Tuesday, July 16, 2024

A Zimbabwean crypto trader is currently facing legal charges for theft and money laundering after being accused of stealing digital assets worth over $457,000 from a client. The trader allegedly gained unauthorized access to the client’s crypto wallets by utilizing seed phrases and passwords that were initially provided to him for setting up the wallets.

The accused individual, Lloyd Chiyangwa, reportedly siphoned off more than $457,000 in assets from the crypto wallets owned by his client, as per the allegations put forward by prosecutors. It is claimed that Chiyangwa used the seed phrases and passwords obtained during the setup process of the wallets to facilitate the theft.

According to information from The Herald, Chiyangwa’s client had purchased the digital assets in July 2020 from a United Kingdom-based company while residing in India at the time. After returning to Zimbabwe in 2021, the client sought assistance from the crypto trader to establish five different wallets, namely Trust Wallet, Metamask, Exodus, Cosmostation, and Wemix.

The discovery of the theft occurred in May when the client attempted to engage in trading using the Trust Wallet and found the funds missing. It is reported that Chiyangwa had withdrawn the stolen funds from the client’s wallet in seven separate transactions. The largest individual withdrawal amounted to $261,500, while the smallest withdrawal was $5,155.

Allegations also state that Chiyangwa utilized the stolen funds to purchase two iPhones, a laptop, and a Mercedes Benz. Due to concerns that he may attempt to flee, prosecutors argued against granting bail to the accused trader. They highlighted Chiyangwa’s possession of two passports and ownership of two South African bank accounts that received a portion of the stolen money. The report mentions that the Harare regional magistrate, Marehwanazvo Gofa, has remanded Chiyangwa in custody while the court examines his bail application.

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Frequently Asked Questions (FAQs) about Zimbabwean crypto trader, theft

Q: What is the accusation against the Zimbabwean crypto trader?

A: The Zimbabwean crypto trader is facing charges of theft and money laundering after allegedly stealing digital assets worth over $457,000 from a client.

Q: How did the crypto trader gain access to the client’s digital assets?

A: The trader allegedly used seed phrases and passwords obtained during the setup process of the client’s crypto wallets to gain unauthorized access and siphon off the digital assets.

Q: What wallets did the client seek help in setting up?

A: The client sought assistance from the crypto trader to set up five wallets: Trust Wallet, Metamask, Exodus, Cosmostation, and Wemix.

Q: When did the client realize the theft had occurred?

A: The client discovered the theft in May when they attempted to trade using the Trust Wallet and found that the funds were missing.

Q: What items did the crypto trader allegedly purchase with the stolen funds?

A: It is alleged that the crypto trader used the stolen funds to buy two iPhones, a laptop, and a Mercedes Benz.

Q: Why do prosecutors consider the crypto trader a flight risk?

A: Prosecutors argue that the crypto trader poses a flight risk due to factors such as owning two passports and having two South African bank accounts that received part of the stolen money.

Q: What is the current status of the crypto trader?

A: The crypto trader has been remanded in custody while the court reviews their bail application.

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5 comments

CryptoFan4Life June 9, 2023 - 10:22 pm

Wow, can you believe this Zimbabwean crypto trader stealin’ over $457K worth of digital assets? That’s some serious theft right there. Gotta be careful who you trust with your wallets, folks.

Reply
CryptoWarrior June 9, 2023 - 10:22 pm

This is a reminder to always protect your seed phrases and passwords, my fellow crypto enthusiasts. It’s a shame that someone would take advantage of their client like that. Stay vigilant, everyone!

Reply
CoinHunter87 June 9, 2023 - 10:22 pm

Hold up, this crypto trader used the stolen funds to buy iPhones, a laptop, and even a Mercedes Benz? That’s some audacity right there. I hope justice is served and the client gets their assets back.

Reply
BitcoinGuru June 9, 2023 - 10:22 pm

It’s unfortunate to hear about these kinds of cases. This just goes to show that we need better regulations and security measures in the crypto industry. Let’s hope the court makes the right decision and sets an example.

Reply
CryptoQueen June 9, 2023 - 10:22 pm

This story is a wake-up call for anyone involved in crypto. Trust is crucial, and we must be cautious about who we let handle our digital assets. It’s disheartening to see such incidents tarnish the reputation of the crypto community. Stay safe out there, folks!

Reply

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