{"id":139201,"date":"2020-07-13T22:16:11","date_gmt":"2020-07-13T21:16:11","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=139201"},"modified":"2020-07-13T22:16:11","modified_gmt":"2020-07-13T21:16:11","slug":"rolls-royce-gucci-flaunting-scammers-caught-after-fbi-analyzes-bitcoin-trail","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/rolls-royce-gucci-flaunting-scammers-caught-after-fbi-analyzes-bitcoin-trail\/","title":{"rendered":"Rolls-Royce, Gucci-flaunting scammers caught after FBI analyzes Bitcoin trail"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Two Nigerian scammers were held last week after hatching an elaborate fraud to steal \u201c$435 million around the world\u201d using illicit emails, luxury brand showoffs, and Bitcoin.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Identified as Ramon \u201cHushpuppi\u201d Abbas and Olalekan \u201cWoodberry\u201d Ponle, the duo showed off a lavish lifestyle complete with luxury cars, expensive watches, private jets, and gold watches on their Instagram.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The music stopped last week after the FBI extradited the two from Dubai on several criminal charges. Meanwhile, new documents show they used crypto-exchange <a href=\"https:\/\/cryptoslate.com\/companies\/gemini\/\">Gemini<\/a> to purchase millions in Bitcoin, before using peer-to-peer services like <a href=\"https:\/\/cryptoslate.com\/companies\/localbitcoins\/\">LocalBitcoins<\/a> to encash those funds.<\/span><\/p>\n<figure id=\"attachment_139207\" aria-describedby=\"caption-attachment-139207\" style=\"width: 1157px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-139207\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/extravagance.png\" alt=\"\" width=\"1157\" height=\"655\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/extravagance.png 1157w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/extravagance-300x170.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/extravagance-1024x580.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/extravagance-768x435.png 768w\" sizes=\"(max-width: 1157px) 100vw, 1157px\" \/><figcaption id=\"caption-attachment-139207\" class=\"wp-caption-text\">A lifestyle of extravagance and Instagram promoting. Bitcoin laundering allowed the scammers to settle in Dubai, but the law eventually caught on. (<em>Source<\/em>: <a href=\"https:\/\/www.instagram.com\/p\/BzX3U-WAbEF\/\">Instagram<\/a>)<\/figcaption><\/figure>\n<h2>Gemini used to purchase millions in BTC<\/h2>\n<p><span style=\"font-weight: 400;\">An <a href=\"https:\/\/www.justice.gov\/usao-ndil\/press-release\/file\/1292061\/download\">SEC filing<\/a> obtained by CryptoSlate shows the scammers made fraudulent bank accounts for two unnamed companies in Chicago. They then targeted employees to sent funds to those accounts, converting them to Bitcoin via Gemini soon after.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Blockchain analysis conducted by independent firms showed Ponle swindled \u201cat least 1,495 Bitcoins\u201d valued at $7 million approx.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The scammers used Bank of America, Wells Fargo, and other banks to transfer their funds. While they made efforts to cover their bank traces using an alias and other tricks; they didn\u2019t seem to cover their Bitcoin footprint \u2014 which ultimately led to them getting caught.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Filings show Gemini was the scammers\u2019 most-used exchange. One occasion shows they converted $2 million in BTC in February 2019:<\/span><\/p>\n<figure id=\"attachment_139204\" aria-describedby=\"caption-attachment-139204\" style=\"width: 773px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-139204\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/gemini-bitcoin.png\" alt=\"\" width=\"773\" height=\"767\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/gemini-bitcoin.png 773w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/gemini-bitcoin-300x298.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/gemini-bitcoin-150x150.png 150w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/gemini-bitcoin-768x762.png 768w\" sizes=\"(max-width: 773px) 100vw, 773px\" \/><figcaption id=\"caption-attachment-139204\" class=\"wp-caption-text\">SEC filing shows scammers used Gemini to buy millions in Bitcoin.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">The transactions amou<\/span><span style=\"font-weight: 400;\">nted to 601 BTC. Bitcoin traded at around $3,500-$4,000 in that period last year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Eventually, an undercover FBI agent posed as an OTC dealer. The scammers\u2019 bit the bait and were later arrested.<\/span><\/p>\n<h2>Football stars and tracing Bitcoin<\/h2>\n<p><span style=\"font-weight: 400;\">Abbas and Ponle used Paxful and LocalBitcoins to encash the illicit-gains, the SEC report stated.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">B<\/span><span style=\"font-weight: 400;\">oth outlets have, in the past, been criticized for their poor KYC procedures and user accountability.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, the two are claiming no wrongdoing, CNN <a href=\"https:\/\/edition.cnn.com\/2020\/07\/12\/us\/ray-hushpuppi-alleged-money-laundering-trnd\/index.html\">reported<\/a> Monday. Their lawyers say Abbas and Ponle are legitimate businessmen running real estate advisory services and work as Instagram \u201cinfluencers.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When CryptoSlate looked at Abbas\u2019 Instagram, he seemed to have contacts in interesting quarters. There\u2019s a picture with English and Chelsea football star Tammy Abraham, and other U-21 players. At press time, no reports or comments from Chelsea regarding their relationship exists.<\/span><\/p>\n<figure id=\"attachment_139208\" aria-describedby=\"caption-attachment-139208\" style=\"width: 1163px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-139208\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/bitcoin.png\" alt=\"\" width=\"1163\" height=\"664\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/bitcoin.png 1163w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/bitcoin-300x171.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/bitcoin-1024x585.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/bitcoin-768x438.png 768w\" sizes=\"(max-width: 1163px) 100vw, 1163px\" \/><figcaption id=\"caption-attachment-139208\" class=\"wp-caption-text\">Tracing Bitcoin transactions helped authorities bust the scam the Nigerian duo ran across the world. (<em>Source<\/em>: Instagram)<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Amusingly, it was Bitcoin\u2019s blockchain instead of bank-provided information that helped the FBI trace the scammers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For decentralization purists, this means a breach of one\u2019s financial identity and a case for the pseudonymity of Bitcoin.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But for legal enforcers, it signals Bitcoin (and other cryptocurrencies) can be part of a well-functioning financial system where professional analytics firms trace any fraudulent transactions when requested.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Only time will tell how the crypto-ecosystem will turn out; an independently-run system or coming full-circle with regulators and strict KYC in place.<\/span><\/p>\n<p>Just last week, a similar scam was busted in China after regulators traced Ethereum transactions to the perpetuators. As CryptoSlate <a href=\"https:\/\/cryptoslate.com\/china-15-million-ethereum-scam-ends-in-ferrari-showdown\/\">reported<\/a>, the scammers swindled ETH to fund a lifestyle featuring lavish villas and Ferraris.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Two Nigerian scammers were held last week after hatching an elaborate fraud to steal \u201c$435 million around the world\u201d using illicit emails, luxury brand showoffs, and Bitcoin. Identified as Ramon \u201cHushpuppi\u201d Abbas and Olalekan \u201cWoodberry\u201d Ponle, the duo showed off a lavish lifestyle complete with luxury cars, expensive watches, private jets, and gold watches on [&hellip;]<\/p>\n","protected":false},"author":65,"featured_media":139249,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,9836],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rolls-Royce, Gucci-flaunting scammers caught after FBI analyzes Bitcoin trail<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/rolls-royce-gucci-flaunting-scammers-caught-after-fbi-analyzes-bitcoin-trail\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rolls-Royce, Gucci-flaunting scammers caught after FBI analyzes Bitcoin trail\" \/>\n<meta property=\"og:description\" content=\"Two Nigerian scammers were held last week after hatching an elaborate fraud to steal \u201c$435 million around the world\u201d using illicit emails, luxury brand showoffs, and Bitcoin. Identified as Ramon \u201cHushpuppi\u201d Abbas and Olalekan \u201cWoodberry\u201d Ponle, the duo showed off a lavish lifestyle complete with luxury cars, expensive watches, private jets, and gold watches on [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/rolls-royce-gucci-flaunting-scammers-caught-after-fbi-analyzes-bitcoin-trail\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-13T21:16:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/rolls-royce.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Shaurya Malwa\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shaurya Malwa\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/rolls-royce-gucci-flaunting-scammers-caught-after-fbi-analyzes-bitcoin-trail\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/rolls-royce-gucci-flaunting-scammers-caught-after-fbi-analyzes-bitcoin-trail\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/shaurya-malwa\/#person\",\"name\":\"Shaurya Malwa\",\"url\":\"https:\/\/cryptoslate.com\/author\/shaurya-malwa\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/shaurya-malwa\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/shaurya-malwa\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/07\/author-shaurya-malwa.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/07\/author-shaurya-malwa.jpg\",\"caption\":\"Shaurya Malwa\"},\"jobTitle\":\"Analyst\",\"description\":\"Post-mining his first bitcoin in 2012, there was no looking back for Shaurya Malwa. 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