Key Takeaways
- Oulahyane faces multiple counts of wire fraud, the use of an unauthorized access device, and aggravated identity theft.
- The scammer created a fraudulent OpenSea website to deceive an NFT owner in Manhattan.
In a statement released on Monday, the U.S. Attorney’s Office announced that a man had been indicted for allegedly stealing $450,000 worth of cryptocurrencies and non-fungible tokens (NFTs).
The indictment, issued by the United States Attorney for the Southern District of New York, accuses Soufiane Oulahyane, a Moroccan national, of operating a look-alike website of the popular NFT marketplace OpenSea to gain unauthorized access to digital assets and NFTs using a cybercrime technique known as “spoofing.”
Spoofing in the crypto space refers to a manipulative practice where traders or market participants intentionally create false or deceptive orders to give a false impression of supply and demand. It involves placing large buy or sell orders with the intention of canceling them before they are executed. It typically involves placing a large order on one side of the order book to create the appearance of market interest.
According to the charges, Oulahyane faces multiple counts of wire fraud, the use of an unauthorized access device, and aggravated identity theft. The alleged crimes took place in September 2021.
U.S. Attorney Damian Williams highlighted the case, and stated that the charges unsealed today should serve as a reminder that digital assets, such as cryptocurrency and NFTs, are not immune from cyber fraudsters, adding that his office is committed to prosecuting these fraudsters both here and abroad.”
The indictment outlines how the alleged scammer created a fraudulent OpenSea website to deceive an NFT owner in Manhattan. Through the fake site, Oulahyane lured the victim into registering and providing the seed phrase to their digital wallet. With access to the victim’s wallet, Oulahyane proceeded to transfer cryptocurrency and a number of NFTs to his control, subsequently selling them for his own gain.
