The recent announcement from the United States Department of Justice (DOJ) is about the charges unsealed against two Russian nationals, Alexey Bilyuchenko and Aleksandr Verner related to the 2011 hack of Mt. Gox, and the operation of the illicit cryptocurrency exchange BTC-e. As per court documents, Bilyuchenko is also charged with conspiring with Alexander Vinnik to operate BTC-e from 2011 to 2017.
DOJ Busts Bitcoin Bandits In Major Crypto Hack:
Alexey Bilyuchenko and Aleksandr Verner stole a large amount of cryptocurrency from Mt. Gox. The indictment alleges that this led to the exchange’s ultimate insolvency. Bilyuchenko is accused of using the profits he gained to help set up the notorious BTC-e, which laundered funds for cybercriminals worldwide. Bilyuchenko, Verner, and their co-conspirators fraudulently transferred Bitcoin from Mt. Gox’s wallets to Bitcoin addresses controlled by themselves. From September 2011 through at least May 2014, they caused the theft of at least 647,000 BTC from Mt. Gox.
To launder the stolen BTC, the defendants used Bitcoin addresses associated with accounts they controlled at other online Bitcoin exchanges. They also negotiated a fraudulent contract to provide advertising services to a Bitcoin brokerage service based in the Southern District of New York. Under the guise of Advertising Contract, they made regular requests for wire transfers into various offshore bank accounts controlled by themselves and their co-conspirators. In exchange for the wire transfers, the New York Bitcoin Broker received “credit” on Exchange-1, through which the defendants laundered more than 300,000 of the stolen BTC.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and U.S. Attorney Damian Williams for the Southern District of New York emphasized that the charges unsealed demonstrate the Justice Department’s ability to tenaciously pursue these alleged criminals till they are brought to justice.
Featured image from iStock, chart from TradingView.com
