A lawsuit has been filed against Ellis Pinsky and his associates for stealing millions of dollars from crypto accounts
To friends and family, Ellis Pinsky appeared to be just another teenage gamer. Court documents indicate that those close to him assumed his sudden wealth came from luck with Bitcoin.
They did not know Pinsky had quickly become central to a cryptocurrency scam worth many millions of dollars.
Pinsky was 15 years old when he allegedly began carrying out the scheme that prosecutors say allowed him to steal more than $100 million in cryptocurrency. The federal lawsuit identifies him as “the leader” of “an advanced cybercrime operation.”
An insider told the New York Post that Pinsky’s best friend believed his newfound wealth came from trading Bitcoin and stocks, while his parents thought he had simply had an extraordinary run of luck winning Bitcoin through competitive gaming.
Now 18, Pinsky is being sued by crypto industry figure Michael Terpin. According to the complaint, Terpin and several other unnamed victims lost $23,808,125 as a result of the alleged scheme. The filing also claims Pinsky stole tens of millions of dollars from other victims not included in this lawsuit.
“Despite their pleasant appearance, Pinsky and his crew are in fact malicious computer geniuses with sociopathic traits who heartlessly ruin the lives of their innocent victims and boast about their multi‑million dollar scams,” the lawsuit states.
Beyond legal and related expenses, Terpin seeks treble damages — three times the amount of actual losses.
Terpin said he nicknamed Pinsky “Baby Al Capone” because of his alleged “crypto gangster” activities.
The complaint alleges that Pinsky and his group of hackers gained access to victims’ computers and then to their crypto accounts, stealing and laundering funds. In some instances, the suit claims they went as far as stealing personal information to obtain account access.
Pinsky reportedly spent his ill-gotten gains on nights out in New York and expensive watches.
The alleged activity came to a halt after co‑conspirator Nicholas Truglia was arrested in an unrelated crypto theft case in 2018. While Terpin separately sued Truglia, that defendant identified Pinsky and several others as accomplices in the thefts.
Noam Biale, Pinsky’s attorney, stressed that his client was still a minor at the time of the alleged conduct.
“It is deeply regrettable that Mr. Terpin has chosen to bring a lawsuit filled with libel and unfounded accusations for no purpose other than spite,” Biale said.