Following a report from blockchain sleuth ZachXBT, the US Federal Bureau of Investigation has seized NFTs and cryptocurrencies valued at over $260,000.
- The seizure was made possible when a self-described crypto detective thoroughly investigated Chase Senecal.
- Although the crypto sleuth claimed in a recent Twitter thread that his investigation resulted in the asset arrest, the FBI has not officially acknowledged ZachXBT for his investigation of the hacking.
Forfeiture Report
Chase Senecal, a resident of Brunswick, Maine, has allegedly had several assets taken from him by the FBI, including 86.5678 ETH ($116,433) and two NFTs, Bored Ape Yacht Club #9658 ($95,495) and Doodle #3114 ($9,361). The agency also took a $41,000 Audemars Piguet Royal Oak Watch.
Investigation by ZachXBT
Chase Senecal, also known online as HZ, was thoroughly investigated by ZachXBT, a self-described crypto detective who made the seizure possible. He tweeted on September 1 that it was “great to know one of the key perpetrators (Chase Senecal) for NFT/crypto phishing attempts has been discovered” after “months and months of tracking their gang.”
The crypto investigator discovered that the account used to purchase the watch was connected to many NFT hacks after following transactions involving those attacks. His observations appeared to be noted by the FBI, as they confiscated the materials on October 24, 2022, a few weeks later.
Summary of the Investigation
A synopsis of the inquiry claims that in June of last year, Cam (SIM swapper) sold Senecal access to the Twitter panel, which he then utilized to acquire access to Twitter accounts and defraud NFT holders. Senecal afterward bought the AP watch with the money he had stolen, which got him into trouble. Numerous Discord server attacks have been linked to the address HZ paid for the watch.
Except for the fact that all of the estates were apprehended on October 24, the FBI’s announcement contained little else about the occurrence. Furthermore, it needs to be clarified how many legal issues Senecal faces.
Although ZachXBT claimed in a recent Twitter thread that his investigation resulted in the asset arrest, it should be noted that the FBI has not given ZachXBT official credit for his analysis of the hacks. As a result of my thread, the FBI took cryptocurrency, BAYC 9658, AP watch, and Doodle 3114 from the phishing scammer known as Horror (HZ) alias Chase Senecal, the man said.
More than 600 Discord servers and 12 Twitter accounts were allegedly infiltrated by a multi-million dollar crypto scheme, according to a previous claim made by ZachXBT about Senecal. Senecal’s intrusions have impacted a few reports associated with the NFT project JRNY Club and the animator DeeKay Kwon.
The arrest of Bitzlato Founder
According to reports, the FBI also assisted in the capture of Anatoly Legkodymov, the Russian creator of the cryptocurrency exchange Bitzlato, registered in Hong Kong and accused of handling $700 million in illegal funds. Legkodymov was detained in Miami on Tuesday on suspicion of operating the exchange as an unlicensed money-transmitting company that made it simple for illegal monies to be transferred, according to a filing made on January 18 by the U.S. Department of Justice. Documentation stated:
“Since May 3, 2018, Bitzlato has handled transactions totaling almost $4.58 billion in cryptocurrencies. These transactions include money intended for use in illegal activity and the proceeds of crime in significant amounts.”
The FBI has learned that between May 2018 and April 2022, users of Hydra transmitted over $170.6 million in cryptocurrency to wallets on Bitzlato. Users of Hydra sent an additional $218.7 million to non-Bitzlato addresses during that time, where they were then transferred to Bitzlato.
Conclusion
Crypto scam investigators are experts at spotting and looking into cryptocurrency-related fraud. People like ZachXBT employ various techniques, such as transactional data analysis, internet forum monitoring, and intelligence gathering, to safeguard the public from financial losses and hold offenders accountable.
