December 9, 2022

Law enforcement officers identified Bitfinex hackers in 2016

Law enforcement officers identified Bitfinex hackers in 2016

The Department of Justice (DoJ) seized a record $3.6 billion in bitcoin that was stolen in a hack crypto exchange Bitfinex in 2016.

During the largest confiscation of cryptocurrencies inthe whole story, a married couple was arrested - Ilya Lichtenstein and Heather Morgan. At the time of the hack, the stolen 119,754 BTC were valued at $70 million. At current exchange rates, the value of the stolen funds has risen to $4.5 billion.

Law enforcement officers identified Bitfinex hackers in 2016

The court documents detail the entire money laundering process that was uncovered after the closure of the AlphaBay darknet market.

Law enforcement officers identified Bitfinex hackers in 2016

Of the 119,754 bitcoins, 95,000 BTC - about $3.6 billion - were not withdrawn and remained in the wallet of the couple. Agents were able to access it and confiscate this amount.

The duo used various methods to launder the asset:

  • transaction automation software
  • transfers to various accounts of exchanges and darknet markets
  • BTC conversion to anonymous currency
  • crediting to accounts of fictitious personalities using false documents.

The stolen coins were also passed through mixers and the Hydra darknet marketplace, exchanged for gold, NFTs and gift cards.

Subscribe to ForkNews on Telegram to stay updated on news from the world of cryptocurrencies