Authorities have arrested several suspects involved in a cryptocurrency hack of the Holograph platform in mid-2024 after months of investigations. According to reports, this group of hackers coordinated together to hack the platform, which resulted in a loss of $14.4 million dollars’ worth of HLG tokens.

The hackers were able to pull off their scheme by identifying and exploiting a vulnerability in Holograph protocol’s operator contract. This allowed the group of individuals to create over one billion HLG crypto tokens in a proxy wallet. This sudden influx of tokens caused the value of existing HLG crypto tokens to freefall. Before the hack, the tokens were valued at $0.014, but nine hours after the incident, the tokens were valued at $0.0029.

According to internal investigations conducted by Holograph, experts believe this attack was conducted by a disgruntled former contractor. Thankfully, international investigative units and police units coordinated together to identify and track down the culprits responsible for the incident. The investigation was led by the Office of Cybercrime Prevention (OFAC), but several groups contributed to the success of the mission including the Brigade for the Suppression of Banditry (BRI), Europol, the Italian Anti-Mafia Investigation Directorate, and the Royal Cayman Islands Police Services (RCIPS).

The group of suspects was discovered in Italy. Now, they’re awaiting extradition to France. The group will face charges related to crypto hacking.

Crypto Crimes that Cross Physical Borders

In France, getting convicted of crypto hacking could result in penalties of up to five years in prison and fines of up to €75,000. In America, the Computer Fraud and Abuse Act makes it a felony offense to attempt to gain access to a protected computer for financial gain, and a conviction could land you in federal prison for up to ten years. In China, cryptocurrency trading has been banned since 2021, and any attempt at crypto hacking could result in a penalty of up to ten years in prison and fines of up to 500,000 Yuan.

Extradition is the process of one jurisdiction apprehending a suspect and transferring custody of the individual to another jurisdiction. Extradition between countries is usually dictated by an extradition treaty. In general, as long as the accusations against the suspect are a crime in both counties and both counties are confident that the suspect will have a fair trial, countries cooperate with extradition requests.

Here at Bukh Global, our international law firm can help you navigate crypto-related criminal allegations, even when they cross physical borders. When other countries accuse you of committing a digital currency crime, they could have the right to seek extradition. The United States may cooperate with that request and send you overseas to face trial in another country.

The representatives here at Bukh Global will assist you in your international pursuit of justice.

Schedule your free case review with our team of global legal experts now to discuss the specifics of your case in more detail with a member of our law firm.