The Department of Justice Seized About $3.6 Billion worth of Bitcoins Stolen in of Hong Kong-based cryptocurrency exchange Bitfinex. At the time, the incident was the second largest theft of its kind, with one hacker stealing 119,756 Bitcoin units, then worth about $63.7 million. On Tuesday, the Department of Justice seized over 94,000 Bitcoins and arrested the duo for allegedly attempting to launder assets.
According to the agency, husband and wife Ilya Lichtenstein and Heather Morgan obtained the cryptocurrency after a hacker penetrated Bitfinex’s system and made more than 2,000 illegal transactions. The cryptocurrency was deposited into a digital wallet controlled by Lichtenstein. The two then allegedly spent the next five years moving over 25,000 Bitcoins using a “complicated” laundering process that eventually resulted in some of the funds ending up in their financial accounts. By court order, federal agents obtained online files from Lichtenstein that included the private keys of a digital wallet containing the stolen cryptocurrency.
Deputy Attorney General Lisa Monaco said: “Cryptocurrency is not a safe haven for criminals. “Thanks to the meticulous work of law enforcement, the department has once again shown how they can and will track money, whatever form it may take.”
The case marks the largest financial forfeiture in the Department of Justice’s 151-year history. Prior to today, its largest crypto seizure involved Silk Road’s Dark Web Market. In 2020, the agency recovered 69,000 Bitcoins, worth about $1 billion at the time. Lichtenstein and Morgan face 25 years in prison if convicted of money laundering and conspiracy charges brought by the Justice Department.
All products recommended by Engadget are handpicked by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
