US seizes assets of Dark Web Bitcoin fraudster Scott Reed
A US investigator is petitioning a district court to seize the assets of alleged Bitcoin fraudster Scott Reed.
Secret Service agent Jason B. Brown petitioned the US District Court for the Eastern District of Tennessee in Knoxville to seize an iPhone and other computer equipment that Reed used to earn Bitcoin on the dark web.
Reed hacked credit cards to earn Bitcoin
A former software engineer, Reed hacked credit cards to buy iTunes and Google gift cards to sell for Bitcoin on the dark web. The marketplace was notorious for selling drugs, stolen financial information and child pornography.
According to Brown, Reed converted the sales proceeds to US dollars and deposited them into two BitPay accounts with the numbers 4179470003708205 and 4179470004143808.
He could then access funds through a BitPay debit card. Reed had $13,595.48 in his BitPay accounts.
Brown has asked the court for permission to seize the funds and other electronic assets, including laptops, tablets and computer storage devices in addition to the iPhone.
Earlier searches of Reed’s residence revealed credit card replication equipment and point-of-sale software.
BitPay voluntarily froze Reed’s funds after his initial arrest. Reed died on February 8, 2023 at Fort Sanders Regional Medical Center in Knoxville.
US investigators seized $7 billion in cryptocurrency last year, including $3.6 billion from the iconic Bitfinex hack in 2016. Authorities also announced last November that $3.36 billion was seized from darknet marketplace Silk Road a year earlier .
Darknet revenue dropped 50% in 2022
Last year, London’s Metropolitan Police tracked drug-related darknet crypto transactions to help the operational side of a financial investigation.
Through forensic tools, they discovered a wallet address receiving significant funds from Spain, suggesting that this entity was importing drugs into the UK
According to the Chainalysis 2023 Crypto Crime Report, revenue from darknet and scam shops fell by nearly 50% to $1.5 billion last year.
The highest grossing marketplace Hydra Darknet earned over $500 million selling drugs and money laundering services. It was shut down by US and German authorities last year, with law enforcement seizing $25 million in Bitcoin.
Fraud shops, which sell credit cards and other personally identifiable information, saw a dramatic drop in revenue. The closure of prominent suppliers such as Bypass Shop partly triggered this decline.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
Disclaimer
In accordance with the guidelines of the Trust Project, BeInCrypto is committed to objective, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify the facts independently and consult with a professional before making any decisions based on this content.
