The brief update reiterates the alleged $1.9 million Bitcoin theft case and highlights the broader need for stronger internal controls and wallet security in cryptocurrency management.
A Miami man, Nahum Reynaldo Castro, 40, has been arrested on multiple felony charges after police alleged he stole Bitcoin that later grew in value to more than $1.9 million from a former employer. According to the arrest report cited in the source, the victim began buying Bitcoin in December 2017 as a long-term investment and relied on Castro, a trusted IT employee, to set up and secure a hardware wallet. By the end of January 2018, more than $217,000 in Bitcoin had been placed in the wallet, which was then locked in a home safe. The theft was not discovered until July 2025, when the victim accessed the wallet during a move and found it empty. Investigators said the Bitcoin was taken in 2020 and pointed to the wallet’s seed phrase, known only to the victim and Castro, along with bank records that aligned Castro’s deposits with wallet withdrawals. The case underscores a longstanding crypto security risk: anyone with a wallet recovery phrase can control the assets, and Bitcoin transfers recorded on a blockchain are generally irreversible.