The National Court has approved the extradition of a Belgian citizen who allegedly defrauded an American via Reddit, the world’s largest online forum, and stole nearly half a million euros in cryptocurrency. The man, detained in Alicante in late 2021, is expected to face trial in the United States on charges including fraud, unauthorized access to computer systems, and money laundering.
According to the court order examined by El Periódico de España, the same editorial group, the alleged fraudster took advantage of a Michigan resident who was struggling to exchange Theta tokens for cash in early April, just before his arrest. At that time, the court notes, the 37,609 Theta tokens were valued at about $410,529.
No funds could be cashed out because Theta could not locate the victim’s digital wallet, and, fearing he might lose all his money, the man turned to Reddit. There he connected with the Belgian based in Alicante who presented himself as offering technical help.
Malicious software used to steal data
Under promises of a program that would restore access to the victim’s wallet, the alleged fraudster offered “technical assistance” through a fake website hosting his malware, the court found.
Through the fraudulent software, the Belgian allegedly obtained the keys linked to the victim’s Theta wallet and transferred more than 37,000 tokens to two of the suspect’s accounts. From there, authorities say the money was moved, first converted into another cryptocurrency such as Bitcoin and later dispersed across Spain and two tax havens, including the Seychelles and the Cayman Islands.
Two years after his arrest, Spain informed Belgium of the ongoing proceedings against one of its citizens in a move related to possible actions by Belgium, but the Belgian authorities never replied. The court notes a lack of interest on their part.
Following the National Court’s ruling, the government must approve the extradition decision, though this is generally a routine step. In the United States, the Belgian faces counts including electronic fraud, unauthorized computer access for fraud purposes, and money laundering under American law.
Since detention, the suspect has spent only a short period in provisional prison and has had to appear in court every other day. He has been prohibited from leaving Spain, had his passport withdrawn, and must remain reachable at his home and by phone at all times.