A Miami man faces multiple felony charges after police say he stole nearly $2 million worth of Bitcoin from a former employer — a theft that went undetected for years while the cryptocurrency sat locked in a safe.
Nahum Castro Reynaldo, 40, has been arrested on charges including grand theft and money laundering. He was also charged for using a communication device in an unlawful manner, as well as offenses committed against computer users. NBC 6.
Case dates back to the month of December 2017 when victim purchased Bitcoin as a longer-term investment. He bought a hardware wallet to store the digital currency, and turned to Castro — a trusted employee since 2013 and an IT specialist — to handle the wallet’s setup and security, the report said.
Castro had secured for his employer more than $187,500 worth of Bitcoin by the time January 2018 ended. It was locked away in the home of the victim, and remained there for many years.
In July 2025, that changed. While in the middle of a move, the victim opened the safe and accessed the wallet — only to find it empty. Bitcoins were gone. The arrest report states that the total value of the stolen Bitcoins at the moment of discovery was $1.9 Million.
Investigators found that the theft occurred in 2020 – more than 5 years before the victim became aware of the missing items. Castro continued to work for the victim through 2024.
This phrase is a giveaway for wallets
Investigations were centered around the wallet’s seed phrase — a master recovery key that grants full access to a cryptocurrency wallet. The report stated that only Castro and the victim knew the phrase.
In building the case, bank records played a crucial role. NBC 6 reported that the investigators were able to link Castro to the theft because the deposits into Castro’s account matched the withdrawals made from his Bitcoin wallet.
Security experts have been warning about this risk for years. placing complete trust in a single person When setting up a digital wallet, you will need to enter the following information.
Bitcoin transactions can be recorded in a public Blockchain, but they are non-reversible. This makes it almost impossible to recover funds that have been stolen without the help of law enforcement.
Castro, who was arrested and booked in jail after his arrest, was scheduled to appear before a bond court on Wednesday. Castro hasn’t entered a formal pleading in this case.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: bitcoinmagazine.com
