A crypto-millionaire is a dangerous thing to be

Everyone hates banks but no one is getting their money stolen from them

Step 1) Be a crypto millionaire

Step 2) Don’t tell anyone you’re a crypto millionaire

Because if word gets out, people are going to be coming after your money. I have read about some incredible plans for blockchain technology but nothing compares to the ingenuity of crypto scams. Stealing phone numbers, elaborate phishing scams and all-types of impersonation.

And of course, there is the classic stick-up, which the WSJ describes here:

On a Saturday afternoon in November, Louis Meza made plans to meet a
friend and fellow cryptocurrency enthusiast for drinks at Ruby Tuesday
in New York City’s Times Square. “We’re going to have a great time,”
Meza said in a text. “And by the way, I’m putting you in an Uber car at
the end of the night.”

A former salesman at the food-delivery service

Grubhub
,

Meza is described by friends as gregarious and courteous-a
35-year-old poker buff with an entrepreneurial streak and an appetite
for risk. The two men had known each other for about 15 years. They met
for drinks and, around 7:40 p.m., Meza’s friend said he was heading to
the subway. Meza insisted on an Uber and ushered his friend-listed in
court documents as “the victim”-into a gray minivan waiting outside.

According to the Manhattan district attorney’s office, a
gunman hiding in the back seat of the van popped up and demanded the
victim’s wallet, keys, cellphone and a USB drive, which contained ether, a type of cryptocurrency.
The victim handed over everything but the drive, which wasn’t on his
person; the gunman pulled a hood over the victim’s head. “Where is your
24-word passphrase?” he demanded again and again.

An indictment unsealed in December accuses Meza of robbery, kidnapping
and other crimes. Meza pleaded not guilty. But according to prosecutors,
security-camera video shows Meza unlocking the victim’s apartment with
keys and emerging about a minute later with a small white box, which,
according to the victim, held his ether. The day after the theft, Meza
transferred $1.8 million in ether to an online account in his own name.
“We see the $1.8 million get deposited into that account on the morning
of November 5, and then we see it being moved all over the place,”
Assistant District Attorney James Vinocur told the judge in the case.

That’s part of a story about crypto crime that estimates about 20% of the transactions of bitcoin, Monero, Zcash, ether and litecoin have some connection to crime.

Incredibly, prosecutors aren’t confident in the case because they haven’t been able to trace the crypto.

Ultimately, the story delves into the number of people working to make crypto transactions truly anonymous.

Bitcoin is up about 1.7% today and has impressively stabilized after Wednesday’s negative reversal.