Witness Reveals Bitcoin Fog’s Role in Bitfinex Hack
Ilya Lichtenstein, a well-known figure in the crypto industry involved in criminal activities, has testified as a witness for federal prosecutors in the trial of Bitcoin Fog. Lichtenstein shared details about one of the largest Bitcoin heists in history, which involved the looting of billions of dollars from the crypto exchange Bitfinex using Bitcoin Fog.
How Bitcoin Fog Was Used to Conceal the Origin of Stolen Funds
Lichtenstein appeared as a cooperating witness for the US government and disclosed how he gained access to Bitfinex’s systems and infiltrated accounts at other crypto exchanges like Coinbase and Kraken. During his testimony, he revealed his use of a service called Bitcoin Fog to launder some of the stolen money. He is now helping federal prosecutors in their case against Bitcoin Fog.
- Lichtenstein used Bitcoin Fog on multiple occasions to launder the stolen money.
- US prosecutors have accused Roman Sterlingov of operating Bitcoin Fog.
- Sterlingov’s attorney denies any evidence linking his client to the operation.
- Lichtenstein’s testimony implicated his wife, Heather Morgan, in helping hide the source of the stolen funds.
Couple Admits to Laundering Stolen Bitcoin Through Crypto Exchanges and Darknet Markets
Lichtenstein detailed his approach, which included saving customer passwords from Bitfinex to access accounts on other exchanges. He primarily laundered the funds by depositing them into crypto exchanges using accounts in the name of other individuals purchased on the darknet. The couple also used fake identities to set up online accounts and conducted transactions through crypto exchanges and darknet markets.
- Lichtenstein utilized various mixers to obfuscate the origins of the stolen money.
- He switched from Bitcoin Fog to other mixers like Helix for better suitability.
- The couple funneled some of the stolen money into nonfungible tokens, gold, and Walmart gift cards.
Hot Take: Massive Bitcoin Heist Exposed
A witness in the trial of Bitcoin Fog has revealed how the infamous mixing service was used to conceal the origin of stolen funds from the Bitfinex hack. Ilya Lichtenstein, a key figure involved in the criminal activities, disclosed his use of Bitcoin Fog to launder billions of dollars. This testimony sheds light on one of the largest Bitcoin heists in history and highlights the need for stricter security measures in the crypto industry. The trial will determine the fate of Bitcoin Fog and its alleged operator, Roman Sterlingov, as well as provide insights into the motives behind the Bitfinex hack.
Wyatt Newson emerges as a luminary seamlessly interweaving the roles of crypto analyst, dedicated researcher, and editorial virtuoso. Within the dynamic canvas of digital currencies, Wyatt’s insights resonate like vibrant brushstrokes, capturing the attention of curious minds across diverse landscapes. His ability to untangle intricate threads of crypto intricacies harmonizes effortlessly with his editorial mastery, transmuting complexity into a compelling narrative of comprehension.