A young Canadian, originally from Hamilton, Ontario, was arrested and is now serving one year in prison in the U.S. The case began with a CAD 48 million SIM swap theft and continued with fraudulent activities while awaiting trial. The investigation demonstrates the scope of digital crime and its impact on individuals, social platforms, and authorities, as well as how technological crimes can escalate quickly and generate significant losses.
Case Timeline and Methods Used
Initial Theft in 2020
The first attack occurred in 2020, when the accused was 17 years old. Through a SIM swap procedure, he gained control of a victim’s phone number and accessed their cryptocurrency wallets. From a single victim, he stole CAD 48 million, a major theft that shocked the crypto sector and highlighted the vulnerability of SMS-based authentication.
Frauds During Pre-Trial Release and Evidence Linking
While awaiting trial, he continued with fraudulent activities. He was responsible for a campaign that took over accounts on X (formerly Twitter), affecting around 200 people and generating nearly USD 1 million in additional scams.
Authorities linked the purchase of the rare PlayStation username, “God,” to stolen Bitcoin, a key point that helped connect the transactions to the suspect. His case demonstrates how digital traces can serve as critical evidence and strengthen investigations into transnational crimes. Now, as an adult, he is serving one year in prison in the U.S.
Implications and Risks for the Ecosystem
The case highlights critical security and governance issues, such as:
-
Weakness of SMS-based authentication, demonstrated by the SIM swap.
-
Use of social accounts for fraud and the difficulty of containing damage when the perpetrator operates from another jurisdiction.
-
Effectiveness of bail in digital crimes, especially when the damage crosses borders.
For products, compliance teams, and crypto investors, the case has practical implications:
-
Strengthening authentication: prefer alternatives to SMS authentication and improve security protocols.
-
Reputational and operational risk for platforms: the need for stronger access controls and detection, as well as early warning systems against coordinated attacks.
-
Cross-border cooperation: the prosecution in the U.S. of a Canadian citizen underscores the importance of agreements and coordination between prosecutors and law enforcement for globally-reaching cases.
-
On-chain evidence and proof: linking user purchases with stolen assets illustrates how digital traces support investigations, even when crimes span multiple jurisdictions.
The case keeps the focus on identity controls, custody, and international cooperation in crypto crimes, while also emphasizing the need for stronger security practices, raising awareness of digital risks, and promoting a culture of prevention against technological fraud.
