Cash News
A Queens auto body shop owner lost his $300,000 retirement nest egg after a California man stole his Bitcoin — and used the funds to buy a diamond pendant, a Rolex and a Mercedes-Benz, authorities said.
The victim, 61, had 5.75 Bitcoin worth $92,000 in a Blockchain digital “wallet” when it was allegedly stolen by Aaron Peterson Jr., 20, in November 2022, the Queens District Attorney’s office said.
The digital currency is now worth more than triple, prosecutors said.
Peterson — who was still a teen at the time — was the “mastermind” behind the hack, which also involved his parents, Aaron Peterson Sr., 39, and Autumn Clark, 37, and four others.
The group was indicted Friday on charges of grand larceny, money laundering, identity theft and other crimes, according to Queens District Attorney Melinda Katz.
The victim, a Jamaica, Queens resident, bought the cryptocurrency in 2017 and was watching it grow in value over time, sources said.
He never made any transactions, and was believed to be counting on the Bitcoins for retirement when he noticed the unauthorized activity.
He reported the Bitcoin theft to Assemblyman Clyde Vanel’s office, who alerted the Queens district attorney, who launched the probe.
The funds were allegedly laundered over eight months through a series of small transactions sent to individual Bitcoin wallets, a technique known as a “peel chain,” the DA said.
The participants, including Dontay Brown, 39, and Ronald Moland, Jr., 22, as well as two unidentified suspects, deposited the crypto into Cash App accounts and then withdrew the dough, according to officials.
They put the remaining funds into a “pool account” belonging to the younger Peterson, who used it to buy the high end goods, according to prosecutors.
Damning video and photos obtained by The Post show Peterson Jr. counting stacks of cash, showing off jewelry he allegedly bought with stolen funds and even transferring the stolen crypto on his cellphone.
“The individuals allegedly responsible for this operation went through a meticulous series of steps to hide their criminal activity,” Katz said.
The five known suspects were arrested in California on July 24 and a search is underway for the other two.
Both Petersons and Clark face up to 15 years in prison each if convicted. They are due back in court in October.
“We want to help ensure that Queens residents are able to invest, transact and transfer value in a safe manner,” Vanel said.