Author by Victor Swaezy
Elliot Gunton, a 21-year-old hacker from Old Catton, has been sentenced to 3.5 years in prison for his role in a sophisticated phishing scam that compromised over 500 Coinbase accounts, resulting in the theft of more than $900,000 in cryptocurrency.
The offense, which took place between 2018 and 2019 when Gunton was just 17 and 18 years old, involved redirecting users to a fake website to capture their login details. Gunton, who has a history of hacking, was found guilty of conspiracy to commit fraud and money laundering outside the UK. He was arrested after using advanced techniques, including diverting phone calls to steal users’ private account details.
Gunton’s hacking activities aren’t a first offense. In 2019, he was sentenced to 20 months in prison for stealing customer data from TalkTalk, which he later sold for hundreds of thousands of dollars in cryptocurrency. He avoided jail time for that crime after completing a rehabilitation order, though he was ordered to refund over $524,000 to the victims.
The phishing attack was described by Judge Alice Robinson as “highly sophisticated,” noting that it required significant planning and technical expertise. Gunton’s actions raised concerns over the security measures at major crypto exchanges, such as Coinbase, and how user funds are protected.
While Gunton had previously attempted to distance himself from his criminal activities by starting a furniture business, his continued involvement in hacking has landed him a more severe sentence this time around.
The case highlights the ongoing risks within the cryptocurrency space and the importance of robust security protocols for crypto exchanges. Meanwhile, the UK Financial Conduct Authority (FCA) fined CB Payments Limited, a unit of Coinbase, $4.5 million for failing to adequately vet high-risk customers, further bringing attention to the regulatory issues facing the industry.
