Two Israeli Brothers Arrested for Phishing Fraud, Bitfinex Hack
27 Jun 2019
The Israeli Police cyber unit arrested two brothers, Eli and
Assaf Gigi, for allegedly perpetrating a multi-year phishing scheme and
participating in a 2016 hack of Bitfinex. Israeli news outlet Ynet reports
the two allegedly stole over $100 million in cryptocurrency.
The infamous Bitfinex theft of 119,756 BTC shocked the
crypto market with the largest loss of bitcoins by an exchange since the Mt.
Gox breach in early 2014.
Earlier this month, some of the stolen bitcoin were
recorded moving from wallets connected with the hack, after three
years of lying dormant.
Israeli crime news portal Posta reported that
several several cyber units across the globe are cooperating in an effort to
retrieve the missing funds. The majority of compromised accounts were from
users in the U.S. and E.U. In February, Bitfinex announced that some of the
stolen bitcoin – 27.66270285 – were returned after being retrieved by the U.S.
The Gigi brothers Eli, 31, and Assaf, 21, also allegedly
constructed a phishing scheme that involved luring investors from crypto
trading forums, such as Telegram or Reddit, onto websites that mimicked
prominent crypto exchanges. They would collect the traders’ login and wallet
information and use it to transfer the funds stored on legitimate exchanges to
their own accounts.