Earlier in the week, for allegedly having a hand in hacking and stealing huge amounts of digital currency from a California-based crypto firm, two Missouri residents Fletcher Robert Childers, 23 and Joseph Harris, 21, have been arrested.
Earlier on Monday, authorities arrested both Childers and Harris as the pair has been alleged for stealing $14 million in cryptocurrency from San Jose, California-based start-up, Crowd Machine.
According to search warrants and Court documents filed in Oklahoma City on September 24, it showed that a California-based cybercrime task force had been informed by Crowd Machine on September 22nd, about the security breach and theft of millions of dollars in cryptocurrency from their platform’s wallets.
To steal people’s cell phone numbers and their identities, the pair allegedly made use of a SIM swapping technique.
Following the hack, Crowd Machine confirmed that its cryptocurrency wallets have been compromised by publishing a blog post on its official website.
In its blog post, Crowd Machine’s has requested all investors to remain calm until the ongoing police investigation gets completed and not buy the company’s tokens in the meantime.
The Blockchain start-up has issued roughly 500 million CMCTs along with an additional 1.5 billion tokens which were being held in its reserves.
Unfortunately, the plan back-fired as in a large-scale security breach reportedly almost 1 billion of its native tokens have been stolen and moved to different0 exchanges.
Giving his view on the hack, Crowd Machine founder and CEO, Craig Sproule said:
“The criminal investigation is ongoing so we’re not in a position to comment other than to confirm that two arrests have been made. We’ve been working closely with law enforcement agencies to help with the ongoing investigation.”
Victims have filed complaints of receiving threatening emails by the suspects, who were arrested at a hotel room in Oklahoma City, who allegedly have “actively laundered” the stolen digital currency by making use of several different crypto exchanges, “some of which are not based out of the United States.”