The US charges two Canadians in $230k Bitcoin fraud on HitBTC and Kraken exchanges

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  • Customers were duped into sending sensitive information including emails.
  • The stolen Bitcoins are estimated to be valued at $233,220.

The latest release by the US Department of Justice (DoJ) says that two Canadian nationals were indicted for A Bitcoin-related fraud. The two Karanjit Singh Khatkar, 23, and Jagroop Singh Khatkar, 24 were found to have been involved with wire fraud, money laundering and aggravated identity theft for a scheme to steal bitcoin from an Oregon resident.

The defendants, in this case, are said to have faked the Twitter accounts belonging to HitBTC customer care. Customers were duped into sending sensitive information including emails. The two then took over the customers’ accounts and “initiated transfers of 23.2 bitcoins from the victim’s HitBTC account to Karanjit Khatkar’s Kraken account.” Moreover, “Karanjit Khatkar, in turn, transferred approximately 11.6 in stolen bitcoins to Jagroop Khatkar’s Kraken account.”

The stolen Bitcoins are estimated to be valued at $233,220 using the current exchange rate. Karanjit Khatkar is already behind bars and the hearing for the case has been set for October 8. However, Jagroop Singh Khatkar is yet to be arrested but said to be currently in Canada.

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