading. Binance confirmed that it is cooperating fully with authorities in the employee’s jurisdiction to support ongoing legal action.
Based on general perception, this incident shows the persistent danger of insider involvement in crypto scams and fraud. In addition, as cases of digital theft increase, authorities warn that scammers are becoming more sophisticated.
The Justice Department emphasized that investigations like this demonstrate law enforcement’s commitment to keeping pace with crypto crime and holding offenders accountable. In line with this, the DOJ requested a 20-year prison sentence for Alex Mashinsky, the former CEO of Celsius for market manipulation. However, Mashinsky received only a 12-year sentence earlier this month.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
