First Crypto Theft Case Sent to Court in Armenia

The investigation into a significant computer theft, involving over 88 million AMD, has been completed following a report by a 36-year-old resident of Yerevan. Initially initiated by the National Security Service (NSS) and later transferred to the Investigative Committee, the case centers on the theft of cryptocurrency from the complainant's wallet.

On April 25, 2023, the resident, identified as O.K., reported to the NSS that 129 Ethereum, worth approximately $236,000, was stolen from his cryptocurrency wallet under unknown circumstances. The investigation by the Cybercrime and High-Tech Crime Division of the Armenian Investigative Committee established that the theft was perpetrated by another 36-year-old resident of Yerevan.

The accused, a programmer by profession, illegally accessed O.K.'s cryptocurrency wallet on March 19, 2023, transferring the equivalent of 88,303,352 AMD worth of Ethereum to his own crypto wallet.

Subsequently, in an effort to cash out, the perpetrator transferred 9 and 20 Ethereum on March 19 and June 25, 2023, respectively, to a crypto wallet opened in his name with an American company. He then converted part of these assets into DASH and Ripple cryptocurrencies before withdrawing them from the account.

The Ethereum transferred as Ripple was subjected to three transactions to a cryptocurrency wallet of the company he owned, followed by further transfers to various accounts, both local and foreign.

The resident has been charged under Article 257, part 3, point 3 of the Armenian Criminal Code. As a preventive measure, he was initially remanded in custody, which has since been replaced by house arrest for two months and a bail of 15 million AMD.

During the investigation, the accused fully reimbursed the damages caused. The investigation has concluded, and the case materials have been submitted to the supervising prosecutor with a view to approval and referral to court. This marks the first criminal case regarding cryptocurrency theft sent to court in Armenia.