Kent Halliburton, the CEO of Sazmining, was left stunned and dismayed after losing over $200,000 worth of bitcoin to scammers who impersonated wealthy investors. The incident occurred during a series of meetings with Even and Maxim, representatives of a Monaco-based family office, at the Rosewood Hotel in Amsterdam.
Even proposed Halliburton sell around $3,000 in bitcoin, which Halliburton initially hesitated but later agreed to as a “dating ritual.” However, after meeting with Maxim, who wore expensive clothing and had a Rolex watch, Halliburton was asked to move large sums of money into a bitcoin wallet app trusted by the family office.
The scammers likely exploited a security weakness in Halliburton’s phone, allowing them to record the seed phrase for his newly created wallet address. The thieves then used this information to drain Halliburton’s wallet and launder the stolen funds through various crypto platforms and exchanges.
Sazmining’s financial future was uncertain after the theft, but the company was able to weather the blow by delaying payments and extending loan terms. One of the board members filed reports with law enforcement agencies in several countries, including the US, UK, and Netherlands.
The incident highlights the growing threat of sophisticated cryptocurrency scams targeting executives who hold large balances. Law enforcement agencies are struggling to keep up with the sheer volume of crypto-related scam activity, making it difficult for victims to recover their stolen funds.
Halliburton, who had invested four years of his life into building Sazmining, is still recovering from the loss. However, he remains hopeful that the company can bounce back and continues to work closely with law enforcement agencies to prevent similar incidents in the future.
Source: https://www.wired.com/story/bitcoin-scam-mining-as-service