Hebron Resident Accused of Laundering Millions From Stolen Credit Cards With Bitcoin

Hebron Resident Accused of Laundering Millions From Stolen Credit Cards With Bitcoin

The Tel Aviv District Court has received today an indictment against Halmi Git, a 33-year-old from the Palestinian city of Hebron, for a wide-ranging affair involving the management of forums for the sharing and sale of stolen credit card details. His forums have allegedly involved about 1,300,000 users from around the world, leading to massive fraud.

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Stealing Even From the Moon

Hebron Resident Accused of Laundering Millions From Stolen Credit Cards With Bitcoin

According to the indictment, the defendant established the forums in 2008 and managed them until his arrest at the beginning of the month. The entrance to the forums was free of charge, but users could purchase a VIP status to receive stolen details of “fresh” credit cards, which are more likely to be still working. Additionally he published manuals and guides that provided information and tools on how to commit various computer offenses, remotely hacking computers and taking over remote computers or servers.

Halmi also allegedly committed crimes of fraud against users of his own forums. The defendant would offer selling cell phones at discounted prices, but once a user transferred him money he would block the user from the site and take his money without providing compensation. He would then publish a message, supposedly in the name of the deceived user, in which he thanked the defendant for providing the cheap mobile phone.

Apparently trying to convince investigators his actions were not motivated by specific malice towards Israelis, many of which were his alleged victims, Halmi is quoted as saying: “We are thieves, from wherever we can take money, we will take it – it does not matter where, from Israel, the US or even the moon, we will reach it and use it.”

1,071 BTC Seized

Hebron Resident Accused of Laundering Millions From Stolen Credit Cards With BitcoinAccording to the indictment, the defendant demanded that all payments to him be made through Bitcoin, to make it more difficult to locate him. In addition, Halmi acted consistently to disguise his identity by technological means, made many money transfers between different Bitcoin wallets for the purpose of covering his tracks, used online masking services to distance himself from his various accounts, and recorded parts of his property in the name of his relatives.

The Israeli State Prosecutor’s Office attributes to the defendant money laundering of at least 1,071 BTC, estimated at NIS 31,000,000. During the interrogation, in a precedent-setting move, the defendant’s Bitcoin wallet was seized and the amount found in it was transferred to a police wallet. The State Prosecutor’s Office intends to confiscate all the contents of the defendant’s Bitcoin wallets, if and when he is convicted. The case was investigated by investigators of the Israeli national cyber unit at Lahav 433.

The offenses with which Halmi is charged are: credit card fraud under aggravated circumstances (multiple offenses), receiving a thing fraudulently under aggravated circumstances, providing means for committing a crime, violating the Computers Law and money laundering.

What should be the punishment for such an alleged crime? Share your thoughts in the comments section below. 


Images courtesy of Shutterstock.


Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics.

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Alleged British Bitcoin Scammer Extradited to US for Defrauding Over $36 Million

Alleged British Bitcoin Scammer Extradited to US for Defrauding Over $36 Million

The FBI has announced on Friday that Renwick Haddow, a 49-year old UK national, has been extradited to the US from Morocco to face charges at the Southern District Court of New York. He is accused of defrauding more than $36 million from victims by making material misrepresentations and misappropriating investment funds in two companies, Bitcoin Store and Bar Works.

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Fake Bitcoin Broker Extradited

Alleged British Bitcoin Scammer Extradited to US for Defrauding Over $36 MillionHaddow was arrested in Morocco under a provisional arrest warrant in July 2017 after the SEC filed fraud charges against him. He allegedly used sales representatives to cold call potential investors and sell securities in the two companies he controlled while hiding his involvement due to his shady past.

According to the SEC’s complaint, promotional materials presented to investors in both companies showcased senior executives who did not really exist, and misrepresented other key facts about the operations. Haddow allegedly diverted more than 80% of the in funds raised for Bitcoin Store, and sent more than $4 million from the Bar Works bank accounts to Mauritius and another $1 million to Morocco.

Up to 40 Years in Jail

Alleged British Bitcoin Scammer Extradited to US for Defrauding Over $36 MillionThe materials presented to Bitcoin Store investors claimed it was “an easy-to-use and secure way of holding and trading Bitcoin” and had generated several million dollars in gross sales. However, the SEC alleges that this company has never had any real operations nor generated the gross sales claimed. In 2015, for example, Bitcoin Store’s bank accounts allegedly received less than $250,000 in incoming transfers, none of which appear to come from paying customers. Haddow adopted the alias “Jonathan Black” to hide his involvement and falsely claimed an extensive background in finance.

“As alleged in our complaint, Haddow created two trendy companies and misled investors into believing that highly-qualified executives were leading them to quick profitability.  In reality, Haddow controlled the companies from behind the scenes and they were far from profitable,” Andrew M. Calamari, Director of the SEC’s New York Regional Office, explained as the time.

Haddow has now been charged with two counts of wire fraud, each carrying a maximum sentence of twenty years in prison.

Should the US act as the world’s bitcoin policeman? Share your thoughts in the comments section below. 


Images courtesy of Shutterstock.


Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics.

The post Alleged British Bitcoin Scammer Extradited to US for Defrauding Over $36 Million appeared first on Bitcoin News.