News

US seizes 94,636 bitcoins from 2016 Bitfinex hack – 2 arrested

The United States Department of Justice (DOJ) announced the seizure of 94,636 bitcoins directly related to the 2016 Bitfinex exchange hack. This is “DOJ’s largest crypto seizure to date.” In addition, two people were arrested in connection with the cryptocurrency hack and theft.

2 people involved in Bitfinex hack arrested

On Tuesday, the Department of Justice (DOJ) announced that the US government has seized a large amount of stolen cryptocurrency directly related to the 2016 Bitfinex exchange hack.

According to the announcement, this is the DOJ’s largest crypto seizure to date, valued at $3.6 billion at the time of the seizure (over $4 billion at current prices).

Additionally, Ilya Lichtenstein, 34, and his wife, Heather Morgan, 31, have been arrested on charges of conspiring to launder $4.5 billion in cryptocurrency stolen in the Bitfinex hack. Notably, court documents show that they allegedly conspired to launder 119,754 bitcoins stolen from the crypto exchange.

During the 2016 Bitfinex hack, more than 2,000 transactions moved stolen bitcoins to a crypto wallet controlled by Lichtenstein. The DOJ found that about 25,000 BTC had been stolen from his wallet over the past five years through a complex money laundering process, adding that some of the stolen funds were deposited in financial accounts controlled by Lichtenstein and Morgan.

The Justice Department further stated that the remainder of the stolen funds, including approximately 94,636 bitcoins, remained in the wallet.

“Following the execution of a court search warrant against online accounts controlled by Lichtenstein and Morgan, agents were granted access to the files in that online account.”

“These files contain the private keys needed to access the digital wallet that received the stolen funds from Bitfinex and allow agents to legally seize and recover more than 94,000 bitcoins stolen from Bitfinex.”

FBI Deputy Director Paul M. Abbate pointed out:

“This case is a reminder that the FBI has the tools to track digital assets wherever they move.”

“This arrest and the department’s biggest financial meltdown to date demonstrates that cryptocurrencies are not a safe haven for criminals,” commented Assistant Attorney General Lisa O. Monaco.

Lichtenstein and Morgan employed “a variety of sophisticated money laundering techniques,” the complaint said. These techniques include using fake identities to set up online accounts, using computer programs to automate transactions, depositing stolen funds into accounts on cryptocurrency exchanges and various dark web markets, and using an anonymous Augmented Virtual Reality (AEC) system to implement “chain hopping”, a method of seamlessly moving cryptocurrencies between different wallets to avoid tracking.

“Lichtenstein and Morgan were charged with conspiracy to launder money with a maximum sentence of 20 years in prison and conspiracy to commit fraud in the United States with a maximum sentence of 5 years in prison.”

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Solana memecoins crash while DTX Exchange hits 100,000 TPS on layer-1 blockchain

Discover how DTX Exchange's historic achievement of 100,000 transactions per second on a layer-1 blockchain…

22 minutes ago

Strategic Bitcoin Reserve Expected to Cut 35% of US National Debt by 2049

VanEck suggests the U.S. could reduce its national debt by 35% by 2050 through a…

28 minutes ago

The New Lead of Presidential Crypto Council Appointed by Trump Is Bo Hines

President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.

53 minutes ago

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

2 hours ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

3 hours ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

4 hours ago

This website uses cookies.