Bitfinex Hack: FBI nabs couple over $4.5 billion stolen crypto
The Federal Bureau of Investigation has arrested and charged Ilya Lichtenstein and Heather Morgan with conspiracy to launder cryptocurrency that was stolen during the 2016 hack of Bitfinex, a virtual currency exchange platform.
The Department of Justice said on Tuesday that Ilya Lichtenstein and his wife, Heather Morgan, were scheduled to make their initial appearances in a federal court in Manhattan.
“Today, federal law enforcement demonstrates once again that we can follow money through the blockchain, and that we will not allow cryptocurrency to be a safe haven for money laundering or a zone of lawlessness within our financial system,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division.
The couple were charged with conspiracy to commit money laundering, which has a maximum sentence of 20 years in prison, as well as conspiracy to defraud the United States, which carries a maximum sentence of five years in prison.
According to court documents, they allegedly conspired to launder the proceeds of 119,754 bitcoin that had been stolen from Bitfinex’s platform after a hacker breached Bitfinex’s systems and initiated more than 2,000 unauthorised transactions. Those unauthorised transactions sent the stolen bitcoin to a digital wallet under Mr Lichtenstein’s control.
The court documents added that over the last five years, 25,000 of those stolen bitcoins had been transferred out of Mr Lichtenstein’s wallet and ended with some of the stolen funds being deposited into financial accounts controlled by the couple.
The remainder of the stolen funds, comprising more than 94,000 bitcoin, remained in the wallet used to receive and store the illegal profits from the hack. Special agents obtained access to Mr Lichtenstein’s online account after the execution of court-authorised search warrants of online accounts.
The recovered bitcoin was valued at over $3.6 billion at the time of seizure. The Department of Justice said the transactions at the time were valued at $71 million in Bitcoin, but with the rise in the currency’s value, it is now valued at over $4.5 billion.
In a statement, Bitfinex said it would work with the Justice Department and follow appropriate legal processes to regain possession of the stolen bitcoin.
More from Peoples Gazette
Economy
Buhari regime will continue to borrow without subsidy removal: Femi Adesina
“You know how much could have been saved if the subsidy was removed and how it could have been diverted to other areas and spheres of national life.
Sport
I never had any agreement with NFF to coach Nigeria: Jose Peseiro
The NFF had on December 29, 2021, announced that Peseiro would take over management of the Nigerian Super Eagles after AFCON.
NationWide
House moves to restrict use of public funds for foreign medical trips
While leading the debate on the floor of the House, sponsor Sergius Ogun, said the Bill would positively impact the lives and wellbeing of the people.
Lagos
Civil Defence officers remanded for armed robbery
“The defendants…, while armed with guns and other offensive weapons, hijacked an Iveco container truck.”
States
Petroleum marketers demand unconditional release of abducted chairman
IPMAN said it “will not take this as a joke but as an attack on the entire body which will be highly resisted.”
Hot news Home top
Reps blame Nigerian movies for surge in ritual killings; call for national emergency
The Nigerian lower legislative chamber attributed the increase in ritual killings to home videos depicting the gruesome acts in their productions.
NationWide
Fuel in our stock can last Nigeria for 20 days: NMDPRA
The regulatory agency boss said work was ongoing with other stakeholders to address the issue of substandard petrol imported into the country.
