US charges 5 for multibillion-dollar crypto hacking operation

US federal prosecutors have filed charges against five individuals accused of conducting a complex phishing and hacking operation targeting employees of companies across the country.

According to authorities, the scheme led to the theft of intellectual property, sensitive corporate data and millions of dollars in cryptocurrency, including $6.3 million stolen from a single victim.

Details of the alleged regime

The alleged operation, which lasted nearly two years from September 2021 to April 2023, used deceptive tactics to obtain login credentials and gain unauthorized access to corporate systems and cryptocurrency wallets.

Court documents reveal that the defendants used mass text messages as their primary method of deceiving victims. These phishing messages were created to appear as urgent company alerts to employees or service providers warning that their accounts were at risk of being deactivated.

Recipients were directed to fake websites designed to look like legitimate corporate portals. Unsuspecting employees who entered their credentials on these websites provided hackers with the information needed to breach internal systems.

Prosecutors allege the stolen data, which included intellectual property and personally identifiable information such as account credentials and email addresses, was used to access crypto accounts and steal millions in virtual assets.

Arrests and charges

The defendants have been identified as Ahmed Hossam Eldin Elbadawy, 23, of College Station, Texas; Noah Michael Urban, 20, of Palm Coast, Florida; Evans Onyeaka Osiebo, 20, of Dallas, Texas; Joel Martin Evans, 25, of Jacksonville, North Carolina; and Tyler Robert Buchanan, 22, of the United Kingdom.

They face multiple charges including conspiracy to commit wire fraud, conspiracy, wire fraud and aggravated identity theft. If convicted, the group faces up to 20 years in federal prison on conspiracy and wire fraud charges and a mandatory two-year sentence on identity theft.

“This group of cybercriminals executed a sophisticated scheme to steal intellectual property and personal data worth tens of millions,” said US Attorney Martin Estrada.

He urged the public to be vigilant, warning that phishing and hacking tactics are becoming increasingly sophisticated.

FBI Deputy Director Akil Davis emphasized the scale of the crime, noting that the defendants took advantage of victims’ trust to steal sensitive data and cryptocurrency.

Phishing schemes have become increasingly common in crypto, with many people falling victim this year. Scam Sniffer’s February report highlighted that many of these exploits originated in X, where spoofed accounts posted misleading comments to lure users to fake sites.

In one notable case from October, a crypto investor lost $36 million in crypto. Security experts identified it as a “fishing permit scam,” in which the attacker tricked the victim into signing a malicious signature. This action granted them full access to the investor’s funds.

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