A 24-year-old man has been arrested in Paris for his involvement in a 2018 cyber heist that stole approximately 210 million euros from the South Korean cryptocurrency platform Coinrail. Investigators linked him to the crime through previous hacking cases. Despite ongoing investigations and interrogations of other suspects, the stolen funds remain unrecovered. Authorities are increasingly concerned about cryptocurrency’s role in laundering illicit gains as related crimes continue to rise.
Internet Theft from 2018 Finally Unraveled
A significant online heist that occurred seven years ago has taken a turn with the arrest of a 24-year-old man linked to the hacking of the South Korean cryptocurrency platform Coinrail. This individual has been charged and is currently in custody in Paris, following the theft of approximately 210 million euros in 2018. Authorities confirmed his arrest on January 28, leading to his provisional detention on Tuesday as part of an ongoing judicial investigation into organized theft, money laundering, and cyber-attacks, according to the Paris prosecutor’s office, as reported by France Inter.
Tracing the Digital Footprints
The prosecutor’s office revealed that prior investigations into another hacking incident involving ‘Gatehub,’ a cryptocurrency platform breached in 2019, provided critical leads. By analyzing the confiscated digital devices, investigators uncovered connections to the Coinrail breach. “On the day of the theft, 26 million euros were taken, but due to the rising cryptocurrency market, the losses have ballooned to 210 million euros,” explained Johanna Brousse, the deputy prosecutor overseeing the cybercrime division.
Despite the ongoing investigation, the stolen funds have yet to be recovered. The Anti-Cybercrime Office (Ofac) has been tasked with the preliminary investigation. Reports indicate that three suspects have been interrogated, one of whom was located in Morocco, as they attempted to deflect blame onto others.
Investigators noted a sudden change in lifestyle among the suspects, particularly one who exhibited extravagant spending habits. “We quickly identified the potential perpetrators but struggled to trace the stolen funds. Surveillance revealed that one individual had started living lavishly,” Ms. Brousse elaborated. Cooperation between judicial authorities across South Korea, Morocco, Monaco, and the UAE has been instrumental in gathering evidence.
According to public radio sources, the main suspect, who was included in the wanted persons list, raised suspicions at the Swiss border just before his arrest. He was found in a luxury vehicle valued at 700,000 euros and was in possession of an expensive watch purchased with cryptocurrency, all while planning a getaway to Saint-Barthélemy.
Authorities have already seized luxury items and funds from bank accounts linked to the accused. Furthermore, the partner of the primary suspect, believed to have aided in the money laundering efforts, was also charged and placed under judicial control.
As the frequency of cryptocurrency-related crimes escalates, law enforcement remains vigilant. In late January, multiple individuals were charged concerning the kidnapping and mutilation of David Balland, a co-founder of Ledger, a prominent company specializing in physical cryptocurrency wallets. Additionally, four men faced charges in Aube for the attempted extortion of a cryptocurrency entrepreneur.
Law enforcement officials express growing concerns over the use of cryptocurrencies for laundering illicit proceeds, particularly those associated with drug trafficking. However, experts like Magali Caillat, deputy director in charge of combating financial crime at the judicial police, emphasize that the system has inherent vulnerabilities: “Cryptocurrency transactions leave traces, even after they have changed hands,” she stated recently to AFP.