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Technology/Internet

Bitcoin Exchange Operator Pleads Guilty in U.S. Case Tied to JPMorgan Hack

January 9, 2017

[Screenshot:  by Motormille2  /  Wikimedia Commons] 

 

Anthony Murgio, 33, a Florida resident, man pleaded guilty on Monday to charges that he conspired to operate an illegal bitcoin exchange – Coin.mx - which prosecutors said was owned by an Israeli who oversaw a massive scheme to hack companies, including JPMorgan Chase.

 

Prosecutors said Murgio operated Coin.mx, which without a license exchanged millions of dollars into bitcoin, including for victims of ransomware, a computer virus that seeks payment, often in the virtual currency, to unlock data it restricts. Prosecutors said Coin.mx was operated from 2013 to 2015 through several fronts, including one called "Collectables Club," to trick financial institutions into believing it was a members-only group interested in collectables like stamps.

 

Coin.mx was owned by Israeli citizen Gery Shalon, according to prosecutors, who say he and Maryland-born Joshua Samuel Aaron orchestrated cyber attacks on companies. An attack on JPMorgan resulted in the information of more than 100 million people being stolen.

 

Murgio is one of 9 people to face charges following an investigation connected to a data breach that JPMorgan disclosed in 2014 involving records for more than 83 million accounts. Murgio, who was not accused of engaging in the hacking scheme, was tied not only to Shalon but also to Aaron.

 

Under a plea agreement, Murgio agreed not to appeal any prison sentence of about 12-1/2 years in prison or less.