FBI Arrested Kai West, Suspect of Attacking 40+ Businesses, After Undercover Agent Traced Bitcoin Instead of Commonly Used Monero.
The U.S. Federal Bureau of Investigation (FBI) arrested Kai West, a serial business hacker, after an undercover agent transferred $250 in Bitcoin to the target in a key move that helped trace and capture him. This is clear evidence of the ability to trace transactions on the blockchain, even with small payments.
According to the U.S. Department of Justice (DOJ) statement, Kai West – a 25-year-old British citizen, also known by the aliases "IntelBroker" and "Kyle Northern" – and his accomplices are accused of selling stolen data from over 40 victims, including a telecommunications company, an urban healthcare unit, and an internet service provider.
West primarily accepted payments in Monero (XMR) – a cryptocurrency focused on privacy – to maintain anonymity and operate in dark markets. However, on January 26, 2023, an undercover law enforcement agent proposed a $250 Bitcoin (BTC) payment to purchase data from a victim.
West accepted the offer and received the BTC payment – a turning point that helped investigators trace the suspect's true identity, according to the FBI complaint.
Blockchain Allows Tracing of Smallest Transactions
"The IntelBroker arrest shows the advanced progress of law enforcement in the crypto space," Ari Redbord, Global Head of Policy and Government Relations at blockchain analysis company TRM Labs, shared with The Block. "FBI used a $250 Bitcoin transaction to track down and arrest a hacker who had been operating silently in the shadows for a long time."
Redbord emphasized: "Unlike traditional financial investigations that only detect large amounts, blockchain allows tracing of even the smallest payments on the public ledger. This helped the agent trace the chain of links between digital wallets, email accounts, and user identities."
According to the accusation, West and his accomplices advertised stolen data for sale at least 41 times with the aim of raising a total of $2 million, and freely distributed sensitive data about 117 times from 2023 to 2025. The FBI estimates that the group's attacks caused total damages of around $25 million to victims.
Kai West was arrested in France in February and is currently awaiting extradition to the United States. According to the FBI statement, West faces charges of conspiracy to access computer systems, electronic fraud and fraud conspiracy, along with unauthorized access to protected computers to collect information.
This case once again confirms that although Monero is currently the 30th largest cryptocurrency in the market with a Capital of around $5.8 billion and traded around $312, using privacy-focused cryptocurrencies cannot completely hide illegal activities when combined with modern investigative methods.
