27-Year-Old Miami Resident Sentenced to 63 Months in Prison for Crypto Fraud Scheme
Esteban Cabrera Da Corte, a 27-year-old resident of Miami, has been handed a 63-month prison sentence Judge Katherine Polk Failla in a New York District Court for his involvement in a significant cryptocurrency fraud scheme. This comes after Da Corte pled guilty earlier this year to charges related to a plot that took place from 2020 to early 2021, which saw him using stolen personal information to illegally obtain cryptocurrency and deceive banks into reversing the transactions.
Scheme Details and Sentence
According to prosecutors, Da Corte and others involved in the scheme opened multiple accounts on a major cryptocurrency exchange using fake passports, licenses, and stolen identity information. These accounts were linked to bank accounts controlled the group and were funded through a series of cash ATM deposits.
The group used over $4 million to purchase cryptocurrency, quickly transferred the funds out of the exchange, and then reversed the transactions through fraudulent claims to banks, stating that the purchases were unauthorized. As a result, the scheme netted over $4 million in illegitimate bank transaction reversals and cost the trading platform over $3.5 million worth of cryptocurrency losses.
In addition to the 63-month prison term, Da Corte has been ordered to pay close to $3.6 million in restitution and forfeit $1.2 million earned illegally as part of the scheme. The U.S. Attorney for the Southern District of New York, Damian Williams, referred to the scheme as “a plot to steal millions of dollars purchasing cryptocurrency using false and stolen identities.”
Impact of the Scheme
The elaborate nature of the scheme, which involved the use of stolen personal information and fraudulent transactions, highlights the vulnerabilities within the cryptocurrency space. It also sheds light on the increasing prevalence of cryptocurrency-related crimes and the potential financial losses incurred both individuals and exchange platforms.
With the rapid growth and adoption of cryptocurrencies, there is a pressing need for enhanced security measures and regulatory oversight to protect individuals from falling victim to such fraudulent activities. The sentencing of Da Corte serves as a warning to others involved in similar schemes, signaling the serious consequences of engaging in cryptocurrency fraud.
I’m a cryptocurrency and blockchain technology journalist. My work has been featured in major publications such as CoinDesk, Bitcoin Magazine, and VentureBeat. I’ve been a respected voice in the cryptocurrency community and my insights into the industry have helped shape its development.
