In a landmark case against cybercrime, U.S. prosecutors secured a guilty plea on Tuesday from Kunal Mehta, a 45-year-old Californian man, best known under the alias ‘Shrek’. Mehta admitted to conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act, as well as laundering at least $25 million in stolen cryptocurrency, according to the U.S. Department of Justice (DOJ).
The $263 Million Crypto Theft
Mehta was part of an organized cybercrime ring that stole $263 million worth of cryptocurrency from victims across the United States. As authorities revealed, the group engaged in sophisticated hacking techniques, including social engineering, to compromise databases and steal funds. Prosecutors highlighted that Mehta’s role primarily involved money laundering operations within this network.
The group laundered funds through cryptocurrency exchanges and mixers before indulging in a luxurious lifestyle. Their illicit gains went into purchasing high-end items such as designer handbags, jewelry, and exotic cars. Among the notable vehicles listed for forfeiture were seven Lamborghinis, three Ferraris, a Rolls Royce, and a McLaren.
Lavish Spending and Exotic Cars
According to prosecutors, Mehta attempted to disguise ownership of luxury vehicles by registering them in his name, thereby obscuring their true ownership. One instance detailed in court involved Mehta delivering a duffel bag with approximately $500,000 in cash to other members of the ring.
The DOJ has identified 13 co-defendants, charged in April, as part of a superseding indictment. Members ranged in age, with some as young as 18 years old. Mehta was the oldest participant, and five of the accused, including him, resided in California. The organization began operating in October 2023, assigning specific roles to different members, from hacking and target identification to physical burglary.
Prosecutors’ Commitment to Justice
U.S. Attorney Jeanine Ferris Pirro emphasized the Justice Department’s determination to tackle online fraud, stating, “We are committed to rooting out fraud and holding those responsible fully accountable. Kunal Mehta, along with his co-conspirators, stole hundreds of millions of dollars from victims.” Mehta’s guilty plea marks the eighth admission of involvement in the scheme.
This case serves as a reminder of the need for robust cybersecurity measures and vigilance when dealing with digital assets. If you are looking to boost your online safety when handling cryptocurrencies, consider investing in secure hardware wallets like the Ledger Nano X, a highly trusted wallet for safeguarding your digital funds.
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