Police in Scottsdale, Arizona, have arrested a man accused of posing as an Uber driver to steal over $300,000 in cryptocurrency from unsuspecting passengers.
Nuruhussein Hussein, 40, was apprehended on December 11 and charged with theft, fraud, and money laundering. The investigation, led by the Scottsdale Police Department and the U.S. Secret Service, has shed light on an elaborate scheme targeting crypto investors.
How did the $300K Theft Happen?
Hussein reportedly operated by pretending to be a legitimate Uber driver, calling out the names of passengers waiting for rides. Once the victims entered his car, he allegedly employed one of two strategies to gain access to their phones.
In one case, Hussein claimed his phone was broken and asked to borrow the passenger’s device. In another instance, he offered to troubleshoot the Uber app after the passenger raised concerns about their driver’s arrival status.
Using this pretext, Hussein allegedly accessed the passengers’ Coinbase accounts, transferring cryptocurrency either through a phone-to-phone transaction or by transferring funds to cold storage wallets.
Court documents reveal that Hussein managed to steal a combined total of $223,000 from two victims using these methods.
Threats and Coercion
Prosecutors allege that Hussein made verbal threats to at least one victim when they grew suspicious and asked for their phone back. According to court documents, he warned the victim to “chill or something bad would happen,” leading the victim to believe he was armed, although no weapon was visible at the time.
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Due to the serious nature of the alleged crimes and the perceived threats, prosecutors pushed for a $200,000 cash-only bond. Hussein is currently being held in Maricopa County Jail and is scheduled to appear in court again on December 18.
A Growing Concern of Crypto Thefts
This case highlights a troubling trend of offline cryptocurrency thefts, which often rely on physical interactions and psychological manipulation. According to GitHub data, there a minimum of 19 recorded incidents of such crypto-related thefts worldwide in 2024, which is up from 17 in the last year.
These crimes are particularly concerning because they combine traditional theft techniques with the complexities of digital currency fraud.
The FBI’s recent Cryptocurrency Fraud Report also underscores the scale of the problem, noting that over 16,000 fraud complaints were filed by individuals aged 60 and older. Arrests for cryptocurrency-related scams, however, remain relatively rare, making cases like Hussein’s stand out.
Broader Implications
The arrest also comes amidst increasing scrutiny of cryptocurrency crimes, with law enforcement agencies ramping up efforts to combat fraud. Last December, four individuals were charged in a separate “pig butchering” scheme, which scammed victims out of more than $80 million.
The ongoing investigation into Hussein’s activities raises questions about whether other victims may come forward. With cryptocurrency adoption on the rise, this case serves as a stark reminder of the risks associated with managing digital assets and the importance of safeguarding personal devices and account information.
As authorities continue to probe the case, the spotlight remains on the need for stricter security measures to protect cryptocurrency users and traders from falling victim to such schemes.
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