The author of the largest cyber-financial attack in Italy identified

Published on: 12/21/2020 8:15 AM

The author of the largest cyber-financial attack in Italy, one of the largest ever carried out in the world in the cryptocurrency sector, has been identified by the Postal Police: is a 34-year-old Florentine responsible for a 120 million euro “hole” in the hacked computer platform “Bitgrail”. More than 230 thousand savers scammed. The man is charged with computer fraud, car laundering and fraudulent bankruptcy. The Italian Postal Police marks a world milestone in the field of cryptocurrency investigations, with a one-of-a-kind investigation with a high technological impact.

Investigators from the Florence Postal Police and the Cyber-Financial Crimes Section of the Central Service of the Postal Police of Rome, and with the help of the staff of the Financial Police of the Judicial Police Section of the Florence Public Prosecutor’s Office, they are carrying out the precautionary measure. of the prohibition to carry out commercial activities and to hold management positions in companies, issued by the preliminary investigation judge dott. Gianluca Mancuso, against FF, a 34-year-old from the province of Florence, sole director of an Italian company that manages a cryptocurrency exchange, responsible for a 120 million euro computer fraud, fraudulent bankruptcy and recycling of cars.

For the first time in Italy and Europe, fraudulent and distracting behavior was documented to the detriment of investors, carried out entirely on computer platforms and the use of virtual currencies.

The activity is part of a broader strategy aimed at combating economic crime and, in particular, illegal enrichment through the improper use of online platforms and computer tools that the investigations carried out reveal a growing increase, developed by the Florence Public Prosecutor. , led by Chief Prosecutor dott. Giuseppe Creazzo, who entrusted the investigation to Assistant Prosecutor dr. Luca Tescaroli and assistant prosecutor dott. Sandro Cutrignelli of the Computer Crimes Department, and Deputy District Attorney dott. Gabriele Mazzotta and Assistant District Attorney Dott. Fabio Di Vizio from the Department of Corporate Crimes and Insolvency.

The complex and delicate investigation carried out by the Florence Department, with the productive collaboration of the financiers who work in the Florence Public Ministry, was launched in February 2018, following a complaint filed by FF, sole administrator of the exchange platform, related to theft. of a large sum of the cryptocurrency called “NANO” XRP for an approximate value of 120,000,000.00 euros, made by exploiting an error in the Nano protocol and carrying out illegal transactions, all related to January 2018.

The man, already known by researchers as a provider of virtual currency called Bitcoin (BTC), used as a financial payment instrument in extortion phenomena related to the cryptolocker virus, despite his apparent collaborative behavior, has prompted researchers not to do so. . exclude its real participation in the matter, especially as a result of conflicting and contradictory statements of the same and its collaborating partners.

With the passing of the months and the continuation of the investigative activity – with the coordination of the Postal Police and the Rome Communications Service and the support of the American FBI, also with technical interception activities and complex computer analysis of the database from the exchange – the participation of man in the crimes in dispute arose. In fact, investigations carried out have shown that the illicit theft of cryptocurrencies took place several times, starting in June 2017, and that FF did not knowingly prevent them by not implementing the platform’s security with one of the available methods disclosed by the Nano Developers Team. (American company that created the cryptocurrency), thus providing hackers, not yet identified, a huge unfair profit, in the amount of about 11,500,000 XRB, equivalent to about 120,000,000 euros, damaging more than 230,000 people in all the territory. world (also with the aggravation of having committed the acts with abuse of the capacity of operator of the system).

By keeping the platform open, despite having identified the illicit withdrawals from Nano Moneta, and failing to inform the Nano Team, the community and users of the verified shortage, at least of the large quantity withdrawals that took place in July and October 2017, FF continued to attract new users, which in a few months went from 70,000 to about 217,000, benefiting from the notoriety of being the first and only Italian exchange to deal with XRB (which later became Nano), also taking advantage of the circumstance of the growing increase in the value of the cryptocurrency (just think that between December 14 and 31, 2017 the value of the cryptocurrency XRB Nano goes from $ 3.17 to $ 20.45, with a differential increase greater than Bitcoin), despite being aware of the lack of sufficient funds in XRB to cover the personal wallets of the thousands of users of the platform, worldwide, obtaining an unfair profit corresponding to the profits obtained s by deposits and ding, which increased dramatically in the period between December 2017 and February 2018 precisely in correspondence with the exploit of the XRB (Nano) in the market. On the other hand, it should be noted that when users acquired XRB Nano, in the period between December 1, 2017 and February 28, 2018, they transferred and paid BITCOIN for a value equivalent to 593,527,000 euros. The increase in FF commissions was paid to this entry and the subsequent transactions

Investigators also through complex computer investigations and analysis of online banking transactions, with the collaboration of officials of the FIU (Financial Information Unit) of the Bank of Italy and the PG Section – Guardia di Finanza Rate of the Florence Prosecutor’s Office , found that the man, three days before the filing of the complaint, had transferred to his personal account, dependent on the digital currency exchange company “The Rock Trading Srl” in Malta, 230 cryptocurrencies Bitcoin BTC (which at the rate of change in the reference period corresponded to approximately 1,700,000 euros), attributable to the clients of the exchange platform. 3652 addresses out of 3890 total addresses (which originated the transactions present in the personal account, were found present in the exchange platform database, however, not detectable when consulting the databases related to traditional monetary and financial assets, in order to specifically obstruct the identification of their criminal origin. Values ​​that FF, in May 2018, partially transformed into legal tender by converting it into the amount of 514,690.00 euros through commercial operations. Subsequently, it tried on several occasions to withdraw , in an attempt to “empty” the account. The timely intervention of the prosecutors in charge of the investigation avoided their distraction, by seizing all the suspect’s accounts, including the results in cryptocurrency up to the value of 120,000,000.00 euros (sum corresponding to exposure to debt).

It was undoubtedly an articulated and complex operation, of which there were no precedents, carried out for the first time in Europe with innovative techniques by the Florence Postal and Communications Police, through the creation of a protocol for the transfer of cryptocurrency. placed under seizure.

In addition, 6 search decrees issued against FF and its partners and collaborators were carried out, with the seizure of a large number of computer devices (PC, hard disk, pendrive).

As a result of the investigations carried out, the GIP decided to accept the request of the prosecutors, issuing the precautionary measure of the prohibition of carrying out commercial activities and occupying management positions in companies already during the preliminary investigations, since it recognized the existence of serious indications of guilt collected, the risk of the subject inherent in his incessant activity aimed at depriving corporate creditors of assets and securities with which they could have satisfied their credit and the risk that FF, endowed with unusual technical skills, could easily repeat criminal behavior, By engaging in other IT frauds to the detriment of creditors through the operation of a business.

Finally, the activity testifies to the high competence and professionalism, as well as the constant commitment of the Postal Police to protect the cyber economy and critical, IT and financial infrastructures, together with the contribution of the Guardia di Finanza in its role as economic police. – financial, an increasingly important activity also in light of the difficult times caused by the ongoing epidemiological emergency. In fact, online is no longer perceived as an accessory moment, but as a substantial moment in people’s lives, who, not being able to take advantage of the usual financial instruments, have decided to invest in online trading and digital currencies, in such a way . properly diversify your investments, but at the same time expose yourself to the risks of computer fraud.