Five Members of US National Guard Arrested for Alleged Bitcoin Scam
Bitcoin scams are the latest in the financial world. Ever since its inception in 2009, Bitcoin scams were reported across the globe. The recent involvement of US Army Guardsmen in such scams has shocked the Finance World.
Five members of the District of Columbia National Guard were arrested for using bitcoins to buy stolen credit and debit cards. They used the stolen cards to buy a number of luxury items, gift cards and electronics. It has been reported by that Bitcoin remains the preferred digital currency to buy illicit goods online.
Three guardsmen, Derrick Shelton, James Stewart and Quentin Stewart were arrested after being charged with fraud in May 2015. They were charged of using bitcoin to buy stolen credit and debit card credentials online. They were also charged to use magnetic strip re-encoding software to apply the stolen credentials to the existing cards that were in their possession. The crime took place between July 2014 and May 2015, as per reports from US Attorney’s Office for the District of Maryland.
As per the government release the guardsmen purchased stolen debit and credit card information of customers holding federal credit union accounts, around Maryland.
The alleged army guardsmen then used the stolen card numbers to buy electronics, luxury items and gift cards from the Army and Airforce Exchange Service. It is a retail chain available in the military bases.
It is expected that the three guardsmen will serve as much as 20 years in prison, if the allegations were proved in the court of law
This is not the only fraudulent incident involving National Guardsmen. Jamal Moody, an Army guardsman was charged in a separate but similar crime. He too used bitcoins to buy stolen credit and debit card credentials online. He plead guilty and is awaiting sentencing.
On another separate incident, Vincent Grant was arrested and faces seven and a half years in prison. He was accused of an access device fraud charge. Both Jamal and Vincent used stolen card information to buy $2,196 worth of goods from AAFES (Army and Airforce Exchange Service).