- A British hacker faces a jail term for a phishing scam targeting over 500 Coinbase accounts, highlighting the legal system’s stance against cryptocurrency-related crimes.
- Elliot Gunton has been sentenced to three and a half years for a phishing scam that stole over $900,000 from Coinbase users.
- The scam involved a fake Coinbase login page, allowing Gunton and his accomplices to harvest account credentials from more than 500 accounts.
A British hacker has been sentenced to over three years in prison for a complex phishing scam, emphasizing heightened vigilance in tackling crypto crimes.
British Hacker Sentenced for Phishing Scam
The legal system has shown no leniency towards Elliot Gunton, a young British hacker who orchestrated a sophisticated phishing scam targeting Coinbase account holders. Gunton, who was only 17 and 18 at the time of his crimes, has been given a three and a half-year prison sentence after he pled guilty to charges of conspiracy to commit fraud outside the UK and money laundering.
Details of the Phishing Scam
The Norwich Crown Court proceedings revealed that Gunton, alongside his accomplices, managed to steal upwards of $900,000 from more than 500 Coinbase accounts between 2018 and 2019. The scheme involved creating a counterfeit website that mimicked Coinbase’s login page, enabling the hackers to collect and misuse user account credentials. These actions were meticulously planned and executed, showcasing a significant level of technical sophistication.
Judge’s Commentary and Criminal Background
Judge Alice Robinson, who presided over the case, labeled the operation as highly organized and technologically advanced. Gunton’s criminal activities are not a new development; he previously faced legal consequences in 2019 for stealing personal data from TalkTalk customers which he sold in exchange for cryptocurrency. He was earlier imposed with a 20-month sentence and was required to complete a 12-month rehabilitation order. Additionally, he had been commanded to pay back £407,359 ($524,700) for hacking Instagram accounts of high-profile individuals.
Regulatory Actions Against Coinbase UK
In a concurrent scenario, the UK’s Financial Conduct Authority (FCA) has fined Coinbase’s UK division, CB Payments Limited (CBPL), a substantial £3.5 million ($4.5 million) for compliance failures. This fine results from CBPL’s breach of an earlier voluntary agreement aimed at curbing the onboarding of high-risk customers.
Compliance Failures and Penalties
In October 2020, CBPL had agreed to curb new sign-ups from customers identified as high-risk by the FCA and not to offer services to these groups to mitigate money laundering risks and uphold market integrity. Despite these restrictions, FCA discovered that CBPL onboarded and provided services to 13,416 high-risk customers. The FCA regards this oversight as a significant threat to financial market stability and has levied the hefty fine to serve as a stern reminder about the importance of adherence to regulatory frameworks by cryptocurrency exchanges.
Conclusion
This legal action against both Elliot Gunton and Coinbase UK underscores the heightened vigilance and stringent measures being adopted against cryptocurrency-related crimes and regulatory breaches. As the digital finance landscape evolves, it is evident that regulatory bodies are becoming increasingly assertive in ensuring compliance and protecting market integrity. This situation serves as a cautionary tale for individuals and institutions within the crypto ecosystem to prioritize robust security measures and regulatory adherence.
