Man Sues Parents Of Teens Who Stole Nearly $1M In Bitcoin Heist

Bitcoin scams have been rampant since the market started gaining popularity. Since its over a decade-long existence, there has been an uncountable number of scams. Some of these scams have become well-known that most people do not fall for them again. But others have evolved to be harder to spot. Hiding in the shadows so the victims do not even suspect that they are the subject of an attack. This is what happened in the case of an American man, who lost 16.24552 bitcoins, almost $1 million, to teens in the U.K.

How The Loss Happened

Andrew Schober is a Colorado resident who had accumulated a reasonable number of bitcoins. An avid Redditor, Schober had followed cryptocurrencies on the site. This is where he came across a link to download a Bitcoin wallet. Schober clicked the link and download the Electrum Atom Bitcoin wallet, in what was seemingly a straightforward process.

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Unknown to him, Schober had also picked up a piece of clipboard hijacking malware from this download. This malware then went on to redirect Schober’s 16.4552 BTC to a wallet that was owned by two teenagers who lived in the U.K. At the time of the theft, the coins were worth £146,800.

Tracking Down The Bitcoin

This amount was a significant part of Schober’s wealth, making up about 95% of his entire network. As was quoted in a letter sent to the teen’s parents by Schober, this was both “financially and emotionally devastating.”

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While most people would cut their losses and consider it a lost cause, Schober didn’t give up hope. He went on to spend around three years and approximately $10,000 on experts who had helped him track down who the wallet belonged to. After a long search, Schober finally got conclusive evidence that pointed to Benedict Thomspson and Oliver Read, two teenagers, now adults, living in the U.K. at the time of the theft, as the culprits.

Too Young To Sue

The age of the perpetrators at the time of the theft made them juveniles, which meant that Schober couldn’t sue them directly for the money. So now Schober is suing the parents of the culprits for the total amount of bitcoin lost, which has risen to nearly $1 million at this point.

Bitcoin price chart from

Bitcoin price chart from

Current BTC price puts present value of the stolen funds at almost $1 million | Source: BTCUSD on

Schober had not gone directly to suing. First, he had sent a heartfelt letter to the parents of the culprits, asking them to tell their children to release the BTC that they had stolen from him. When this failed to yield any result, Schober proceeded with a lawsuit against the parents of the culprits.

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The defendants’ argument remains that the statute of limitations on the theft had elapsed. Thus making the lawsuit not viable. But none of the defendants have come out to deny that the theft had happened.

The lawsuit is currently pending. The suit lists now university students Oliver Read and Benedict Thompson, alongside their parents, as defendants in the case.

Featured image from Bitcoin Exchange Guide, chart from


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South African asset manager denies stealing billions from users, claims $5M was lost in hack

Raees Cajee, the co-founder of South African crypto investment platform AfriCrypt, has denied claims that he and his brother ran off with billions in investor funds, asserting the platform lost $5 million in a hack.

Last week, Cointelegraph reported that AfriCrypt — an asset manager purporting to offer daily returns of up to 10% that launched in 2019 — had been accused of disappearing with 69,000 BTC of investor funds in a mysterious exploit.

While AfriCrypt had notified users of the hack on April 13, suspicions were immediately raised as the message urged investors to avoid taking legal action as it would slow down the recovery of the funds. Shortly thereafter, the brothers reportedly halted AfriCrypt’s operations and went missing.

Speaking with The Wall Street Journal on June 28, Raees sought to counter the accusations laid against AfriCrypt and its co-founders, asserting the pair went into hiding after receiving death threats from some “very, very dangerous people.”

Raees also rejected claims that $3.6 billion in funds is missing, asserting the firm only managed $200 million during its peak in April, and that only $5 million in investor funds are unaccounted for after the hack.

“At the height of the market, we were managing just over $200 million.”

Hanekom Attorneys, the law firm representing AfriCrypt’s customers, alleges the brothers transferred $3.6 worth of BTC from AfriCrypt’s accounts and client wallets, before moving the funds through “various dark web tumblers and mixers” to prevent the funds from being traced further.

If the allegations against AfriCrypt are true, the incident would surpass the losses from South African-based Ponzi-scheme Mirror Trading International, which pulled in 23,000 BTC from unsuspecting investors in the country’s largest confirmed crypto fraud to date. At today’s prices, the stolen BTC would fetch $800 million.

Related: Minneapolis Fed President Neel Kashkari calls DOGE a Ponzi scheme

Lawyer John Oosthuizen, who is representing the Cajee brothers, told the BBC on June 26 that the pair has “categorically denied” the allegations they stole their investors’ funds.

“They maintain that it was a hack, and they were fleeced of these assets,” he added.

South Africa’s Financial Sector Conduct Authority (FSCA) released a statement regarding the case on June 24, noting the project appeared to have Ponzi-like characteristics:

“This entity was offering exceptionally high and unrealistic returns akin to those offered by unlawful investment schemes commonly known as Ponzi’s.”

However, the FSCA asserted it cannot take any action against AfriCrypt as crypto assets are currently unregulated in South Africa.

According to WSJ, a separate group of investors is seeking AfriCrypt’s liquidation. The brothers plan to surface for a July 19 court hearing regarding their claims.