In Brief:
- U.S authority arrested a Manhattan Couple that allegedly involved in Bitfinex hack in 2016.
- Justice Department charged money laundering act for $4.5 Billion worth Bitcoins.
- The illegal proceeds were spent on gold, Non-fungible tokens, and Walmart Gift cards.
On Tuesday morning, the U.S authority arrested a Manhattan couple involved in the largest crypto hack of Bitfinex in 2016 and seized $3.6 billion worth of crypto.
The Newyork-based couple Ilya “Dutch” Lichtenstein and his wife, Heather Morgan, hacked Bitfinex, the spotlight platform for many crypto traders at that time due to the infancy period of crypto exchange.
The justice department called this arrest the biggest financial seizure. Deputy Attorney General Lisa Monaco added that this arrest sent a message to hackers that cryptocurrency is “not a safe haven for criminals.”
The prosecutor linked to this case said that the expenditure list of this illegal fund includes buying Gold, non-fungible tokens (NFTs), and a $500 Walmart gift card.
Recently, Bitfinex’s stolen funds were transferred $3.5 billion worth of bitcoins to a new crypto wallet address to threaten Bitcoin investors.
Both delinquents hold public profiles and Heather is popular among her followers as a rapper “Razzelkhan’. She disclosed on her website that this pseudonym is taken from the cruel monarch Genghis Khan “but with more pizzazz.”
The case was submitted in a federal court in Washington D.C under the act of money laundering and cyber fraud with the United States.
The first trial proceeded from a federal court in Manhattan, where the U.S. Magistrate Judge Debra Freeman issued a bond to Lichtenstein and Heather of $5 million and $3 million respectively. The court also dragged their parents and ordered them to put their homes as security.
According to the Justice Department, the couple was behind the largest crypto hack in history that was launched on Bitfinex. They had laundered 119,754 Bitcoins, worth $71 million at that time, and made over 2,000 illegal transactions. After the exponential hike in Bitcoin price, the current value of these stolen Bitcoins revolves around $4.5 billion.
The investigators got key hints in 2017 when the money-laundering scandal of the underground digital market, AlphaBay came out. U.S officials revealed that some transactions were made through this platform.
Internal transaction data of AlphaBay implied the company’s connection with Lichtenstein’s cryptocurrency account.
Bitfinex said on the arrest that the company is working with the Department of Justice to “establish our rights to a return of the stolen bitcoin.”
Furthermore, the couple also tried to scatter cryptos on the different crypto exchange networks as well as invested in Heather’s startup.
About Heather
Apart from the horrible cyber hacking, Heather holds professional titles such as rapper, painter, fashion designer, and corporate writer to keep his illicit work from the outworld. However, her raps have been highly criticized by the social media army.
Surprisingly, crypto exchange platform BitGo contacted Heather to get advice to prevent visits of cybercriminals on the platforms.
Both are now at their home under electronic monitoring and imposed a ban on their flight travels to avoid their escape from the country.
Also Read: Hackers Shifted $3.5 Billion Worth of Funds from Bitfinex Stolen Fund
