Oklahoma police have arrested two men who stole millions of dollars from a California-based cryptocurrency organization, local media detailed.
Joseph Harris, 21, and Fletcher Robert Childers, 23, of Missouri, were arrested on doubt of a burglary, a first-degree felony, and identity theft, a Class C crime. Whenever charged for both, the pair could get up to 35 years of jail time, as indicated by Oklahoma state laws.
Court documents recorded by Crowd Machine, a San Jose-based decentralized IT organization, named Childers and Harris for their alleged association in a $14 million burglary. The report blamed the pair for swapping the victim’s mobile sim card with a fake to steal his identity and phone number. That allowed Childers and Harris to trade off a cryptocurrency wallet registered with the stolen sim and lift $14 million worth of CMCT tokens.
An investigator with the Santa Clara County District Attorney’s Office and individuals from the local Oklahoma police worked with the state’s Regional Enforcement Allied Computer Team (REACT) in tracing the phone used in the hack. It was later followed to a hotel, where the subsequent arrests were made.
Crowd Machine had recently finished up a pre-ICO round of CMCT tokens. So far, the organization has released 500 million token units to the market and was holding 1.5 billion ICO tokens for reserve. After the hack, the accused moved 1 billion CMCT to digital currency trades, some outside the United States. Crowd Machine connected with its locale with a demand to not deal with people related to the compromised wallet address. Accordingly, numerous trades stopped exchanging of CMCT tokens.
Craig Sproule, the CEO and co-founder of Crowd Machine wrote, “It is very highly recommended that nobody buy CMCTs until the point when the criminal investigations have stopped, at which time, we anticipate that shut trades will re-open. Purchases of stolen tokens by those not included with the burglary will be respected,”
Harris is presently held under authority at an Oklahoma imprison without bond.