Ilya Lichtenstein, the notorious hacker behind the 2016 Bitfinex heist, testifies against Roman Sterlingov, the alleged mastermind of the Bitcoin Fog laundering service. Arrested in 2021, Sterlingov faces accusations of washing 1.2M BTC tied to the dark web.
Lichtenstein, caught with his wife Heather Morgan in 2022 for attempting to clean $4.5B from Bitfinex, pleads guilty and now aims to aid the government. His trial testimony sheds light on his laundering tactics. They used Bitcoin Fog ten times before switching to another mixer, Helix. After that, they moved the stolen cache to exchange accounts bought from the dark web.
He explains that he never knew Sterlingov directly, emphasizing the enigmatic and detached character of cryptocrime. Sterlingov's prosecution is around allegations of money laundering and unlawful money transmission. His defense responds, claiming a lack of substantial evidence, such as eyewitness testimony or server logs, as a challenge for the prosecutors.
The jury deliberates as Lichtenstein's insider narrative provides insight into the tactics of cryptocurrency theft and its motivators, particularly financial need. The outcome is unknown, but the insights gained through Lichtenstein's collaboration could be critical.
