The Philippines Department of Justice has taken action, charging two Coins.ph ex-workers for stealing 12.2 million XRP worth about $6.2 million.
Two Russian ex-workers of Coins.ph, a centralized crypto exchange, have stolen a massive sum from the company. Collaboratively, the men hacked into the company’s system to steal 12.2 million ripple tokens (XRP) worth about PHP340 million ($6.2 million).
Philippines DOJ Charges Two Russians for Hack
The Philippines Department of Justice (DOJ) made a significant announcement last week, charging two Russians, Vladimir Evgenevich Avdeev and Sergey Yaschuck, with stealing XRP tokens from a local cryptocurrency dealer, Coins.ph. The defendants face severe charges under the Cybercrime Prevention Act of 2012, Republic Act No. 10175.
Upon noticing an unusual login into the system, Coins.ph discovered a security compromise and began investigating. After tracing the activities, the company found that only individuals who understood the network’s configuration and security measures could carry out such a hack.
The accused individuals, Avdeev and Yaschuck, previously worked under Betur Inc. as Coins.ph consultants. Using their advanced knowledge of the company, they broke through its robust security measures and processed illegal transactions, stealing up to $6.2 million.
According to the allegations, neither individual withdrew directly to their local bank accounts after stealing the coins. They tried transacting via different crypto platforms and exchanges to reduce their chances of being caught. However, that didn’t work out, as the agency caught them after a series of tracing and investigations.
Avdeev is charged with 23 cybercrime counts. His bail has been set at PHP120,000 ($2,053) per count. For the 23 counts, he must be bailed with PHP2.760 million, approximately $47,220. His partner in crime, Yaschuck, is charged with three charges with similar bail terms. He will be bailed with PHP360,000 ($6,160).
Addressing the issue, Philippines Justice Secretary Jesus Remulla said on behalf of the DOJ, “It is the Department of Justice’s mandate to ensure that the Rule of Law is upheld at all times, and this extends even in cyberspace.” Further, he assured the public of the department’s dedication to upholding justice in every section required. He also advised everyone to be alert to different schemes cybercriminals could use to scam individuals.
Recently, the rate of a few cases of cryptocurrency fraud has increased globally. A banker was caught and sentenced to 41 months in prison for cyber fraud. A standing crypto exchange in Lithuania has gone against government sanctions by processing illegal transactions for over 18 months.
