A new on-chain investigation has linked Christian “Daytwo” Nieves to a multi-million-dollar crypto scam involving phishing, gambling, and luxury purchases. According to blockchain analyst ZachXBT, Nieves and his accomplices defrauded victims of over $4 million by posing as Coinbase support agents, then spent a large portion of the funds at Roobet — a crypto casino unlicensed in the U.S. and other major markets.

Fake Coinbase Calls, Phishing Sites, and Stolen Crypto

The fraud operation revolved around a social engineering scheme. Victims were cold-called by individuals pretending to be Coinbase employees, instructed to “secure” their digital assets by accessing phishing websites that mimicked Coinbase’s interface. Once logged in, the scammers captured private keys and drained wallets.

One documented case involved a senior citizen defrauded of $240,000 by an individual using the alias “Paranoia.” ZachXBT’s investigation revealed the stolen funds were split among the group, with one portion deposited to Roobet and another converted into Monero (XMR), a privacy-focused cryptocurrency often favored by illicit actors due to its obfuscated transaction data.

Gambling, On-Chain Trails, and Monero Conversion

Despite using Monero to mask transfers, Nieves left behind a detailed on-chain trail. Under the Roobet username “pawsonhips,” he recorded betting activity tied to scam proceeds. Deposits shrank over time, which ZachXBT interprets as a sign of escalating losses. At some point, Nieves allegedly began stealing from his own co-conspirators to sustain his gambling habit.

Photos shared on social media further linked him to luxury items — including Rolex watches — purchased using stolen crypto. The investigation has identified ties between Nieves’ Roobet address and over 30 separate thefts, though ZachXBT suspects the true number of victims is higher.

While Monero’s privacy design makes tracing difficult, its growing association with cybercrime has led to increased regulatory attention and delistings from major exchanges. This pressure may be pushing criminals back toward traceable coins like Bitcoin — especially when operational sloppiness, as in Nieves’ case, renders even privacy coins ineffective.

Source: https://www.casino.org/news/coinbase-scammer-gambled-at-crypto-casinos-bought-rolexes/