- Indiana case shows Bitcoin-fueled crime is robust even as crypto goes mainstream.
- Prolific forger cooked up bogus identification cards for minors and adults alike.
Even as Wall Street goliaths pile into Bitcoin, small-time criminals still use the world’s largest cryptocurrency to get paid.
On Wednesday, James Watt, a 26-year-old Indiana resident, was sentenced to three years of probation by a US judge for forging an estimated 30,000 fake IDs, according to court papers.
Watt worked for an unnamed website that advertised itself as “Your #1 Trusted Source for Fake IDs.”
14 Bitcoin
Over four years, his employer, who wasn’t named in court documents, paid Watt 14 Bitcoin, or almost $1.4 million.
While prosecutors said many of Watt’s clients were probably underage college students who wanted to drink alcohol, the government also found fake IDs for older adults.
Watt was skilled. To advertise his abilities, the website showed customers an ID he had faked for Thor, the Marvel superhero played by actor Chris Hemsworth in Hollywood blockbusters, according to court documents.
When federal authorities searched Watt’s home, they found the mock Missouri ID for the Norse god, who apparently lives on “Big Hammer Way” in Jefferson City, the state capital.
“Watt nearly became a millionaire simply through the manufacturing and mailing of thousands of fake IDs, essentially running a one-man [Bureau of Motor Vehicles],” said John Childress, acting US Attorney for the Southern District of Indiana, in a statement.
Lawyers for James Watt didn’t immediately respond to a request for comment.
Public database
The Watt case is a reminder that Bitcoin, despite its increasing acceptance in the halls of traditional finance, is still a tool for criminals.
The cryptocurrency first gained widespread prominence through Silk Road, the dark web marketplace where users bought and sold drugs with Bitcoin, among other illicit exchanges.
Authorities quickly learned to track Bitcoin transactions, which occur on a pseudonymous public database anyone can access.
In 2013, the government arrested Ross Ulbricht, the operator of Silk Road, whom President Donald Trump pardoned in January.
As part of the Justice Department’s many criminal investigations and arrests, authorities have seized billions of dollars worth of Bitcoin.
That includes Watt’s $1.4 million, which the government seized under a November forfeiture order.
Ben Weiss is a Dubai-based reporter for DL News. Got a tip? Email him at bweiss@dlnews.com.