Colorado Woman Sues 20 Anonymous Individuals for $40K Cryptocurrency Theft

On Friday, April 26, 2024, Kim Velasquez, a resident of Colorado, filed a lawsuit against 20 unknown individuals referred to as John Does 1 through 20 in the U.S. District Court for the Southern District of Texas, Houston Division.

According to the complaint, in August 2023 Velasquez held digital currencies worth approximately $40,000 on two Ledger hardware wallets. Over the span of three days, almost all of these assets vanished in a series of unauthorized transfers without her consent. Blockchain records showed the funds were moved to accounts on several cryptocurrency exchanges where Velasquez did not have profiles, including Binance, KuCoin, and MEXC.

The lawsuit alleges the defendants formed an “enterprise” and engaged in wire fraud, interstate transport of stolen goods, and theft to unlawfully obtain Velasquez’s cryptocurrency holdings. As the digital coins could be tracked on the blockchain, it is clear the individuals intentionally moved the funds from her wallets to their own exchange accounts without approval. None of the assets have been returned to Velasquez, who is represented by Houston attorney Marshal Hoda.

Velasquez is suing under the Racketeer Influenced and Corrupt Organizations Act and also bringing state law claims of conversion and seeking constructive trust. She is requesting monetary damages including trebled damages available under RICO, punitive damages, legal costs and attorney’s fees, interest, and injunctive relief. Per the complaint, the defendants appear to be professional cybercriminals who have victimized numerous individuals.

As cryptocurrency gains more popularity, cases of digital currency theft have grown substantially. According to the complaint, the United States is currently amidst a crypto fraud crisis, with billions being stolen each year through hacks and scams. Through this lawsuit, Velasquez aims to hold the perpetrators accountable and recover her stolen assets, which remain under the defendants’ control.

Please contact BlockTribune for access to a copy of this filing.