A Queens auto body shop owner has been left devastated after losing his $300,000 retirement savings in a sophisticated Bitcoin theft orchestrated by a young California man and his family. The victim, a 61-year-old resident of Jamaica, Queens, had 5.75 Bitcoin—worth $92,000 at the time—stolen from his Blockchain digital wallet in November 2022, according to the Queens District Attorney’s office.
The alleged mastermind behind the theft, Aaron Peterson Jr., who was only 20 years old at the time, reportedly used the stolen cryptocurrency to finance a lavish lifestyle. Authorities revealed that Peterson, alongside his parents, Aaron Peterson Sr., 39, and Autumn Clark, 37, were involved in the elaborate scheme that culminated in the purchase of luxury items, including a diamond pendant, a Rolex watch, and a Mercedes-Benz.
The value of the stolen Bitcoin has since tripled, adding to the victim’s financial distress. On Friday, Peterson Jr., his parents, and four accomplices were indicted on charges of grand larceny, money laundering, identity theft, and a series of related crimes, announced Queens District Attorney Melinda Katz.
The victim, who had purchased the cryptocurrency in 2017 with plans to use it for his retirement, became aware of the theft when he noticed unauthorized activity in his account. In a desperate bid to recover his lost savings, he reported the incident to Assemblyman Clyde Vanel’s office, who subsequently alerted the Queens District Attorney’s office, prompting an investigation.
According to prosecutors, the stolen funds were laundered through a process known as a “peel chain.” Over eight months, the participants allegedly transferred the Bitcoin in a series of small transactions to individual wallets, effectively disguising the origins of the funds. The cryptocurrency was then converted into cash via Cash App accounts, from which the money was withdrawn.
Among those indicted are 39-year-old Dontay Brown and 22-year-old Ronald Moland, Jr., both of whom are accused of participating in the scheme. Authorities have also identified two additional suspects whose identities have not been disclosed.
The case highlights the vulnerabilities of digital currencies and the growing sophistication of cybercriminals in exploiting these assets. As Bitcoin and other cryptocurrencies gain mainstream acceptance, the risks associated with their security become increasingly apparent, particularly for those who may not be fully aware of the complexities involved in safeguarding their digital assets.
This incident serves as a stark reminder of the need for enhanced security measures and vigilance in the handling of cryptocurrencies. For the victim, the theft represents a significant loss, not just of money but of the financial security he had carefully built over the years.
The Queens District Attorney’s office continues to investigate the case, urging anyone with information to come forward as they work to bring all those involved to justice.
