Federal agents in Manhattan discovered $3.6 billion in stolen bitcoins on Tuesday and arrested a pair for their involvement.
An investigation by the New York City Police Department led to the arrest of Ilya Lichtenstein. Together with his wife, Heather Morgan. It happened on Tuesday morning for allegedly seeking to launder cryptocurrency stolen in Bitfinex 2016 hack. 3.6 billion dollars’ worth of cryptocurrency was seized because of the hack.
Bitcoin Money
According to Deputy Attorney General Lisa O. Monaco, the department’s largest financial seizure ever demonstrates that bitcoin is not a safe haven for criminals. According to the prosecution, it employed an intricate network of bitcoin transactions. It was to help disguise the names of the defendants. Moreover, law enforcement has proved it can and will chase money, no matter what form it takes.
If found guilty, Lichtenstein and Morgan face 25 years in prison. On charges of conspiracy to launder money and defraud the United States. On Tuesday at 3 p.m. EST, the two will appear in federal court in Manhattan.
Criminal charges claim Lichtenstein and Morgan used various money-laundering methods. Including the creation of online accounts under false names. Also, the use of computer software to expedite and automate transactions, the deposit of stolen assets into multiple cryptocurrency accounts. This is to obscure transaction histories and the use of U.S.-based business accounts.
The United States’ financial system is becoming increasingly dependent on cryptocurrency. Also, the virtual currency exchanges that trade it. That is according to US Attorney General for the District of Columbia. In contrast, the sophisticated money laundering strategies used to steal digital currency could erode public confidence in the currency.
Bitfinex Website
According to evidence presented in court, Bitfinex was used to launder 119,754 bitcoins over the course. It recorded 2,000 transactions over a five-year period. In addition, Lichtenstein’s digital wallet received it.
Another 25,000 bitcoins were removed from the wallet as a result of this incident. Accused bank accounts were the subject of investigation. Where they used a sophisticated money laundering scheme, according to the information.
When the illicit transfers occurred, Lichtenstein had bitcoin (BTC) in his wallet, according to the complaint. In order to recover the $3.6 billion worth of bitcoin stolen from Bitfinex, agents executed search warrants. The executions were on the couple’s internet accounts and gathered information. Additionally, are the passwords to their digital wallets.
Finally. with the help of the Justice Department and correct legal processes, Bitfinex intends on reclaiming its stolen bitcoin. A single Bitcoin was trading at better than $43,000 as of Tuesday afternoon.
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