A brazen cryptocurrency scammer known as “Daytwo” has stolen over $4 million from unsuspecting Coinbase users through an elaborate phone scam operation. The mastermind, identified as Christian Nieves, ran a small call center from New York where he and his associates impersonated Coinbase customer support staff to fleece victims of their digital assets.
The con was shamefully simple. Nieves and his crew would contact targets, directing them to phishing websites designed to capture login credentials and seed phrases. They’d walk victims through setting up new Coinbase wallets, stealing private keys during the process. Using hardware wallets could have prevented many of these thefts by keeping assets offline and away from hackers. The scammers particularly targeted elderly victims who were less familiar with cryptocurrency security practices. One elderly victim lost $240,000 in a single November transfer. Ouch.
The digital shell game was cringeworthy in its effectiveness—fake support calls leading victims straight into credential-stealing traps.
These weren’t random hacks. The operation involved structured phone scripts and persistent social engineering. Nieves recruited associates, including someone known as “Paranoia” (aka Justin), who helped run the scam calls.
They shared the proceeds. Well, until Nieves reportedly began stealing from his own accomplices when funds started running low. Honor among thieves? Not a chance.
What did Daytwo do with all that stolen crypto? Gambled it away, mostly.
The team promptly transferred stolen assets to gambling sites like Roobet, converted some to privacy coins like Monero, and splurged on luxury items. Cars, watches, the works.
Forensic analysis of casino deposits linked the operation to over 30 suspected thefts.
The kicker? Nieves flaunted his ill-gotten gains on social media.
Photos and videos of expensive purchases. Zero attempt to hide.
He even mockingly responded to investigation coverage, directly antagonizing crypto investigator ZachXBT online.
The case broke wide open thanks to ZachXBT’s blockchain detective work.
Using transaction tracking and even a private recording of the elderly victim scam, investigators pieced together Nieves’ operation from start to finish.
The thieves used Monero cryptocurrency to obscure the trail of stolen funds and make it harder for authorities to follow the money.
More victims likely remain unidentified as authorities continue to investigate.
The gambling sites probably got the last laugh, though.
Casino deposit patterns showed diminishing amounts over time as Daytwo’s fortune dwindled away at the digital tables.
