QUEENS, NY – Queens District Attorney Melinda Katz has announced the indictment of seven individuals involved in a sophisticated cryptocurrency theft and laundering scheme.
The grand jury charged the defendants with grand larceny, money laundering, identity theft, and additional crimes following an extensive investigation into a hack that occurred in November 2022.
During the incident, 5.75 bitcoins, then worth about $92,000, were stolen through two unauthorized transactions from a private wallet on Blockchain.com owned by a Queens resident.
The current value of the stolen bitcoins exceeds $300,000. Authorities detailed how the stolen funds were moved using a “peel chain” method, which involved dispersing the bitcoin through over 250 small transactions primarily via the Cash App.
The Cyber Crimes Unit of the District Attorney’s office traced these transactions back to accounts linked to the defendants, unraveling a complex network designed to obscure the origins of the stolen funds. “This case required meticulous investigation to expose the layers of this crime,” stated DA Katz. She praised the efforts of her team and acknowledged Assembly Member Clyde Vanel for bringing attention to the case.
The alleged leaders of this criminal network, Aaron Peterson Jr., 20, his father Aaron Peterson, 39, and mother Autumn Clark, 37, all from Sacramento County, CA, have been extradited to Queens and arraigned on multiple charges, including grand larceny and money laundering.
Assembly Member Vanel commented on the successful operation, underscoring the commitment to safeguarding residents from technological frauds and ensuring the security of their investments and transactions. He expressed his satisfaction with the proactive efforts to hold those accountable who seek to defraud Queens residents.
