On February 8, 2022, the Department of Justice
(“DOJ”) successfully seized over $3.6B in stolen
cryptocurrency linked to a 2016 hack of Bitfinex, a virtual
currency exchange platform. The Bitfinex hack was one of the
biggest digital currency compromises since cryptocurrency's
inception in 2009. Hackers were able to capitalize on a
vulnerability within Bitfinex's security system, which
allowed them to initiate more than 2,000 unauthorized transactions.
As a result, 119,756 bitcoin (approximately $72 million at the
time) were stolen and transferred into a single cryptocurrency
wallet.
The duo behind the crypto-laundering were Manhattan residents
Ilya Lichtenstein and his wife Heather Morgan. The two were
arrested and charged with conspiracy to commit money laundering and
defraud the United States. Special agents discovered the keys to
the digital wallet that were being used to house the stolen funds
after obtaining search warrants to obtain lawful access to an
online
