Pokemon collector found guilty in US$55 million crypto hack case

NEW YORK – A cybersecurity consultant was found guilty of stealing nearly US$55 million (S$70.4 million) in cryptocurrency, some of which was spent to acquire rare Pokemon cards and other collectibles.

Jonathan Spalletta was convicted by a New York jury on Oct 7 after just over two hours of deliberation.

Prosecutors accused Spalletta of carrying out two attacks in 2021 against Uranium Finance, a cryptocurrency exchange that shut down after he drained about US$55 million from the platform. 

Spalletta faces a maximum of 20 years in prison on a money-laundering count relating to his use of crypto mixers like Tornado Cash. US District Judge Jed Rakoff set his sentencing for Feb 16, 2027. 

The case drew attention in part because of what prosecutors said Spalletta later bought.

The US authorities seized more than US$3 million worth of rare Pokemon and Magic: The Gathering cards from his Maryland home, along with about US$31 million in cryptocurrency. 

Spalletta also spent more than US$600,000 on an ancient Roman coin commemorating the assassination of Julius Caesar and paid US$137,000 for a piece of the original Wright brothers Flyer that was carried to the moon by Neil Armstrong. 

Defence lawyers argued that Spalletta did not hack the exchange because he used publicly available functions built into its smart contracts rather than spoofed credentials or malicious code. BLOOMBERG