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UK Crime Unit, GMP, Recovers $22,250,000 From StableMagnet RugPull

After StableMagnet founders stole user funds, community members mobilized to track them down. Two individuals have now been arrested on fraud and money laundering offenses.

Partial Justice

Greater Manchester Police have detained a 23-year-old male and a 25-year-old female believed to be the perpetrators behind the StableMagnet rugpull. Specialist officers seized $22.25 million in Ethereum after receiving intelligence, which led them to discover USB sticks containing huge amounts of Ethereum. 

The arrest culminated the community-led manhunt led by ‘ogle’ - one of the many victims of StableMagnet’s dishonesty. Ogle has become a hero to the entire StableMagnet community and the wider crypto community. 

“This should be a lesson to the scammers out there! We will catch you! Great job @cryptogle. Thank you so very much!!” said one member, capturing the broader sentiment of the community.

The Manchester Police confirmed the news on August 11 and are looking for more information about the scam. The money seized by police amounts to ~90% of all stolen funds, which will now be returned to users. 

StableMagnet Founders left clues to their location, which community members pounced on. Source

Statement from Ogle

Following the successful conclusion of the investigation, Ogle made a statement to the StableMagnet Telegram group that we are reprinting here in full.

“Due to numerous requests (not my idea!) - If anyone would like to donate to the team behind me who helped to work on securing these funds and getting the money back to the victims - it is NOT mandatory, and please don't even feel obligated - but if you do want to, you're welcome to send a donation on any chain to: 0x389C0a9Fb43f60e7fCE549Ab5f66433e84dccF02

“It was/is our pleasure to track these guys down and try to get as much back to victims as possible. Scammers and thieves suck, and if they never see punishment, we will just see more of it. Thank you guys all for being patient and for those who sent me messages that were helping with info over time. Also, those who kept things calm in here when folks would be upset. Really appreciate everyone's contributions here.

“Behind me there are several people who put lots of time and money in to helping to get these funds back, and while we all work for free and have absolutely no profit incentive here, we have gotten many messages (before money was recovered) from people saying they'd gladly donate in the end if it was successful. I want to reiterate that that is not something we expect or that you have any need to do - your money is back, or will be soon, and it is yours - but we will graciously receive any donation you send, and use it for tracking down further scammers who might harm the ecosystem.

“There are still 3 people outstanding, running, as far as I know. As usual please check my twitter (twitter.com/cryptogle) or these Telegram and WeChat rooms for updates. If I get any I'll send out asap (but as earlier mentioned, that process is out of my hands, so I do not expect to get too many updates in the future about it).”

Scammers Beware

The successful conclusion to the StableMagnet rugpull has put scammers on notice. It is not only law enforcement who are pursuing online vigilantes. The crypto community is fighting back and proving successful. 

"This latest case shows the huge sums we're dealing with, and the reach these organized outfits can now achieve - a whole world is potentially vulnerable to this kind of exploitation, as shown in this case. We urge anyone involved these platforms to use extreme caution, and know that there are still significant vulnerabilities and risks that could put their savings at risk,” said Detective Chief Inspector Joe Harrop of Greater Manchester Police's Economic Crime Unit in the official press release.

Those affected by the loss should join the StableMagnet Telegram group to recoup their losses or contact Manchester Police. As always, scams are a reminder to remain diligent in all protocols and platforms used. 


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