Teen Crypto Hacker Ordered to Return $5.2 Million in Bitcoin

Teenage Hacker's Sentencing

A US judge has sentenced a teenage hacker, Wagaafe Hared, from Arizona, to return nearly $5.2 million in stolen Bitcoin and a luxury sports car. Hared participated in a crypto theft ring targeting affluent tech investors in San Francisco, a hub for fintech and technology. This operation has been active since 2016, exploiting a technique called SIM swapping. This identity theft method involves persuading mobile carriers to transfer a victim’s phone number to a SIM card controlled by the hacker, allowing access to email and crypto accounts.

The Crime and Consequences

Hared's arrest occurred in 2019 when he attempted to buy a McLaren sports car using Bitcoin. He admitted guilt to multiple charges, including wire fraud, identity theft, and computer hacking. The court ordered him to relinquish the car and compensate his victims. Additionally, he could face up to 10 years in prison, emphasizing the legal consequences of cybercrime.

Rising Concerns in Crypto Theft

Hared’s case underscores a broader trend of escalating crypto-related crimes. As cryptocurrencies gain value and popularity, the risk of theft increases. Criminals have adopted various tactics, from online hacking to physical violence, to steal digital assets. A particularly alarming trend is home invasions, where criminals disguise themselves as delivery personnel or service workers to access the homes of crypto millionaires. Once inside, they use coercion to extract information necessary to access crypto accounts.

Global Impact and Law Enforcement Response

This type of crime has been reported globally, including in Canada, where the Royal Canadian Mounted Police (RCMP) has issued warnings following multiple incidents. The RCMP has made arrests in connection with these crimes, highlighting the ongoing efforts to combat digital asset theft.