Fake Uber Driver Arrested in $300,000 Cryptocurrency Theft Scheme in Arizona

TLDR

• Arizona man Nuruhussein Hussein arrested for allegedly stealing $300,000 in crypto by posing as Uber driver outside W Hotel Scottsdale
• Hussein allegedly asked to borrow victims’ phones, then transferred crypto from their Coinbase accounts
• Two separate incidents occurred in March and October 2023, targeting different victims
• Suspect faces charges of theft, fraud, and money laundering; held on $200,000 bond
• Case highlights growing trend of offline crypto theft, with 19 recorded incidents globally in the past year

A man in Scottsdale, Arizona, has been arrested for allegedly stealing $300,000 in cryptocurrency by posing as an Uber driver outside a luxury hotel. The arrest marks the latest case in a rising trend of offline cryptocurrency theft.

Nuruhussein Hussein faces multiple charges including theft, fraud, and money laundering after allegedly targeting two separate victims in March and October 2023. The Scottsdale Police Department worked with U.S. Secret Service special agents to apprehend Hussein on December 11.

According to police reports, Hussein approached victims waiting outside the W Hotel in Scottsdale by pretending to be their requested Uber driver. He gained the victims’ trust by addressing them by name, though investigators have not revealed how he obtained this information.

The scheme allegedly involved Hussein asking to borrow his passengers’ phones. In one instance, he claimed his own device wasn’t working. In another case, when questioned about why the Uber app showed the driver hadn’t arrived, Hussein offered to help troubleshoot the problem.

Once he had access to the victims’ phones, Hussein allegedly transferred cryptocurrency from their Coinbase accounts. Police say he made both phone-to-phone transfers and moved funds to cold storage wallets, effectively making the transactions harder to trace.

Court documents reveal that when one victim became suspicious and asked for their phone back, Hussein allegedly made threats, telling them to “chill or something bad would happen.”

The investigation has led to strict bail conditions. A judge has set Hussein’s bond at $200,000 in cash, with requirements for electronic monitoring if he posts bail. Prosecutors successfully argued for these conditions, citing concerns about potential evidence destruction and flight risk.

Additional restrictions placed on Hussein include a ban on internet usage and international travel. Prosecutors noted his frequent trips to Ethiopia as a particular concern for flight risk. His next court appearance is scheduled for December 18.

The case has drawn attention to the growing issue of offline cryptocurrency theft. According to data from GitHub, there have been 19 documented cases of in-person crypto robbery worldwide in the past year, showing an increase from 17 cases in 2023.

These incidents represent a shift from purely digital theft methods to more direct, physical approaches to stealing cryptocurrency. The trend began tracking as early as 2014, when cryptographer Hal Finney faced an attempted extortion of 1,000 Bitcoin, worth $400,000 at that time.

Law enforcement agencies are adapting their approach to handle these hybrid crimes that bridge digital and physical theft. The collaboration between local police and the Secret Service in Hussein’s case demonstrates the evolving response to cryptocurrency-related crimes.

The W Hotel case has similarities to other recent crypto theft incidents. Just days before Hussein’s arrest, thieves in Melbourne, Australia, stole a Bitcoin ATM by driving through a shopping center window. The ATM was later found burning in a park.

Police are continuing their investigation into Hussein’s activities, suggesting there might be additional aspects to the case yet to be revealed. The involvement of multiple law enforcement agencies indicates the seriousness with which authorities are treating cryptocurrency-related crimes.

The method allegedly used by Hussein – gaining trust through impersonation and using threats to maintain control – follows patterns seen in other offline crypto theft cases. These tactics show how criminals are adapting traditional theft methods to target digital assets.

Court records show that Hussein’s scheme relied on quick access to victims’ phones and knowledge of cryptocurrency trading platforms. This suggests a level of preparation and understanding of both rideshare services and digital currency operations.

The case remains active, with investigators working to trace the stolen cryptocurrency and identify any potential additional victims. Local authorities are encouraging anyone with similar experiences to come forward.