A crypto wallet of $700,000 allegedly swindled in the presence of its owner in June is currently valued at around $2.6 million, a court was told on Thursday.
Four months since that lunchtime meeting when the alleged crypto fraud took place, Luke Milton, a 25-year old company director, was back in court as the prosecution neared the end of its evidence stage.
Milton is pleading not guilty to misappropriation and fraud, cryptocurrency theft, money laundering and various breaches of the Virtual Financial Assets Act.
He had met 27-year old Dillon Attard at a Sliema restaurant where the alleged swindle took place when the victim was meant to help Milton make a €5,000 blockchain investment on the phone.
After handing his phone to Milton, he stared in disbelief as the $700,000 balance in his crypto wallet was suddenly reduced to zero.
As proceedings against the suspect fraudster continued, the court heard a ‘special agent’ testify via video conference from the US about attempts to unlock the accused’s phone.
Milton has stood firm by his right not to disclose the phone’s password to investigators.
Whilst not divulging any details, the expert said that he was still hoping for a successful outcome but could supply no indication as to the expected time-frame.
Another IT expert explained in court that a distinction had to be made between the phone that was currently under court custody and the trust wallet that was stored on iCloud.
Asked by magistrate Donatella Frendo Dimech whether there could be possible tampering, Keith Cutajar explained that the system guaranteed “immutability” adding that track record of the fund transfers was “cast in stone.”
Moreover, the alleged fraudulent transactions were also verified through CCTV footage from the restaurant which clearly showed the suspect and his alleged victim seated at table while Milton scanned a QR code “mobile to mobile.”
That was a typical trait of money transfer, the expert said.
The situation was already very clear due to available evidence but finding the image of that QR code on the accused’s phone would be the “missing piece of the jigsaw puzzle….the cherry on the cake,” the witness explained.
An officer from the Blockchain Analysis Unit presented information about the trust wallet that was created in April by means of an iPhone 12.
An argument ensued over whether the value of the wallet, currently standing at $2.6 million was relevant to the case, with the AG lawyers and parte civile lawyer Franco Debono arguing in favour while defence lawyer Stefano Filletti said it was not.
Although in terms of criminal law it was the value at the time of the alleged offence that was to be considered, yet the information was deemed relevant and allowed.
During fresh submissions on bail, prosecuting lawyer Karl Muscat voiced concern about the possibility that the accused could access those funds if he were to be granted bail, stressing that the wallet currently stood at around $2.6 million.
But defence lawyer Stefano Filletti countered that for the purposes of the charges, it was the value at the time of the alleged incident that mattered.
Moreover, the court expert had testified that the transaction records were preserved.
The court later granted bail against a €40,000 deposit and a personal guarantee of €60,000, among other conditions.
The case continues.
Inspector Anthony Scerri prosecuted, assisted by AG lawyers Karl Muscat and Francesco Refalo.
Lawyers Stefano Filletti, Charles Mercieca and Matthew Xuereb were defence counsel.
Lawyer Franco Debono and Marion Camilleri appeared parte civile.