Brooklyn Man Charged in $16 Million Cryptocurrency Scam
A 29-year-old Brooklyn man has been charged with orchestrating a sophisticated cryptocurrency scam that defrauded approximately 100 victims out of nearly $16 million. Ronald Spector is accused of running a nationwide scheme from his Sheepshead Bay apartment, prosecutors revealed Friday.
According to Brooklyn District Attorney Eric Gonzalez, between April 2023 and December 2024, Spector exploited digital technology to carry out the fraud. Using the online screen name “lol. I’m feeling evil,” Spector allegedly recruited accomplices and employed bots to send mass text messages to Coinbase users. These messages falsely warned recipients that their accounts were being hacked, prompting victims to take immediate action.
Unbeknownst to the victims, the alarming alerts originated from Spector himself. Prosecutors say he created the cryptocurrency wallets linked to the fraudulent messages, granting him access to the seed phrases – crucial codes that control wallet access. Once victims transferred their digital assets, Spector was able to swiftly steal the funds.
An indictment announced Friday lists 31 counts against Spector, including first-degree grand larceny, money laundering, and multiple fraud-related charges. Investigators discovered that Spector used at least 12 separate digital wallets to move the stolen cryptocurrency and maintained tens of thousands of email addresses and passwords connected to the scheme. One wallet alone was used to make around 29,000 transactions.
Among the reported losses is a single case from October 2024, where a California resident was defrauded of $6 million in crypto assets.
During a court appearance Friday, Spector pleaded not guilty to all charges. A prosecutor stated the case reflects “user-initiated” actions, emphasizing there are controls in place with no allegations that Spector himself moved others’ cryptocurrencies directly. Nevertheless, the DA’s office has recovered only about $500,000 so far, with the investigation ongoing and optimistic about recovering more assets.
“I am reviewing everything,” said Spector’s attorney in court. “We are disputing all allegations and intend to address them appropriately.”
Eyewitness News reporter Darla Miles covered the story from downtown Brooklyn, where the investigation continues.
The case highlights growing concerns over cryptocurrency security and the expanding threat of online financial scams across the country. Authorities urge users to exercise caution and verify the authenticity of unsolicited security alerts.