Court sentences Colorado resident to three years in prison for stealing cryptocurrency

From January 2014 through May 2021, prosecutors say, the man interacted with a woman who invested about $395,000 in cryptocurrencies during that time period. The investor approached Davis to help with the investment and provided direct access to her digital wallets.

With bitcoin and other cryptocurrencies rising over time, Davis began stealing assets from the victim and transferring them to his cryptocurrency addresses. The stolen funds were valued at approximately $2.1 million at the time of the crime. However, in 2021, when the woman discovered the deception, the value of the stolen cryptoassets exceeded $8 million. By that point, the defendant had already cashed out most of the stolen cryptocurrency, squandering the money on personal expenses.

In addition to the jail time, District Judge Wendy Beetlestone awarded the victimized woman more than $2.1 million in compensation for the cryptocurrency theft.

"It doesn't matter whether it's cryptocurrencies or cash that's stolen. We are talking about the theft of other people's money, and this crime will definitely be punished. The prosecutor's office will hold all cybercriminals who have harmed people accountable," prosecutor Jacqueline Romero proclaimed at the trial.

In May, a New York court sentenced a former Deutsche Bank (ETR:DBKGn) employee to 41 months in prison for cryptocurrency fraud. The clerk is also required to pay $1.5 million to affected investors.