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  • Man Who Laundered Billions in Bitcoins Says Bitcoin Fog Was a Help: Bloomberg
  • Crypto

Man Who Laundered Billions in Bitcoins Says Bitcoin Fog Was a Help: Bloomberg

cryptovert February 28, 2024 2 min read
  • Ilya
    Lichtenstein
    has
    gone
    from
    high-profile
    defendant
    to
    government
    witness,
    testifying
    against
    a
    mixing
    service
    that
    he
    used
    to
    hide
    laundered
    assets
    from
    the
    Bitfinex
    hack.

  • He
    told
    a
    jury
    that
    Bitcoin
    Fog
    –
    a
    darknet
    favorite
    –
    wasn’t
    as
    good
    as
    some
    of
    the
    other
    mixers
    he
    used.

Ilya
Lichtenstein,
one
of
the
crypto
industry’s
most
high-stakes
criminals,
is
now
helping
federal
prosecutors
in
their

case
against
Bitcoin
Fog
,
one
of
the
mixing
services
he
said
he’d
used
to
conceal
assets.

Lichtenstein
–
known
for

the
multi-billion
Bitfinex
hack

of
bitcoins
worth
$3.6
billion
when
he
pleaded
guilty
to
money
laundering
last
year
–
appeared
this
week
in
a
Washington,
D.C.,
trial
of
the
accused
operator
of
the
mixing
service
associated
with
darkweb
criminality,
according
to
a

report

from
Bloomberg
News.

Lichtenstein,
who
had
been
charged
and
pleaded
guilty

alongside
his
wife,
Heather
“Razzlekhan”
Morgan
,
told
the
jury
that
he
used
various
mixers
including
Bitcoin
Fog
to
“obfuscate”
the
funds
from
the
Bitfinex
hack,
but
it
wasn’t
his
major
method
of
laundering,
according
to
Bloomberg.
He
said
he
moved
on
from
that
particular
mixer
once
he
discovered
other
services
“suited
his
purposes
better.”

The
U.S.
Department
of
Justice’s
seizure
of
the
billions
in
crypto
in
the
Bitfinex
case
was
unprecedented.

In
the
Bitcoin
Fog
case,
U.S.
authorities
had
arrested
and
charged
Roman
Sterlingov,
a
dual
Russian-Swedish
national,
with
money
laundering
in
his
operation
of
the
mixing
service
in
2021.
He’s
now
on
trial
in
that
case.

Edited
by
Nikhilesh
De.

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