Would You like a feature Interview?
All Interviews are 100% FREE of Charge
U.S. Department of Justice announced It announced today that it has indicted two Russians on charges related to the 2011 hack of the now-defunct Mt Gox, one of the world’s largest cryptocurrency exchanges at the time. Alexey Bilyuchenko and Alexander Verner are indicted in the Southern District of New York (SDNY) for allegedly laundering approximately 647,000 bitcoins related to the robbery. In addition, Mr. Bilyuchenko faces another charge in the Northern District of California (NDCA) related to his operation of the infamous Russian cryptocurrency exchange BTC-e.
The two have been charged with money laundering conspiracy at SDNY. Meanwhile, the NDCA charges are for money laundering conspiracy and operating an unlicensed money services business. The SDNY indictment carries a maximum sentence of 20 years for each defendant, while the NDCA indictment carries a maximum sentence of 25 years for Bilyuchenko.
According to the Department of Justice, Bilyuchenko, Varner, and their co-conspirators accessed a server housing Mt. Gox’s cryptocurrency wallet around September 2011. Once inside the servers, the two men and their partners allegedly began transferring customers’ bitcoin to accounts controlled by them. . Additionally, they are accused of laundering stolen bitcoins into accounts on other cryptocurrency exchanges that are also controlled by the group.
The conspirators allegedly negotiated a fraudulent “advertising deal” with a Bitcoin brokerage service in New York. The relationship was linked to “Bilyuchenko, Verner, and their co-conspirators.” According to the Justice Department, the group transferred more than $6.6 million between March 2012 and April 2013.
“This announcement marks a significant milestone in two major cryptocurrency investigations,” said U.S. Assistant Attorney General Kenneth A. Polite Jr. , contributing to the exchange’s eventual bankruptcy. Armed with illicit profits from Mt Gox, Bilyuchenko allegedly helped found the infamous cryptocurrency exchange BTC-e, which laundered money for cybercriminals around the world. These indictments underscore the ministry’s unwavering commitment to bringing bad actors to justice in the cryptocurrency ecosystem and preventing abuse of the financial system. ”