A man identified by his initials HS, residing in Bandung, Indonesia, has been apprehended for allegedly manipulating the system of Markets.com, a London-based cryptocurrency trading platform. His illicit actions resulted in substantial financial losses for the company, totaling an estimated Rp 6.67 billion.
During a press conference in Jakarta, Kombes Pol. Andri Sudarmadi, Deputy Director of Cyber Crime at Bareskrim Polri, revealed that HS was primarily a distributor of computer accessories and equipment. Sudarmadi noted, “HS became involved with cryptocurrency trading as early as 2017,” indicating his long-standing familiarity with the digital asset market.
Investigators uncovered that the suspect, HS, discovered a critical vulnerability or anomaly within Markets.com’s buy and sell feature’s nominal input system. This flaw allowed the platform’s system to erroneously credit USDT into the deposit column based on the manipulated figures entered by the perpetrator, effectively creating digital assets out of thin air.
For context, USDT (Tether) is a stablecoin designed to mirror the value of the United States dollar, launched by Tether. Originally built on the Bitcoin blockchain, USDT has since expanded its compatibility to operate on other major blockchains, including Ethereum, EOS, Tron, Algorand, and OMG. Its value is consistently pegged to the US dollar by Tether, ensuring stability in the volatile crypto market.
Leveraging this discovered deposit system vulnerability, HS proceeded to establish four fictitious accounts. These accounts were created under the names Hendra, Eko Saldi, Arif Prayoga, and Tosin, designed to obscure his true identity and expand the scale of his fraudulent activities.
Explaining how these fabricated identities were created, Sudarmadi stated, “The suspect obtained this data by searching for e-KTP [electronic ID card] information on the Opensea.io website.” This detail highlights a sophisticated approach to identity fraud, utilizing publicly accessible or compromised data to facilitate his scheme.
The elaborate fraud scheme came to light after the Cyber Crime Directorate of Bareskrim Polri received a formal complaint from Finalto International Ltd., the company that owns and operates the Markets.com platform, specializing in cryptocurrency trading and exchange services.
The complaint specifically detailed instances of a user manipulating the purchase of crypto assets on their platform, leading to significant discrepancies and financial irregularities.
As a direct consequence of these fraudulent actions, Finalto International Ltd. suffered a substantial loss, precisely amounting to Rp 6,673,440,000.00, as confirmed by Andri Sudarmadi.
Following the complaint, investigators meticulously traced the flow of illicit funds and the intricate web of fake accounts created by the perpetrator. This thorough investigation culminated in the arrest of HS on September 15.
Beyond the arrest, authorities successfully seized several crucial pieces of evidence. These included a laptop, a mobile phone, a cold wallet containing 266,801 USDT (valued at approximately Rp 4,455,578,370), and a 152-square-meter shophouse located in Bandung Regency, West Java, believed to have been purchased with the proceeds of his crime.
HS now faces multiple criminal charges for his actions. These include violations under Article 46 in conjunction with Article 30 paragraph (2) and/or Article 48 in conjunction with Article 32 of Law Number 19 of 2016 concerning Amendments to Law Number 11 of 2008 regarding Electronic Information and Transactions (the ITE Law). Additionally, he is charged under Article 362 and/or Article 363 of the Criminal Code (KUHP) concerning theft, Article 82 and Article 85 of Law Number 3 of 2011 pertaining to Fund Transfer Crimes, and Articles 3, 5, and 10 of Law Number 8 of 2010 concerning the Prevention and Eradication of Money Laundering Crimes.
Summary
A man identified as HS from Bandung, Indonesia, has been arrested for manipulating the system of Markets.com, a London-based cryptocurrency trading platform. His actions resulted in substantial financial losses for the company, totaling an estimated Rp 6.67 billion. HS exploited a vulnerability in the platform’s buy and sell nominal input system, which erroneously credited USDT into deposit accounts, effectively creating digital assets.
To facilitate the fraud, HS established four fictitious accounts using e-KTP data found on Opensea.io. The Cyber Crime Directorate initiated an investigation after receiving a complaint from Markets.com’s owner, Finalto International Ltd. HS was arrested on September 15, with authorities seizing assets including 266,801 USDT and a shophouse, and he now faces multiple charges for his crimes.
