SCOTTSDALE, AZ (AZFamily) — Scottsdale police say a Tempe man who posed as an Uber driver stole more than a quarter million dollars in cryptocurrency from unsuspecting victims who just wanted a ride.

According to authorities, Nuruhussein Hussein posed as a fake Uber driver on two separate occasions, on Mar. 31 and Oct. 11, at the W Scottsdale hotel near Scottsdale and Camelback roads.

Scottsdale Police Sgt. Allison Sempsis said the victims would be asked to unlock their phones so the driver could look up directions or make sure they were connected to the Uber app.

Instead, court documents allege that Hussein would transfer money from their crypto digital wallet to his own, which prosecutors say totaled a combined value of $302,000 as of this week.

Arresting documents say that in October, the victim gave Hussein the phone so he could try to “connect” the ride, but he began to drive down the block before handing back the phone, saying he wasn’t able to link the ride.

Later that morning, the victim noticed several emails indicating a crypto transfer had gone through, which said he had sent two Bitcoins.

Detectives from Scottsdale PD’s financial crimes unit were able to link IP addresses from Hussein’s digital wallet to his home.

The digital wallet showed he had converted the Bitcoin to a different currency: Monero/XMR, which police said is more difficult to trace.

Police were also able to link Hussein to a similar case that was reported in March.

In that case, a victim reported feeling threatened if he didn’t hand his phone over because there was a gun near the center console when Hussein allegedly said, “If you don’t chill out, something bad going to happen.”

Scottsdale police detectives and Secret Service Special Agents are still investigating.

Arizona’s Family has reported on several recent crypto scams, including that of a woman who lost $204,000 in crypto to the fraud scheme.

Last year, two men from Maricopa County were charged for reportedly ripping off hundreds in an elaborate crypto investment scheme.

What is crypto?

Cryptocurrency has been around for a while now, but seen come under the spotlight in recent years.

In basic terms, cryptocurrency is digital money. This kind of currency is designed to work through an online network without a central authority — meaning it’s typically not backed by any government or banking institution — and transactions get recorded with technology called a blockchain.

Bitcoin is the largest and oldest cryptocurrency, although other assets like Ethereum, Tether and Dogecoin have gained popularity over the years.

Some investors see cryptocurrency as a “digital alternative” to traditional money — but it can be very volatile, and reliant on larger market conditions.

The Associated Press contributed to this report.

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With Bitcoin topping $100,000 and a crypto-friendly administration coming into the White House, cryptocurrency has taken a major step into the spotlight.

But a real debate continues about its future. While some major financial institutions are embracing and adapting to the change, others remain wary of investment.

Unlike traditional currencies issued by governments, cryptocurrencies like Bitcoin and Ethereum are not controlled by any central authority, which makes them less susceptible to government interference or manipulation. Is that an argument for or against crypto? And what should average investors know about how this change could affect their savings and retirement accounts? As more people and businesses legitimize digital currencies, understanding the underlying technology and its implications becomes essential in navigating this rapidly evolving financial ecosystem.

Guests:
David Yaffe-Bellany, New York Times reporter covering the crypto industry

Lee Reiners – law professor at Duke University and crypto skeptic

Danny Nelson – reporter with CoinDesk and crypto optimist.

The volatility of cryptocurrency markets has been a major topic of discussion since the inception of digital assets like Bitcoin and Ethereum. Its impact extends beyond financial speculation and the promise of decentralized finance. Cryptocurrency’s creation is creating distinct ripples through the global economy, even reaching security and geopolitical affairs. Among the more intriguing dimensions of this impact is the interplay between cryptocurrency volatility and nuclear deterrence.

Too few Americans contemplate the role of digital currency volatility in acting as a barrier or an enabler to nuclear deterrence. The reality is that there are opportunities and risks that volatile cryptocurrency plays in the strategic calculus of nuclear states.

Cryptocurrency and Geopolitical Shifts

Cryptocurrencies are decentralized and borderless, challenging traditional financial systems and reshaping how states interact economically. Their volatility stems from market immaturity, speculative trading, regulatory uncertainties, and evolution of these ever-changing technologies. Essentially created to prevent intermediaries, like banks and financial institutions, cryptocurrencies lay the foundation for trustless transactions for illicit activities.

This volatile mix of person-to-person transactions and zero oversight introduces both unpredictability and opportunity, raising questions about their implications for nuclear deterrence, which now must deal with a domain that includes ungoverned access to financial streams that can be used by state and non-state actors to engage in elicit behavior that undermines deterrence stability.

Nuclear deterrence relies on a delicate balance of power, with states maintaining assured second-strike capabilities to dissuade adversaries from initiating conflict. This balance hinges on credibility and capability. Cryptocurrencies, with their volatile swings in value, could serve to undermine stability within a country or enable elicit actors to engage in a range of nonnuclear actions that undermine strategic stability.

The Risks of Cryptocurrency Volatility as a Barrier

Cryptocurrency volatility can act as a barrier to nuclear deterrence by creating financial instability and undermining a state’s ability to project economic power. Traditional nuclear powers depend on stable economies to maintain robust defense capabilities, fund deterrence strategies, and support diplomatic efforts. Sharp and unpredictable fluctuations in digital assets can undermine financial stability, weakening a state’s capacity to fund critical defense initiatives.

For the United States, crypto is not a major issue currently. But, for North Korea, who funds its nuclear program through elicit activities, crypto is important. Proliferators also use crypto to conduct activity. Instability in crypto makes illicit activity even more high stakes and unpredictable.

Instability creates advantages for state and non-state actors to exploit cryptocurrency markets for nefarious purposes, such as evading sanctions, financing proliferation, and bypassing traditional financial controls. The decentralized nature of cryptocurrencies complicates efforts to monitor, track, and regulate illicit activities, potentially undermining efforts to prevent the spread of nuclear weapons or restrict financing for state and non-state actors pursuing destabilizing weapons programs.

Cryptocurrency instability also presents a challenge to strategic stability through cyber threats. If critical financial systems or exchanges are disrupted, or if adversaries manipulate markets to harm a nation’s economy, it could create economic shocks severe enough to destabilize deterrence relationships, increase miscalculation risks, or fuel insecurity-driven arms build-ups.

The Darknet and Conflict Escalation

Darknet cryptocurrency markets empower bad actors by offering anonymity and decentralized financial tools, enabling a wide range of conflict-escalating activities. These markets facilitate the purchase of illegal arms, military-grade technology, and hacking tools, often used to destabilize regions and target critical infrastructure (command-and-control systems) through cyberattacks.

Terror organizations leverage cryptocurrencies for anonymous funding, allowing them to finance operations, recruit globally, and expand their influence. Sanctioned entities exploit these markets to bypass international restrictions and acquire resources that fuel aggressive actions.

The ability to transact anonymously with cryptocurrencies also shields organized crime, including narcotics and human trafficking, whose revenues often fund conflict zones and insurgent groups. Covert exchanges on the darknet can increase espionage, destabilize international relations, and provoke hostilities to serve a radically motivated agenda.

In parallel, extremist groups utilize these platforms to spread propaganda, incite violence, and radicalize populations, further destabilizing fragile regions. The combination of anonymity, decentralized systems, and hidden economies presents a formidable challenge for global security efforts aimed at conflict prevention and stability.

Cryptocurrency as an Enabler of Nuclear Deterrence

On the other hand, cryptocurrency volatility also opens new avenues for strengthening nuclear deterrence through financial resilience and innovation. The decentralized nature of digital assets can enable states to diversify their financial resources and reduce dependency on traditional systems that might be vulnerable to adversarial influence or geopolitical tensions. In times of economic crisis or sanctions, cryptocurrencies can provide states with alternative means to maintain fiscal stability, thus supporting their deterrent capabilities. Countering bad activities with good can be as challenging as the reliance on traditional financial stability for positive security assurance.

Furthermore, blockchain technology, which underpins cryptocurrencies, offers potential for transparency, accountability, and verification mechanisms in arms control agreements. By leveraging blockchain, states can create tamper-proof records for tracking nuclear materials, enhancing verification regimes, and building trust between adversaries. The volatility of digital assets may fuel innovation and drive investment into these applications, ultimately strengthening nuclear stability and deterrence structures.

Balancing the Risks and Opportunities

While the volatility of cryptocurrencies poses undeniable risks, it is essential to approach them with a nuanced perspective to find the right balance between risk and reward. Policymakers must strike a balance between leveraging the opportunities that digital assets present and mitigating their risks to global security. Collaborative efforts to regulate and stabilize cryptocurrency markets can reduce the likelihood of financial instability while harnessing the potential of decentralized systems.

In addition, enhanced cybersecurity measures must accompany any state or multilateral effort to integrate cryptocurrency into the financial systems that underpin deterrence capabilities. Protecting digital infrastructure against malicious actors will ensure that the advantages of decentralized assets are not overshadowed by their exploitation for destabilizing purposes.

A New Strategic Frontier

The volatility of cryptocurrency markets is both a challenge and a frontier for instability of nuclear deterrence. While it poses risks through financial instability, illicit use, and cyber threats, it also offers opportunities for financial resilience, innovation, and transparency. In today’s evolving digital environment, nations must adapt to this dual-edged sword, developing strategies that incorporate the volatility of digital assets into a comprehensive approach to deterrence.

Ultimately, whether cryptocurrencies become a barrier or enabler of nuclear deterrence depends on how nations, regions, and regulators in the broader international community respond to this evolving challenge. By advocating cooperation, innovation, and regulation, cryptocurrencies can strengthen global security architectures and contribute to a stable nuclear order—turning volatility into a force for strategic stability and peace.

Greg Sharpe is the Marketing and Communications Director at the National Institute for Deterrence Studies. The views expressed in this article are his own.

Greg Sharpe

Mr. Greg Sharpe is the director of Communications and Marketing for the National Institute for Deterrence Studies and the Managing Design Editor for the Global Security Review.

He has 25+ years in marketing and communications focusing in digital marketing and analysis.  Greg has over 35 years of military, federal civilian and defense contractor experience in the fields of database development, digital marketing & analytics, and organizational outreach and engagement.

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