Ilya Lichtenstein transformed from defendant to a government witness when he testified in court against the Bitcoin Fog mixing service, which he used to conceal the origin of funds following a hack on Bitfinex.
In court, he stated that Bitcoin Fog, popular on the darknet, was not as effective as other mixers he used for the same purpose.
Ilya Lichtenstein Assists Prosecutors in Case Against Bitcoin Fog
Ilya Lichtenstein, identified as a key player in cryptocurrency crime, is now aiding federal prosecutors in the investigation against Bitcoin Fog, a mixing service he once used to mask illegally obtained assets.
Lichtenstein, who admitted to laundering money through the $3.6 billion Bitfinex hack, testified in Washington, DC against the dark web-linked mixing service operator, as reported by Bloomberg News.
Various Mixers Used for Laundering Bitfinex Funds
Lichtenstein admitted to using various mixers, including Bitcoin Fog, to launder funds from Bitfinex but eventually moved away from it in favor of other services that better suited his needs. This move was motivated by seeking more efficient money laundering methods.
Historic Cryptocurrency Seizure Linked to Bitfinex
The U.S. Department of Justice achieved an unprecedented success in the Bitfinex case by seizing billions of dollars in cryptocurrencies.
Legal Proceedings Against Bitcoin Fog Operator
In the case of Bitcoin Fog, Roman Sterlingov, a citizen of Russia and Sweden, was arrested and charged by U.S. authorities with money laundering through his mixing service in 2021. He is now facing a legal trial.
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