Police officers in Britain focusing on cross-border crimes say they have teamed up with US-based digital asset exchange Kraken to return the stolen assets of crypto theft victims.
According to the South East Regional Organized Crime Unit (SEROCU), Wybo Wiersma from the Netherlands created the fraudulent website iotaseed.io to, according to his victims, generate random seeds to control their IOTA cryptocurrency.
However, the starting phrases were predetermined, allowing Wiersma to transfer the tokens to a number of crypto trading accounts without the owners’ consent.
Wiersma was eventually found guilty of theft. He was ordered to pay £2.1 million, part of which was deducted from the £2.37 million crypto seized by authorities.
Around £1.9 million worth of stolen assets must be returned to victims, but the tokens had to be converted into British Pounds (GBP) before they could be recovered by their owners. SEROCU says Kraken ensured the process was conducted legally.
“Kraken provided significant expertise and support that enabled SEROCU to convert the stolen crypto assets into GBP so they could be returned to victims. Kraken has also been in contact with the FCA to ensure that the handling of stolen assets was lawful, in accordance with Kraken’s FCA registration.”
In January, Wiersma was sentenced to four and a half years behind bars. So far, between 50 and 60 victims have been identified worldwide.
Says Detective Rob Bryant of SEROCU’s Cyber Crime and Cryptocurrency Unit:
“The victims, many of whom are around the world, have waited patiently for five years for this to happen and it is down to the innovation and collaboration of my team, especially with Kraken, without whom this may not have been possible.
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