The United States Department of Justice (DOJ) has recently charged two Russian men with criminal acts in connection to the infamous hack of the now-defunct Bitcoin exchange, Mt. Gox. In an official statement, the DOJ revealed that Alexey Bilyuchenko, aged 43, and Aleksandr Verner, aged 29, have been accused of conspiring to steal approximately 647,000Bitcoin from the exchange between 2011 and 2014. This amounted to the “vast majority of the Bitcoin belonging to Mt. Gox’s customers,” the department highlighted.
Mt. Gox was a Japanese Bitcoin exchange that was forced to cease operations in 2014 following a devastating hack that saw criminals making off with 850,000 Bitcoin, an amount valued at $22.6 billion today. As a result, countless investors lost their assets and continue to wait for restitution from the Rehabilitation Trustee, Nobuaki Kobayashi. However, there was some relief for the affected customers in 2021 when a rehabilitation proposal, which aimed to reimburse around 90% of the owed assets, was approved. Investors had to file claims by March to recover their misplaced funds.
Further allegations by the DOJ involve Bilyuchenko conspiring with another Russian, Alexander Vinnik, to bring into existence the notorious BTC-e cryptocurrency exchange. BTC-e was a blacklisted exchange that the FBI closed in 2017 due to its involvement in laundering funds for international criminals. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division said, “Armed with the ill-gotten gains from Mt. Gox, Bilyuchenko allegedly helped set up the BTC-e virtual currency exchange, which laundered funds for cybercriminals worldwide.”
It is worth noting that BTC-e operated in the United States between 2011 and 2017, handling a staggering $9 billion in Bitcoin transactions throughout its life. The exchange’s creators deliberately enabled criminals to trade Bitcoin anonymously and launder unlawful funds, as alleged by the DOJ in prior claims.
Both Bilyuchenko and Verner face serious charges; Bilyuchenko has been charged with money laundering conspiracy and operating an unlicensed money services business, while Verner has been charged with conspiracy to commit money laundering. As this case unfolds, it highlights the importance of securing digital assets and the potential risks faced by cryptocurrency users. On one hand, the takedown of criminal enterprises involved in stealing and laundering digital assets brings a sense of justice to the crypto community. On the other hand, it reminds investors of the very real potential for loss and theft in this growing domain, urging them to be vigilant and prioritize the safety and security of their investments.
Source: Decrypt
