Bitfinex Case Defendant Credits Bitcoin Fog in Laundering Scheme: Bloomberg
The revelation from hacker Ilya Lichtenstein sheds light on one of the largest Bitcoin heists in history, involving the looting of billions of dollars from the crypto exchange Bitfinex using Bitcoin Fog.
Ilya Lichtenstein, a prominent figure in the crypto industry known for his involvement in high-stakes criminal activities, has taken the stand as a witness for federal prosecutors in the trial of Bitcoin Fog, a mixing service associated with concealing illicit assets.
According to Bloomberg, Lichtenstein appeared as a cooperating witness for the US government. He disclosed to a jury how he gained access to Bitfinex’s systems over several months and infiltrated individual accounts at other crypto exchanges like Coinbase and Kraken.
Last year, Lichtenstein and his wife, a social media rapper known as Heather Morgan, pleaded guilty to a money-laundering conspiracy linked to the hack. During his testimony, Lichtenstein revealed his use of a service called Bitcoin Fog on multiple occasions to launder some of the stolen money.
Lichtenstein is now helping federal prosecutors in their case against Bitcoin Fog , one of the mixing services he said he’d used to conceal assets.
US prosecutors have accused Roman Sterlingov of operating Bitcoin Fog, alleging it received substantial amounts of money from darknet markets notorious for illegal drug trafficking.
Sterlingov’s attorney, Tor Ekeland, countered these claims, stating that there’s insufficient evidence linking his client to the operation of the mixer.
Roman Sterlingov, a dual Russian-Swedish national, was arrested and charged with money laundering for operating the mixing service in 2021. He is currently on trial for his alleged involvement in the operation of Bitcoin
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