U.S. DOJ Arrests 2 People and Seizes 94,636 Bitcoin From 2016 Bitfinex Hack
On Tuesday, the U.S. Department of Justice (DOJ) announced that it has has seized stolen cryptocurrency directly linked to hack of cryptocurrency exchange Bitfinex in 2016.
The DOJ states that this is the “largest cryptocurrency seizure to date, valued at more than $3.6 billion” at the time of the seizure. Nevertheless, with Bitcoin price’s surging, the value already exceeds $4 billion.
Along with the seizure, two people have been arrested, Ilya Lichtenstein, 34 years of age, and his wife, Heather Morgan, 31 with the allegations of “alleged conspiracy to launder $4.5 billion in stolen cryptocurrency” from the Bitfinex hack. According to court documents, the two “allegedly conspired to launder the proceeds of 119,754 bitcoin” that were stolen from the crypto exchange.
We’re pleased that DOJ has announced recovery of a significant portion of the bitcoin stolen during the 2016 hack. https://t.co/voGmFUkYoY
— Bitfinex (@bitfinex) February 8, 2022
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Since the 2016 Bitfinex hack, stolen coins got distributed in over 2,000 transactions to a wallet address controlled by the suspects. The DOJ noted that in the years since, roughly 25,000 stolen BTC were moved out of his crypto wallet “via a complicated money laundering process” and deposited into financial accounts.
Approximately 94,636 bitcoins BTC were kept in the wallet, over which the DOJ gained access by obtaining files that contained the private keys. The DOJ said:
“After the execution of court-authorized search warrants of online accounts controlled by Lichtenstein and Morgan, special agents obtained access to files within an online account controlled by Lichtenstein.”
Adding:
“Those files contained the private keys required to access the digital wallet that directly received the funds stolen from Bitfinex, and allowed special agents to lawfully seize and recover more than 94,000 bitcoin that had been stolen from Bitfinex.”
FBI Deputy Director Paul M. Abbate opined: “Today’s case is a reminder that the FBI has the tools to follow the digital trail, wherever it may lead.”
The DOJ said that the suspects can expect money laundering charges.
“Lichtenstein and Morgan are charged with conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and conspiracy to defraud the United States, which carries a maximum sentence of five years in prison.”
After, claiming their innocence in a New York courthouse on Tuesday, Lichtenstein and Morgan, were released on bond. Both were allowed home detention with a wearable GPS and a $5 million and $3 million bond respectively.
Last week, Twitter account ‘Whale Alert’ reported that a large portion of the Bitfinex BTC got transferred.
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Source: igaming
