A 19-year-old Canadian who overstayed his U.S. visa charged in $13 million crypto fraud

A 19-year-old Canadian man faces up to 20 years in prison if convicted of cryptocurrency fraud and money laundering charges in Florida.

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Canadian, 19, accused of running a multimillion-dollar cryptocurrency fraud ring out of South Florida spent money on luxury cars, jewelry and enjoying the Miami nightlife while overstaying his visa to stay in the U.S., federal prosecutors allege.

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A federal grand jury indicted Trenton Richard David Johnston and alleged co-conspirator 28-year-old Brandon Michael Tardibone of Miami this week, in what authorities describe as a US$13 million (CAD$17.8 million) crypto and money laundering scheme.

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Prosecutors allege Johnston posed as customer-support representatives for a major search engine and crypto companies to trick victims into surrendering access to digital accounts and cryptocurrency wallets. Once access was obtained, investigators allege Johnston and Tardibone drained the accounts and laundered the money through a web of financial transactions designed to conceal its source.

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Authorities believe there are other victims yet to be identified.

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According to court documents obtained by National Post, Homeland Security Investigations began looking into Johnston when a confidential source showed law enforcement text messages in which he allegedly said he “was making millions of dollars by defrauding” people. The source explained they had witnessed him engaging in the fraud using a gaming computer and “impersonating entities like Google in speaking with victims to gain access” to their accounts. 

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On March 24, local police stopped Johnston’s Rolls-Royce in North Miami and arrested him on state charges for possession of a controlled substance.

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Three confidential witnesses who were in the vehicle with him at the time, all of whom told authorities they received money from Johnston at times, said they had witnessed him engaging in the fraud using a gaming computer and “impersonating entities like Google in speaking with victims to gain access” to their accounts. One of them admitted to also participating and stealing approximately $20,000, but estimated “Johnston’s proceeds to be in the tens of millions of dollars based on their conversations” and what she witnessed.

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A search of his residence uncovered “handwritten notes containing seed phrases for various cryptocurrency wallets.”

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Forensic examination of his cell phone revealed messages with Tardibone in which they “made multiple references to having successfully ‘hit,’ ‘smacked’ or otherwise obtained 185 BTC (bitcoins) from a victim, which they refer to as a ‘target’ or ‘targ.’”

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They also corresponded about having the money cleaned and using it to purchase luxury vehicles and short-term home rentals in Miami and Los Angeles. 

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Federal authorities allege more than $1 million in stolen cryptocurrency was used to fund an extravagant lifestyle that included leased exotic vehicles, high-end jewelry and luxury entertainment.