The owner of a Queens auto repair shop lost his $300,000 retirement savings after a California man stole his bitcoins – and used the money to buy a diamond pendant, a Rolex and a Mercedes-Benz, authorities said.
The 61-year-old victim had 5.75 bitcoins worth $92,000 in a digital blockchain “wallet” when it was allegedly stolen by Aaron Peterson Jr., 20, in November 2022, the Queens District Attorney’s Office said.
The digital currency is now worth more than three times as much, prosecutors said.
Peterson – who was still a teenager at the time – was the mastermind behind the hacking attack, which also involved his parents, Aaron Peterson Sr., 39, and Autumn Clark, 37, and four other people.
According to Queens District Attorney Melinda Katz, the group was charged Friday with grand theft, money laundering, identity theft and other crimes.
The victim, a resident of Jamaica, Queens, purchased the cryptocurrency in 2017 and watched its value rise over time, sources said.
He never made any transactions and was probably counting on the bitcoins for his retirement savings when he noticed the unauthorized activity.
He reported the Bitcoin theft to the office of Assemblyman Clyde Vanel, who alerted the Queens District Attorney, who in turn launched an investigation.
The funds were allegedly laundered over an eight-month period through a series of small transactions sent to individual Bitcoin wallets, a technique known as “peel chain,” the prosecutor said.
The participants, including Dontay Brown, 39, and Ronald Moland Jr., 22, as well as two unidentified suspects, deposited the cryptocurrency into Cash App accounts and then withdrew the funds, officials said.
They put the remaining amount into a “pool account” belonging to the younger Peterson, who used it to buy the luxury goods, according to prosecutors.
Incriminating videos and photos obtained by The Post show Peterson Jr. counting a pile of cash, showing off jewelry he allegedly bought with stolen money, and even transferring the stolen cryptocurrency to his cellphone.
“The individuals allegedly responsible for this operation took careful measures to conceal their criminal activities,” Katz said.
The five known suspects were arrested in California on July 24, and the other two are currently being sought.
Both Peterson and Clark face up to 15 years in prison if convicted. They are due back in court in October.
“We want to help Queens residents invest, do business and transfer value in a safe manner,” Vanel said.
