Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Bitfinex hacker testifies in Bitcoin Fog trial as government witness

Bitfinex hacker testifies in Bitcoin Fog trial as government witness

Crypto SlateCrypto Slate2024/02/27 22:08
By:Mike Dalton

Ilya Lichtenstein has testified against the alleged operator of crypto mixer Bitcoin Fog, which was shutdown in 2021.

Convicted Bitfinex hacker Ilya Lichtenstein has become a key government witness in a jury trial involving the alleged operator of crypto mixer Bitcoin Fog Roman Sterlingov, Bloomberg News reported on Feb. 27.

US prosecutors arrested and charged Sterlingov in April 2021 over allegations that the mixer helped launder 1.2 million BTC — worth $335 million at the time — linked to illicit activities on the dark web.

He is currently facing a jury trial over criminal charges.

Prosecutors arrested Lichtenstein and his wife, Heather Morgan, in February 2022. He was convicted of the theft after entering a guilty plea in August 2023. The couple conspired to launder $4.5 billion in Bitcoin they had stolen from the crypto exchange Bitfinex starting in 2016.

Criminal turned witness

According to the report, Lichtenstein testified that he had used Bitcoin Fog roughly ten times to launder some of the stolen funds. However, he eventually stopped using it in favor of a more preferable mixer called Helix.

Authorities shut down both mixers in 2021; Helix’s creator also pleaded guilty that year.

Lichtenstein additionally testified that he did not use Bitcoin Fog and other coin mixers for most of his laundering activities. Instead, he often deposited money to crypto exchange accounts registered to identities he had purchased on the dark web.

The Bitfinex hacker told the jury that he had never communicated with Sterlingov directly and did not know him. His testimony also revealed the reasons behind his decision to hack Bitfinex. Lichtenstein said:

“At the time, my business was struggling, and I was feeling very burnt out from it.”

Sterlingov faces multiple charges

A DOJ statement indicates that Sterlingov faces several charges, including money laundering, operating an unlicensed money-transmitting business, and money transmission without a license in the District of Columbia.

Sterlingov has vehemently denied these charges and claims innocence. His lawyers have argued that no hard evidence — such as eyewitness testimony or server logs — links him to the crypto mixer.

As of Feb. 27, the trial is ongoing, and the jury has yet to issue a verdict.

 

Mentioned in this article
Bitcoin Bitfinex
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

New spot margin trading pair — HOLO/USDT!

Bitget Announcement2025/09/12 07:46

FUN drops by 32.34% within 24 hours as it faces a steep short-term downturn

- FUN plunged 32.34% in 24 hours to $0.008938, marking a 541.8% monthly loss amid prolonged bearish trends. - Technical breakdowns, elevated selling pressure, and forced liquidations highlight deteriorating market sentiment and risk-off behavior. - Analysts identify key support below $0.0080 as critical, with bearish momentum confirmed by RSI (<30) and MACD indicators. - A trend-following backtest strategy proposes short positions based on technical signals to capitalize on extended downward trajectories.

Bitget-RWA2025/09/12 06:14
FUN drops by 32.34% within 24 hours as it faces a steep short-term downturn

OPEN has dropped by 189.51% within 24 hours during a significant market pullback

- OPEN's price plummeted 189.51% in 24 hours to $0.8907, marking its largest intraday decline in history. - The token fell 3793.63% over 7 days, matching identical monthly and yearly declines, signaling severe bearish momentum. - Technical analysts cite broken support levels and lack of bullish catalysts as key drivers of the sustained sell-off. - Absence of stabilizing volume or reversal patterns leaves the market vulnerable to further downward pressure.

Bitget-RWA2025/09/12 06:14
OPEN has dropped by 189.51% within 24 hours during a significant market pullback

New spot margin trading pair — LINEA/USDT!

Bitget Announcement2025/09/11 10:04