The Federal Bureau of Investigation (FBI), is believed to have taken 86.5 Ethereum (ETH) and two nonfungible coins (NFTs), which had a total value of over $100,000, from a phishing fraudster.
Chase Senecal (also known as Horror) online), is a suspected con artist. He was first discovered by a thorough investigation that was done by ZachXBT, an independent blockchain investigator. Publicized in September 2022.
On February 3, the FBI sent out a formal statement stating that Seneca’s property which included a watch valued at $41,000 by Audemars Piguet and called a “royal oak watch” was “seized for federal forfeiture under federal law.”
Other than mentioning that all property was taken into possession on October 24, 2022 by the FBI, the FBI letter didn’t provide much more detail. Bored Ape Yacht Club#9658, and Doodle #31114 were among the non-fungible tokens (NFTs), which had respective values at the time they were taken into custody of $95,495, and $9,361.
The 86.5 ETH’s value was $116,433 at the time of seizure. However, it is now estimated that it is $144,000.
The extent of legal proceedings against Senecal can’t be determined at this time due to lack of clarity. According to the FBI, federal forfeiture allows the government to remove property without recompense.
The Federal Bureau of Investigation (FBI) states that this type of thing can arise in a civil proceeding, such as a suit against the item or after the conviction of an individual in a criminal trial.
ZachXBT, the on-chain detective ZachXBT, disclosed via Twitter on February 3, that the property seizure was “a consequence” his investigation. This is despite the fact that ZachXBT has not been publicly acknowledged by the FBI.
ZachXBT stated, “I hope to see more phishing fraudsters suffer a similar fate in order to injure so many people within this arena.” “I look forward seeing more phishing fraudsters suffer a similar fate in future.”
Some joked with one another that the FBI’s recent seizure was a boon to Ape NFT.
ZachXBT was able, with the help of many key indicators, to discover Senecal’s identity, on-chain behavior, and his identity.
ZachXBT explained to Senecal that he saw HZ bragging about his new watch via social media and he reached out to “a few mutual friends” who sell watches to him. Zach’s explanation was published in a medium post on September 2, 2022.
Senecal was disappointed to learn that the transaction was completed via the blockchain with USD Coin as the medium (USDC).
It is not the first instance that ZachXBT’s research has been a significant factor in aiding government officials. The French national cyber unit acknowledged ZachXBT’s assistance in helping them capture and prosecute a group of fraudsters accused of stealing $2.5million worth of NFTs through phishing schemes. ZachXBT’s information enabled ZachXBT and ZachXBT to help in the investigation.
