TechFlow News, May 28: A man in Florida, USA, was arrested on suspicion of stealing approximately $1.9 million worth of Bitcoin using the mnemonic phrase from his former employer’s hardware wallet. Authorities stated that the unauthorized transfers of the stolen funds occurred in 2020, while the suspect still had access to critical security information.
Investigations revealed that the compromised wallet was a Trezor hardware wallet. The victim discovered the assets had been drained only in 2025, during a move. Law enforcement officials noted that only the victim and the suspect knew the recovery mnemonic phrase; the suspect allegedly used it to remotely reconstruct the wallet and then transferred and concealed the funds via Bitstamp, multiple intermediary wallets, and bank accounts. He currently faces charges including grand theft, money laundering, unlawful use of communication devices, and computer system-related offenses.
