Two men supposed to be involved in the theft of millions of dollars from a California-based cryptocurrency company have been apprehended by the Oklahoma police, according to local media.
Fletcher Robert Childers, and Joseph Harris 21, of Missouri, were apprehended on the notion of grand theft, a first-degree felony, and identity theft, a Class C misdemeanor. If found guilty, the couple would be charged with up to 35 years of imprisonment, according to Oklahoma state laws.
Court documents filed by Crowd Machine, a San Jose-based decentralized IT company, mentioned Childers and Harris for their supposed role in a $14 million theft. The report accused the couple of changing the victim’s mobile sim card with a fake one to steal his identity and phone number. This made it possible for the couple to steal from a cryptocurrency wallet registered with the stolen sim and got away with $14 million worth of CMCT tokens.
A probe with the Santa Clara County District Attorney’s Office and members of the state’s Regional Enforcement Allied Computer Team (REACT) joint forces with the local Oklahoma police in tracking the phone used in the theft. It was later traced to a hotel, where the successive arrests were made.
The seized phone, based in the court documents was bought by two white men from a close by Walmart.
Crowd Machine only just ended a pre-ICO round of CMCT tokens. For the time being, the company has been released 500 million token units to the market and was having 1.5 billion ICO tokens ICO tokens in reserve. Following the hack, it was claimed that the accused transferred 1 billion CMCT to cryptocurrency exchanges, some outside the United States. Crowd Machine urged its members to be alert in dealing with the compromised wallet address. Most exchanges stopped trading of CMCT tokens after the warning was announced.
“It is highly recommended that no one purchase CMCTs until the criminal investigations have ceased, at which time, we expect closed exchanges to re-open. Purchases of stolen tokens by those not involved with the theft will be honored,” Craig Sproule, the CEO and co-founder of Crowd Machine wrote.