The FBI just seized $3.6 billion in Bitcoin. This record seizure was made as part of an investigation into the Bitfinex hack in 2016. Two individuals accused of money laundering were arrested in the process.
The FBI (Federal Bureau of Investigation), the American federal police, has just seized 3.6 billion dollars in Bitcoin. According to a statement from the United States Department of Justice, 94,000 bitcoins were recovered during the operation. “This is the ministry’s biggest financial grab of all time”explains Deputy Attorney General Lisa O. Monaco.
According to the authorities, these bitcoins were stolen during the hack of the Bitfinex cryptocurrency exchange in 2016. This is one of the biggest hacks in the digital currency industry. The case had shaken investor confidence in crypto-asset exchange services. During the hack, the stolen bitcoins were only worth $71 million. Since the attack, the price of Bitcoin has soared above $40,000, causing the value of the loot to skyrocket.
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FBI arrests 2 hackers accused of laundering stolen bitcoins
In the aftermath, the federal police arrested two people in New York, Ilya Lichtenstein and Heather Morgan. These two individuals are said to have participated in the Bitfinex hack and have been trying for several weeks to launder their loot. “In a futile effort to maintain digital anonymity, the defendants laundered stolen funds through a maze of cryptocurrency transactions. Thanks to the meticulous work of law enforcement, the department has once again shown how it can and will track money, whatever its form.” says the Deputy Attorney General in charge of the case.
To cover their tracks, the hackers would have bought in particular non-fungible tokens (NFT), gold or even Walmart purchase cards. The authorities refer “a methodical and calculated stratagem”. In vain. Currently, most of the exchange platforms claim the identity of the investors to counter the criminals.
“Federal law enforcement is once again demonstrating that we can track money on the blockchain, and we won’t let cryptocurrencies become a money laundering haven,” says Assistant Attorney General Kenneth A. Polite Jr. Additionally, transactions carried out on the blockchain are closely monitored by the competent authorities. Contrary to popular belief, it is easy to track transactions made in Bitcoin. The motto is not anonymous, it is pseudonymous. Firms, such as Chainalysis, are specialized in the study of the blockchain and its payments.
Justice explains having obtained access to a file containing the private keys which provide access to the digital wallet of hackers. Using these keys, the FBI agents were able to obtain the stolen digital currencies. This seizure is in addition to the immense Bitcoin treasure already in the hands of the American authorities.
