Couple Steals 119,754 Bitcoins.
Lichtenstein, hacked the Bitfinex network in 2016, using sophisticated hacking tools and techniques. Once inside the network, Lichtenstein fraudulently authorized more than 2,000 transactions that transferred 119,754 bitcoins from Bitfinex to cryptocurrency wallets under Lichtenstein’s control. Lichtenstein then took steps to cover his tracks by deleting Bitfinex’s network access credentials and other log files that could reveal his actions to law enforcement. After the hack, Lichtenstein enlisted the help of his wife, Heather Morgan, to launder the stolen money.
Lichtenstein, sometimes with Morgan’s assistance, used a number of sophisticated money laundering techniques, including using fictitious identities to create online accounts; using computer programs to automate transactions; depositing stolen funds into accounts on various darknet markets and cryptocurrency exchanges, then withdrawing the funds; converting bitcoins to other forms of cryptocurrency in a practice known as “chain hopping”; depositing some of the proceeds of crime into a cryptocurrency mixing service; using U.S.-based business accounts to legitimize Lichtenstein and Morgan’s banking activities; and converting some of the stolen funds into gold coins.