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Seven people, including Aaron Peterson Jr. and his parents, have been indicted for stealing and laundering over $300,000 in Bitcoin from a Queens resident.
MOHAMED FARGHALY
mfarghaly@queensledger.com
Seven individuals have been indicted in connection with the theft of more than $300,000 in Bitcoin from a Queens resident, Queens District Attorney Melinda Katz announced on August 9. The indictment, issued by a grand jury, includes charges of grand larceny, money laundering, identity theft, and related offenses following an extensive investigation into a cyberattack on a private cryptocurrency wallet.
The hack, which occurred in November 2022, saw 5.75 bitcoins stolen from the victim’s Blockchain.com wallet. At the time of the theft, the Bitcoin was valued at approximately $92,000, but its current worth exceeds $300,000. The stolen cryptocurrency was allegedly laundered using a method known as a “peel chain,” involving a series of small transactions to obscure the trail.
The Queens District Attorney’s Office, alerted by Assembly Member Clyde Vanel, swiftly launched an investigation. Over the next eight months, the Cyber Crime Unit and Detectives Bureau uncovered more than 250 transactions used to launder the stolen funds through the “peel chain.” This investigation traced the funds to multiple deposit addresses on Cash App and other financial services, leading to their identification and subpoena.
District Attorney Katz praised the work of the Cyber Crimes Unit and Detectives Bureau.
“The individuals allegedly responsible for this operation went through a meticulous series of steps to hide their criminal activity,” Katz said. “My dedicated Cyber Crime and Cryptocurrency Unit and Detectives Bureau worked this case for months to figure out who was behind these transactions and to bring those people to justice. I thank Assembly Member Clyde Vanel for alerting us to this important case and encourage any Queens resident who may have been a victim of cryptocurrency theft to contact our Cyber Crimes team at 718-286-6673 or CyberCrimes@queensda.org.”
She also urged any other potential victims of cryptocurrency theft in Queens to contact her office.
Assembly Member Clyde Vanel expressed support for the District Attorney’s efforts.
“We are encouraged by the efforts of the Queens District Attorney Melinda Katz to protect Queens residents from technology-related fraud,” Vanel said. “We want to help ensure that Queens residents are able to invest, transact and transfer value in a safe manner. Today shows that we will bring justice to those who attempt to defraud Queens residents.”
Among those indicted are alleged mastermind Aaron Peterson Jr., 20, and his parents, Aaron Peterson, 39, and Autumn Clark, 37, all from Sacramento County, California. They were extradited and arraigned Friday on multiple charges including grand larceny in the second degree and money laundering in the second degree. They face potential sentences of 5 to 15 years in prison if convicted on the top count. Co-defendants Dontay Brown, 39, and Ronald Lamar Moland Jr., 22, both from California, are expected to be arraigned at a later date. Two additional defendants remain at large.
According to the indictment, the stolen Bitcoin was moved through a series of transactions to various Cash App accounts. Among the identified accounts, defendant Clark received approximately $22,500 in 18 transactions, Moland received about $22,000 in eight transactions, and Brown received $19,700 in three transactions. Peterson Sr. received approximately $9,500 in 33 transactions. The laundered funds were eventually pooled into an account controlled by Peterson Jr., who used the money for personal luxuries, including a diamond necklace and a Mercedes-Benz.
The investigation, led by Sergeant Linda DenDekker and Detective Investigator Daniel Yi Suh under the supervision of Lieutenant Joseph Falgiano, received critical assistance from FTI Consulting, the California Department of Justice’s Cybercrime Section, and other agencies. The prosecution will be handled by Assistant District Attorneys Elizabeth Speck and Catherine Jahn, among others.
The defendants are presumed innocent until proven guilty.
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The theft, which involved a complex scheme of 250 transactions, was traced through Cash App and other financial services.
