A sophisticated cryptocurrency theft scheme has come to light in Scottsdale, Arizona, where a man allegedly stole $300,000 in digital assets by posing as an Uber driver outside a luxury hotel.
Police arrested Nuruhussein Hussein on December 11, 2023, following an investigation conducted jointly by the Scottsdale Police Department and U.S. Secret Service. Hussein faces multiple charges including theft, fraud, and money laundering for incidents that occurred in March and October 2023.
The suspect targeted victims waiting outside the W Hotel in Scottsdale by pretending to be their Uber driver. In a calculated move, Hussein approached victims using their real names, though investigators are still determining how he obtained this personal information.
The scheme worked through a simple yet effective deception. Hussein would ask to borrow his passengers' phones, either claiming his device wasn't working or offering to help troubleshoot apparent Uber app issues. Once he gained access to the victims' phones, he allegedly transferred cryptocurrency from their Coinbase accounts to other wallets, including cold storage options that are difficult to trace.
When one victim grew suspicious and demanded their phone back, court documents reveal Hussein allegedly made threats, telling them to "chill or something bad would happen."
Given the severity of the charges, the court has set strict conditions for Hussein's release. His bail is set at $200,000 cash, with mandatory electronic monitoring if posted. The judge also imposed restrictions on internet usage and international travel, particularly noting Hussein's frequent trips to Ethiopia as a flight risk concern.
This case highlights an emerging criminal trend of in-person cryptocurrency theft. Data shows 19 documented cases of physical crypto robbery worldwide in the past year, up from 17 cases in 2023. This shift represents a new challenge for law enforcement, as criminals move beyond purely digital methods to target cryptocurrency holders in person.
The case will proceed with Hussein's next court appearance scheduled for December 18, as authorities continue their efforts to combat this evolving form of financial crime.