- Prosecutors have opposed bail for teenage crypto hacker Veer/Chatel
- Chatel pleaded guilty to participating in a $245 million Bitcoin theft in November, and authorities worry he may flee if freed
- The FBI has seized $37 million in crypto at Chatels home and alleges involvement in another $3 million in fraud
The U.S. government has opposed bail for 19-year-old Veer/Chatel, who has pleaded guilty to participating in a massive $245 million Bitcoin heist. Chatel admitted in November that he was part of a gang that carried out a social engineering attack on wealthy individuals, and authorities are concerned that, if released on bail ahead of his trial, Chatels extensive international network could see him smuggled out of the country. Prosecutors emphasized that Chatel, released on bond pending sentencing and prepared to testify against co-conspirators, allegedly continued to participate in illicit schemes, including a $2 million scam and up to $3 million more fraud while on the loose.
Elaborate Social Engineering Plot Netted $245 Million
According to recently unsealed court documents, Chatel admitted to orchestrating a social engineering attack in August 2024, where he and his cohorts pretended to be tech-support agents and manipulated victims into revealing private keys. Their coins were naturally swept from their wallets within minutes, with a staggering $245 million amassed through this method.
Chatels plea covers counts of wire fraud and money laundering, and prosecutors say he used trusted professional launderers along with co-defendants Malone/Lam and Jeandiel/Serrano to conceal the funds, purchasing high-end watches, designer clothes, and cars.
Chatel Remains a Flight Risk
Even after being released on bond, Chatel allegedly continued criminal activity, stealing about $3 million via at least 50 similar schemes, including a $2 million fraud in October 2024 targeting a sole New Jersey victim. Chatel reportedly lost $200,000 of stolen money in a single gambling bet just minutes after receiving it, demonstrating a continued disregard for the law, according to Judge Colleen Kollar-Kotelly. He also reportedly looked into studies abroad, booking an entrance exam in India and researching colleges in Dubai, prompting concerns he planned to flee the U.S.
When searching his house, the FBI reportedly found $37 million worth of stolen cryptocurrency during a search of Chatels home, but this was just the start of the shocks: shortly after the original theft, Chatels parents in Danbury were kidnapped and assaulted in what officials say was a ransom attempt. In response, prosecutors warned that co-conspirators could easily pay for Mr./Chatel to flee the country in an effort to avoid him testifying against [them].
Chatel faces a sentencing guideline range of 19.5 to 24.5 years in prison and a fine of up to $500,000. Despite government objections to bail, his attorneys have argued that the teenager has shown cooperation and remorse, offering strict supervision. A judge is expected to decide on his release status ahead of a sentencing hearing scheduled for later this year.
