In a joint effort called “Operation Hyphen,” cryptocurrency exchange Kraken collaborated with the South East Regional Organised Crime Unit (SEROCU) to recover and return over $2 million worth of stolen cryptocurrency. The investigation focused on a fraudulent website called “iotaseed.io,” created by a 40-year-old individual from the Netherlands named Wybo Wiersma. Wiersma allegedly exploited unsuspecting victims by offering a secure platform for generating IOTA crypto seeds. However, he predetermined the seed phrases, allowing him to gain control over their tokens. Wiersma transferred more than €10 million worth of IOTA tokens from multiple victims to various cryptocurrency trading accounts. He was subsequently arrested and sentenced to four and a half years in prison for theft. SEROCU seized approximately £2.37 million in cryptocurrency from an exchange under the Proceeds of Crime Act, marking the first instance in the UK where such legislation was used to confiscate assets from a cryptocurrency exchange. The funds were ordered to be used for restitution to the victims, and Kraken played a crucial role in facilitating the conversion of the recovered crypto assets into GBP. The collaboration between law enforcement and the private sector enabled the victims to reclaim their stolen funds. The operation’s success highlights the importance of partnerships and innovation in combating cryptocurrency scams and ensuring justice for victims.

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Information	Details
Geography	Europe
Countries	🇳🇱
Sentiment	positive
Relevance Score	1
People	Tim Metcalfe, Matthew Barber, Wybo Wiersma, Lana Sinelnikova, Rob Bryant
Companies	Kraken, National Police Chief’s Council (NPCC), South East Regional Organised Crime Unit (SEROCU), Financial Conduct Authority (FCA), Thames Valley Police & Crime Commissioner
Currencies	IOTA
Securities	None