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Legal Loopholes Exposed: $37M Teen Crypto Heist Shocks Industry

Crypto
Last updated: June 1, 2025 9:10 pm
Crypto
Published June 1, 2025
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Legal Loopholes Exposed: $37M Teen Crypto Heist Shocks Industry

Crypto Investigator Urges Tougher Penalties for SIM Swapping Fraud

Crypto sleuth ZachXBT is pushing for stricter punishments for SIM swapping and social engineering fraud. He highlighted a case involving a canadian teenager who allegedly stole $37 million in cryptocurrency.

ZachXBT’s stance came after an X user suggested “wallet draining should be the death penalty.” The crypto sleuth responded by pointing out flaws in current legal systems, especially for juvenile offenders.

The investigator specifically mentioned Cameron Redman, who allegedly orchestrated a massive SIM swap attack in 2020 at age 17. The hacker targeted Josh Jones, stealing around 60,000 Bitcoin Cash (BCH) and 1,547 Bitcoin (BTC), worth $37 million at the time.

Redman used complex money laundering techniques. The stolen BCH was moved through small transactions to exchanges, while most BTC went through mixing services like Chip Mixer and Crypto Mixer.

ZachXBT criticized lenient laws for minors in high-value cybercrimes. He noted that “laws in Canada and EU are super relaxed, so threat actors can get away wiht a lot.” The sleuth publishes full names “nonetheless of age” when investigating crypto crimes.

Hamilton Police in Ontario charged Redman in November 2021, following collaboration with the FBI and U.S. secret Service. Authorities recovered $5.4 million of cryptocurrency, but $31.5 million remains missing.

the case resurfaced when ZachXBT linked Redman to recent phishing attacks and X account takeovers targeting NFT projects. Given the scale of the crimes, the investigator believes there was “zero reason his name should’ve been protected or hidden.”

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