19-Year-Old Faces Decades in Prison After Pleading Guilty to $245M Bitcoin Heist - Government Fears He Might Flee

Teen Admits to Role in $245 Million Bitcoin Scam

Veer Chatel, a 19-year-old, has pleaded guilty to conspiracy to commit wire fraud and conspiracy to launder monetary instruments. This comes in connection with a sophisticated social engineering attack that led to a victim losing approximately $245 million in Bitcoin.

The Heist: How It Went Down

The scam involved tricking victims into leaking their private keys via a screensharing service. Funds were then transferred from the Gemini exchange to a compromised wallet. On-chain detective ZachXBT played a key role in uncovering the details of the heist.

3/ Here is a private video recording showing the live reaction by multiple of the threat actors to receiving $238M.

Theft txn hash 4064 BTC - Aug 19 at 4:05 am UTC 4b277ba298830ea538086114803b9487558bb093b5083e383e94db687fbe9090 pic.twitter.com/djSxBTkOF8

— ZachXBT (@zachxbt) September 19, 2024

Luxury Lifestyle Funded by Stolen Crypto

Chatel and his co-conspirators, Malone Lam and Jeandiel Serrano, lived lavishly with the stolen funds. Purchases included watches, designer clothes, and multiple cars. The FBI found $37 million in stolen crypto during a search of Chatel's house.

Government Opposes Release Ahead of Sentencing

The U.S. government is opposing Chatel's release before sentencing, fearing his co-conspirators might help him flee to avoid testifying against them. Chatel faces 19.5 to 24.5 years in prison and a potential fine of $50,000 to $500,000.

Broader Implications

This case highlights the risks of social engineering attacks in the crypto space. With 14 other individuals charged in connection to the heist, it's clear that such scams often involve multiple actors.