Cybercriminal Directed $2.6M Crypto Heist From Prison: Prosecutors

Plotting Behind Bars

A cybercriminal operating from inside a Scottish prison directed an organized crime gang in a series of home invasion attempts targeting millions of dollars in cryptocurrency, prosecutors said in court Sept. 23. Robert Barr faces a lengthy prison sentence after pleading guilty at the High Court in Edinburgh to involvement in serious organized crime between January and April 2024.

Prosecutors described Barr as the leader of a syndicate capable of orchestrating sophisticated cyber-theft rarely seen in mainstream criminal investigations. According to a report, Barr was serving sentences for fraud and illicit mobile phone possession at Edinburgh’s HMP Edinburgh, when he orchestrated a break-in at a home in January 2024. He later tried to arrange a second raid on the same property in April.

The target was an unnamed local cryptocurrency entrepreneur who co-founded a startup and had been investing in crypto since 2014. David Dickson, representing the prosecution, told the court that Barr believed the victim’s holdings were worth more than $2.6 million (£2 million), including $1.32 million in a self-created digital coin.

During the initial January break-in, intruders stole a physical cryptocurrency hardware wallet. However, the assets remained secure because the thieves lacked the PIN and recovery key phrase, Dickson said.

Undeterred by the failure to access the funds, Barr organized a second attempt in April, instructing associates on how to gain remote access to the victim’s computers using remote desktop software.

“When they’re in his house gonna need [to] get him on his PC fast [and] download AnyDesk rapid,” Barr wrote to an accomplice via messaging apps, according to court documents read by prosecutors. Barr offered to join the raid via Telegram to guide the accomplices through transferring the funds.

Foiled by Doorbell Security

The second attempt failed on April 17, 2024, when the homeowner spotted two men and told his wife not to open the door. When the wife spoke through a video doorbell app, the suspects noticed the camera, attempted to cover their faces, and fled the scene.

Authorities seized an illicit phone from Barr’s cell on June 25, 2024. Forensic analysis revealed extensive evidence of Barr organizing and offering technical support for crypto-theft schemes, prosecutors said.

An accomplice, Sean Favier, also pleaded guilty to attending the Midlothian home in an attempt to commit robbery and steal cryptocurrency assets. Judge Lord Cubie deferred sentencing for both Barr and Favier pending background reports. Both men remain remanded in custody.