The rise of cryptocurrency has also paved the way for an increasing number of scams, resulting in substantial losses for countless investors. As the market matures, so do the tactics employed by fraudsters, making it crucial for individuals to stay informed and vigilant.

Investigative Breakthroughs in Cryptocurrency Fraud

Prominent blockchain investigator ZachXBT recently revealed a significant scam linked to a suspect named Christian ‘DayTwo’ Nieves. This fraudulent scheme reportedly siphoned off more than $4 million from unsuspecting Coinbase users, primarily through tactics of impersonation.

The investigation unveiled stark insights into the methods employed by Nieves, who not only posed as a legitimate customer support agent but also utilized the stolen funds for extravagant purchases and extensive gambling activities.

The layer of deception was executed through a call center operation, wherein DayTwo meticulously guided potential victims into downloading a compromised Coinbase wallet. This manipulation led to unauthorized access to users’ private keys, allowing for unchecked fund transfers.

To authenticate these illicit transactions, ZachXBT traced a staggering $240,000 linked back to a victim aged over 65. The trail led directly to a wallet associated with DayTwo’s activities, showcasing the stark reality of how vulnerable certain populations in the cryptocurrency space can be.

5/ Daytwo exhibited a penchant for gambling during group calls on Discord.

Highlighted in the recording, DayTwo openly revealed his Roobet username ‘pawsonhips,’ thereby compromising another layer of his illicit operations.

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— ZachXBT (@zachxbt) June 23, 2025

The Dangers of Online Gambling Amongst Scammers

ZachXBT has pointed out that DayTwo’s risky gambling habits often took place while live-streaming on platforms like Discord. This reckless behavior led him to inadvertently expose information relevant to his criminal activities, including a deposit address in the online casino Roobet.

As ZachXBT stated:

I meticulously analyzed his casino deposit address, revealing a connection to over 30 suspected thefts. Although there may be overlaps with other criminals, most suspicious activities can be traced back to DayTwo.

With each gambling loss, DayTwo’s desperation grew, leading to reduced deposits into Roobet. Conversations among him and his acquaintances were marred with discussions about their fraudulent tactics, showcasing a level of arrogance rarely seen in such deceptive operations.

This kind of blatant disregard for anonymity, while flaunting illicit gains on social media, is often not witnessed. Considering DayTwo is an adult, the law enforcement path is clear. Unfortunately, victim recovery is likely to be minimal, as much of the stolen wealth has been spent on gambling.

Original image from Unsplash, infographic sourced from Tradingview.