Money launderer sentenced to 5 years after theft of 120,000 bitcoin from a global crypto exchange.
15/11/2024
Ilya Lichtenstein was sentenced to five years in prison today, Thursday, November 14, 2024, for his involvement in a money laundering conspiracy arising from the hack and theft of approximately 120,000 bitcoin from Bitfinex, a global cryptocurrency exchange.
According to court documents, Lichtenstein, 35, hacked into Bitfinex’s network in 2016 using advanced hacking tools and techniques.
Once inside the network, Lichtenstein fraudulently authorised more than 2,000 transactions, transferring 119,754 bitcoin from Bitfinex to a cryptocurrency wallet in Lichtenstein’s control.
Lichtenstein then took steps to cover his tracks by deleting from Bitfinex’s network access credentials and other log files that could have revealed his conduct to law enforcement.
Following the hack, Lichtenstein enlisted the help of his wife, Heather Morgan, in laundering the stolen funds.
At times with Morgan’s assistance, Lichtenstein employed numerous sophisticated laundering techniques.
- Using fictitious identities to set up online accounts,
- Utilising computer programs to automate transactions,
- Depositing the stolen funds into accounts at various darknet markets and cryptocurrency exchanges and then withdrawing the funds.
- Converting Bitcoin to other forms of cryptocurrency in a practice known as “chain hopping”;
- Depositing a portion of the criminal proceeds into cryptocurrency mixing services.
- Using U.S.-based business accounts to legitimise Lichtenstein’s and Morgan’s banking activity; and
- Exchanging a portion of the stolen funds into gold coins.
SOURCE
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