Man Stole Hundreds of Thousands in Bitcoin

Crime, News | June 28, 2017 By:

A Connecticut man has pleaded guilty to charges he stole hundreds of thousands of dollars in bitcoin.

Michael Richo of West Haven, CT. waived his rights to an indictment and pled guilty Tuesday to federal charges that he phished account information from unwary bitcoin holders. Authorities raided his home in 2014 and seized his computers and hard drives.

Richo told agents that he took usernames and passwords from dark web accounts, according to the complaint.  Once he had access, he would then use a program to see if they deposited bitcoin. He would take the bitcoin before the users could get to it, then mask his trail. He then converted the bitcoin to money transfers, pre-paid debit cards and cash.

Federal authorities said he stole $365,000 worth of bitcoin. His formal arrest happened in October, 2016, when he was charged with access device fraud and money laundering.