20230701 - Man accused of unlawful use of computer in crypto fraud

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Interesting #financialcrime typology for training purposes around 'easy money to be had' and the corruption of a younger 'technically savvy' generation.

In this case, Adam Gray, just 20 years old has been charged with 21 counts of unlawful use of a computer and attempted theft following an alleged #cryptocurrency fraud.

Readers might recall that a few years ago Conor Freeman (21) was jailed for role in $2 million cryptocurrency theft
identified by US Homeland Security as part of online group.  Freeman, jailed in Ireland, pleaded guilty to knowingly engaging in the possession of the proceeds of crime — namely 142.75682712 Bitcoin. Today (01 July 2023) that amount of bitcoin would be worth a hefty $4.35mn.

Not often is there media about dishonestly operating a computer “with the intention of making gain for yourself or another or causing loss to another”.  There is clearly more to the facts of this story than is currently in the public domain.  Mr Freeman was also charged with three counts of dishonestly operating a computer to make a gain.
Adam Gray, just 20 years old has been charged with 21 counts of unlawful use of a computer and attempted theft following an alleged cryptocurrency fraud. It is alleged that at a place unknown within the Ireland the accused dishonestly operated a computer, or caused it to be operated “with the intention of making gain for yourself or another or causing loss to another”.

Mr. Gray is also charged with five counts of attempted theft from different people, at locations in Dublin. The attempted theft charges related to a total of €1,249 while the amount of money alleged to have gone through the account was €8,136, the court heard.
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Conor Freeman case (November 2020)

This is a very interesting case.  Freeman was jailed in November 2020. In addition to pleading guilty to knowingly engaging in the possession of the proceeds of crime — namely 142.75682712 Bitcoin, he also pleaded guilty to stealing $100,000 in cryptocurrency from Darran Marble on May 15th 2018, stealing cryptocurrencies with an approximate value of $1,921,335, from Seth Sharpiro on May 16th, 2018, and stealing cryptocurrencies with an approximate value of $167,622.22 from Micheal Templeman on May 18th, 2018.  He also entered guilty pleas to three counts of dishonestly operating a computer to make a gain on dates between May 15th and May 18th, 2018. He has no previous convictions.

•  Freeman was identified by the United States Department of Homeland Security as being the person behind certain internet handles connected to the offences.

• Freeman was part of a group of people who had met online. This group identified people on social media who they believed might have access to some amount of cryptocurrency.
• ​The group was able to gain access to the email addresses and phone numbers of these people via social media, which was information needed to commit the crimes.
• Freeman’s co-conspirators knew people who worked in telecommunications who would transfer the phone numbers of potential victims onto SIM cards purchased by the group.
• The co-conspirators would then initiate protocols that are in place in the event of people forgetting their passwords in order to gain access to the online accounts of potential victims.
• After his co-conspirators gained access to the email exchanges of these people, Freeman would go through these exchanges and identify sources of cryptocurrencies they possessed.
• The proceeds of the thefts would be split evenly between all parties who were involved. The court heard that there are five co-accused of Freeman who are before the courts in the United States.
• Freeman's lawyer said his client was “very much a loner” as a teenager who reverted to an online world. He said his client started out “hacking” other persons accounts during online games and that he did so not for monetary gain, but rather for the “thrill”.

Adam Gray links:

• https://www.independent.ie/irish-news/courts/man-accused-of-unlawful-use-of-computer-in-crypto-fraud/a235542840.html
• https://www.linkedin.com/posts/peteroakes_financialcrime-cryptocurrency-activity-7080843579216027648-qXyS

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Conor Freeman link

• https://www.irishtimes.com/news/crime-and-law/courts/circuit-court/man-jailed-for-role-in-2-million-cryptocurrency-theft-1.4411641