Bitcoin News Today: UK Court: No Profiting from Cybercrime, Hacker Ordered to Repay $5.4M Bitcoin

A UK court has ordered Joseph James O'Connor, a British hacker convicted for a 2020 Twitter/X account hijacking scam, to repay £4.1 million ($5.4 million) in Bitcoin stolen through the cybercrime scheme. The civil recovery order, issued by the Crown Prosecution Service, mandates the liquidation of 42 Bitcoin and other crypto assets linked to O'Connor's fraudulent activities. The ruling follows a property freezing order secured during extradition proceedings and underscores the UK's commitment to preventing criminals from profiting from their actions.

O'Connor, 26, orchestrated the scam alongside co-conspirators by infiltrating Twitter's internal systems and taking control of high-profile accounts, including those of former U.S. President Barack Obama, then-presidential candidate Joe Biden, Tesla CEO Elon Musk, and Amazon founder Jeff Bezos. The hackers used social engineering tactics to trick employees into revealing login credentials, granting them access to administrative tools. Between July 15-16, 2020, they posted fraudulent tweets from compromised accounts, urging followers to send Bitcoin to digital wallets in exchange for doubled returns. Over 426 transactions were made, with victims transferring 12.86 BTC-worth $110,000 at the time-now valued at $1.2 million according to reports.

The attack, which affected 130 accounts, prompted X (then Twitter) to temporarily freeze verified profiles and investigate the breach. O'Connor was arrested in Spain in 2021 and extradited to the U.S., where he pleaded guilty to charges including computer intrusion, wire fraud, and extortion in 2023. He received a five-year prison sentence, which he is expected to complete by 2025. Despite his U.S. conviction, the CPS emphasized that the civil recovery order ensures he cannot retain ill-gotten gains, even if not convicted in the UK.

The scam's ripple effects extended beyond the immediate victims. Prosecutors noted that O'Connor likely acquired additional crypto through other hacks, including collaborations with online acquaintances during gameplay of Call of Duty. Adrian Foster, head of the CPS Proceeds of Crime Division, highlighted the case as a model for leveraging civil powers to dismantle cybercrime profits.

O'Connor's actions also exposed vulnerabilities in corporate account security. The breach prompted X to enhance its internal protocols and employee training to prevent future incidents.