Man Who Laundered Billions in Bitcoins Says Bitcoin Fog Was a Help: Bloomberg

Ilya Lichtenstein, who pleaded guilty in the Bitfinex case last year, is now a U.S. witness who testified about his use of Bitcoin Fog and other mixers to hide loot.


Lichtenstein Testifies Against Bitcoin Fog

Ilya Lichtenstein, who pleaded guilty with his wife in the Bitfinex case, is now testifying against the Bitcoin Fog mixer that he used to hide laundered assets.

Lichtenstein, one of the crypto industry's renowned criminals, is assisting federal prosecutors in their case against Bitcoin Fog. He appeared in a Washington, D.C. trial of the accused operator of the mixing service.

According to Bloomberg News, Lichtenstein revealed that he used various mixers, including Bitcoin Fog, to conceal funds from the Bitfinex hack. However, he emphasized that Bitcoin Fog was not his primary method of money laundering and that he eventually switched to other services that better suited his purposes.

Seizure of Billions in Crypto

The U.S. Department of Justice's seizure of billions in cryptocurrency in the Bitfinex case was unprecedented. This significant move highlights the severity of the Bitfinex hack and the government's commitment to combating money laundering in the crypto industry.

The testimony provided by Lichtenstein against Bitcoin Fog further strengthens the government's case and sheds light on the intricate methods used by criminals to conceal illicitly obtained funds through mixing services.

The ongoing trial of Roman Sterlingov, the accused operator of Bitcoin Fog, will be closely watched to determine its impact on the regulation of mixing services and the fight against money laundering.

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