The Philippine Department of Justice announced last week that two Russian nationals have been charged for stealing 340 million PHP (approximately $6.2 million) worth of cryptocurrency XRP from the local crypto exchange Coins.ph. According to the charges filed in the Taguig Regional Trial Court, the suspects, Vladimir Evgenevich Avdeev and Sergey Yaschuck, are facing charges under the Cybercrime Prevention Act.
How the Theft Occurred
Avdeev and Yaschuck, former consultants of the Philippine crypto exchange Coins.ph under Betur Inc., allegedly infiltrated the company’s systems and stole 12.2 million XRP worth 340 million PHP. Coins.ph detected the breach after noticing unusual login activities. The suspects were found to have extensive knowledge of the network infrastructure and security measures.
Justice Secretary Jesus Remulla emphasized the Department of Justice’s commitment to upholding the rule of law in cyberspace. In his statement, Remulla said, “It is the duty of the Department of Justice to ensure that the rule of law is always upheld, and this includes cyberspace.” He warned about the tactics cybercriminals develop to exploit technological advancements and stressed the importance of vigilance.
Status of the Suspects
Avdeev is facing 23 cybercrime charges with bail set at 120,000 PHP for each charge, while Yaschuck is facing three charges under the same bail conditions. The suspects allegedly attempted to launder the stolen funds through various cryptocurrency platforms to mask their origin and avoid detection.
This incident highlights the critical importance of cybersecurity and the necessity for advanced security protocols to protect assets, especially on platforms holding large amounts of cryptocurrency. It underscores the need for crypto platforms to implement more sophisticated security measures to safeguard their users’ assets.
Recently, the crypto exchange BtcTurk was also attacked, resulting in nearly $55 million worth of cryptocurrency being stolen. In the second quarter of 2024, losses from crypto-focused hacks and similar incidents have exceeded $629 million.
