AML Watcher’s Post

⚖️ Justice served in one of the largest crypto heists! Ilya Lichtenstein, the Bitfinex hacker behind the 2016 theft of 120,000 BTC (valued ~$10.7B today), has been sentenced to 5 years in prison. 🔑 Key details: ・💻 The funds were laundered via fake IDs, dark web transactions, crypto mixers, & gold exchanges. ・🤝 His wife, Heather Morgan, known as rapper “Razzlekhan,” pleaded guilty to conspiracy charges. ・🚨 The pair agreed to forfeit all stolen assets to the US government. This case underscores the risks and challenges of cryptocurrency theft and laundering. Stay vigilant in safeguarding digital assets! #CyberCrime #CryptoNews #Bitcoin #Bitfinex 🔗 https://hubs.ly/Q02YmHFV0

💸 Bitfinex Hack: The Single Largest Seizure in US History 💸 In February 2022, IRS Criminal Investigation’s virtual currency seizure team, led by retired IRS-CI Special Agent Matt St. Jean, CFCE - now Asset Reality’s global seizure lead - carried out the single largest seizure in US history. The assets, approximately 94,000 BTC (then worth USD 3.6 billion, now close to USD 9 billion), were proceeds of the 2016 theft of 119,754 BTC stolen from #Bitfinex by Ilya Lichtenstein and subsequently laundered by Lichtenstein and his wife, Heather “Razzlekhan” Morgan. The couple’s eccentric online personas, crypto-themed rap songs, and the sheer value of the stolen funds captured global attention, with their story now set to be immortalised in a Netflix documentary series and the upcoming film Dutch & Razzlekhan. This week, the case finally drew to a close after both parties pled guilty to money laundering conspiracy charges. Lichtenstein was sentenced to 60 months after admitting he was the original hacker behind the breach, while his wife Morgan, who helped to launder the stolen funds, had her sentence reduced from 63 months to 18 months after agreeing to return the stolen assets under the Mandatory Victim Restitution Act. Only a handful of people in the world have executed billion-dollar seizures, and even fewer can claim to have done it more than once, like Matt. However, no matter the size of the seizure, the immutability of the blockchain is unforgiving, and transferring virtual assets is fraught with personal risks for those charged with seizing and taking custody of them. Asset Reality’s seizure tools (#AgentApp and #ArcPlatform) and Virtual Asset Transfer Fundamentals (#VATF) training certification help mitigate those risks by providing seizing agents, investigators, and asset managers with the tools and the knowledge they need to securely seize and efficiently manage virtual assets like #cryptocurrency. Read more about the #BitfinexHack 👇 https://lnkd.in/ggcrVFkX Find out more about seized asset best practices 👇 https://lnkd.in/eewBKhz8 Build confidence in seizing, managing and disposing of virtual assets through our practical training 👇 https://lnkd.in/gKcDR4Vt

📒 Don't miss Solidus Labs recent analysis on the exploit that, according to the U.S. Department of Justice, put "the very integrity of the Ethereum blockchain" at risk! Read the full report below 👇🏻

While this isn't recent news (happened 7th Nov 2024) there are some valuable takeaways to note regarding personal security. "The average crypto person, even early adopters who may be multi-millionaires, tend not to have really great physical security, and often they don't have great operational security or privacy." With the price of crypto going up, most notably Bitcoin hitting over $90,000 USD, coupled with the ease and speed with which it can be transferred, is allowing for these types of 'express kidnappings' to become more common, with 171 cases noted. As an individual, it is time to rethink your online security and your overall personal security and awareness, as crime rates, in general, are on the rise, with the cost of living among the reasons. Full article below, https://lnkd.in/gxqpyirD

❗ Another crypto scam. This time the FBI has created its own crypto token to expose fraud. 💡 Isn't it time for the industry to do some clean up? 🧐 Is the goal of "financial inclusion" only an empty statement to cover up for fraudulent activities? #blockchain#crypto#tokenisation#progress#cryptotrading#initialcoinoffers#democracy#inclusion#financialinclusion#Desiree Verga Oddo https://lnkd.in/ebpvj2r4

🔍 Unmasking the Deception: The Rug Pull Crypto Scam 🕵️♂️ Don't let your investments fall prey to deceitful tactics! Our latest blog post delves into the shadows of the crypto world to shed light on this notorious threat. Arm yourself with knowledge and protect your assets. Read now! 👉 https://lnkd.in/gb3EdQ58 #Disrupttech #CryptoDebitCards #CryptoSafety #InvestmentProtection #StayInformed #CryptocurrencyScams #RiskAwareness #FinancialSecurity #RugPullAlert #CryptoInsights #StayVigilant #KnowledgeIsKey #DigitalFrontier #ScamPrevention #SecureInvesting #CryptocurrencyEducation #StayAlert #ProtectYourAssets #ScamAwareness #CryptoEducation #InvestmentSafety #StayWary #FinancialAwareness #ScamPrevention101 #BeInformed #RugPullExposed #SecureTrading #StayCautious #CryptoRiskManagement #FraudAlert #SafeInvesting #BeVigilant

"Man Convicted of Violent Home Invasion Robberies to Steal Cryptocurrency" "A federal jury in Greensboro, North Carolina, convicted a Florida man today for his lead role in an international conspiracy to break into U.S. citizens’ homes, violently kidnap and assault them, and steal their Bitcoin and other cryptocurrency. ... Evidence introduced at trial revealed that St Felix and his co-conspirators gained unauthorized access to their targets’ email accounts and conducted physical surveillance prior to attempting the home invasion robberies. ... They laundered the funds they stole through anonymity-enhanced cryptocurrencies such as Monero, as well as “instant exchanges” and decentralized finance platforms that did not conduct know-your-customer checks. St Felix and his co-conspirators in the United States and abroad used encrypted messaging applications to communicate about their targets and their money laundering efforts." ------ As somebody who has a small amount of crypto, I follow the crypto space way more than the average bear. From my observations, many crypto investors and crypto influencers openly brag about how much crypto they have, and how much bank they are making. Sometimes it's just to boast. Often it's because they are involved in pumping a 'project' (as they are called) - trying to get people to buy high what they bought low, or what they got basically just for being the project's shill. But, from an OPSEC perspective, they draw a lot of attention to themselves, and, likely, help to enable their targeting. - One crypto influencer who has beaucoup crypto was recently traveling the Balkans and eastern Europe, and regularly posting pics of his location and where he was eating at in realtime. - One crypto influencer in LA last weekend, was posting pics of a nightclub she was at. She does regular YouTube videos from her house in LA. How hard would it be to follow her and figure out where she and her kid live? It's not really all that hard to put a gun to somebody's head and to tell them to start transferring money from their wallet to a criminal's wallet. Or to swap their crypto from Bitcoin to Monero, and to send the Monero to another wallet. https://lnkd.in/eCxeMG9u #cryptocurrency #personalsecurity #cybersecurity #cybersecurityawareness #fraudprevention #scamprevention

Very familiar with the story...but still putting this on the watchlist 👀 #BlockchainForensics #BlockchainInvestigations #CryptoTracing https://lnkd.in/gR-X7wcq

#bitcoin and #cryptocurrencies Their Sole Aim is to commit FRAUD.Many Cases.Sad.

🚨 Crypto News: The SEC has dropped the hammer on three individuals accused of running a $2.9M Bitcoin-related scam, impersonating brokers, and duping unsuspecting investors. Here’s the wild part—the alleged masterminds behind the scheme went full Hollywood, using voice-modification software, spoofed phone numbers, and even AI-driven tactics to pose as legit securities professionals. According to the SEC, they didn’t just stop at fake identities. The defendants allegedly created websites, online accounts, and trading app interfaces that showed impressive, yet completely fictional, returns of up to 25%. Investors were lured into this web of deceit, only to have their funds rerouted to blockchain addresses controlled by the scammers. This case highlights the increasing sophistication of fraud in the digital asset space, where traditional con tactics meet crypto. Regulators like the SEC’s Crypto Assets and Cyber Unit are stepping up to tackle the complex intersection of blockchain, decentralized networks, and scams. This time, they’re gunning for permanent injunctions and hefty penalties. Pro tip: Always do your homework before transferring funds via crypto. Verify identities, steer clear of unverified apps, and remember—if it sounds too good to be true, it probably is. #CryptoScams #BitcoinFraud #Blockchain