Canadian Nationals Sentenced to Jail for Bitcoin Money Laundering

Vandana  |  Mar 19, 2020

Two Canadian nationals named Karanjit Singh Khatkar and Jagroop Singh Khatkar have been sentenced to jail for two years. Both of them were involved in the stealing of bitcoin via twitter scam. They were residents of Surrey, British Columbia.

Both Canadian nationals posed as HitBTC staff to fool people

In October 2017, a twitter handle named @HitBTCAssist was used to trick people. They were successful in fooling one through which they were able to gain 23.2 BTC which would price $118,000 today. These bitcoins were transferred to Karanjit Khatkar’s wallet from HitBTC’s wallet on Kraken exchange.

A press release by the Attorney's office of U.S. Department of Justice, this case of two Canadian nationals was scrutinized by the FBI. It has been reported that both of them have posed as HitBTC staff and pretend to discuss customer service matters in order to manipulate the victims. HitBTC is a crypto exchange which is based in Hong Kong.

They also somehow managed to convince one person from Oregon to give some details. These details included email, exchange account details and some more to easily compromise the victim's account.

Khatkars were ordered to pay $184,511

After this big stealing of bitcoins, both of them converted the whole stolen cryptocurrency into cash. They spent all of the stolen currency to have a luxurious lifestyle. They also bought a few casinos and luxurious cars from that money.

As soon as they were found guilty through the charges against them, they were ordered to pay the whole amount to the victim. Plus they will also have to pay an additional fine to the victim. A cheque of $142,349 has been paid to the victim by Khatkars. Total $184,511 will be paid by the Khatkars as they will be paying an additional amount of $42,162 to the victim.

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