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Justice Department arrests Manhattan couple, seizes 3.6 billion in hacked Bitcoin funds
ktla ^ | Robert Puente

Posted on 02/09/2022 4:27:00 PM PST by BenLurkin

On Tuesday, the U.S. Justice Department announced it seized most of the 119,754 Bitcoins (worth almost 3.6 billion today) lost during this infamous hack and have arrested a New York couple who is accused of attempting to launder the stolen funds.

Ilya Lichtenstein, 34, and his wife Heather Morgan, 31, were arrested without incident Tuesday morning in Manhattan and face charges related to conspiracy to commit money laundering and conspiracy to defraud the U.S. Government. The couple, however, is not being charged for the hack itself as the investigation is ongoing.

The department partially credited the “blockchain” or the underlying technology in Bitcoin for their success in retrieving the stolen funds.

(Excerpt) Read more at ktla.com ...


TOPICS: Computers/Internet
KEYWORDS: bitcoin

1 posted on 02/09/2022 4:27:00 PM PST by BenLurkin
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To: BenLurkin

It is obviously not the anonymous panacea from Government theft some folks might think it is.


2 posted on 02/09/2022 4:31:07 PM PST by Nateman (Xi Jinping is the most diabolical enemy America has ever had. 🍊)
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To: BenLurkin

Interesting multicultural name there. Russian first name and German or Jewish last name.


3 posted on 02/09/2022 4:33:35 PM PST by PAR35
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To: BenLurkin

Bet Heather walks off into the sunset.


4 posted on 02/09/2022 4:40:07 PM PST by Steely Tom ([Voter Fraud] == [Civil War])
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To: BenLurkin

While there is a level of anonymity with blockchain, it is possible to identify the owner of a wallet (address) that is holding the coins in question. It does require some detective work to identify the wallet owner. Lots of times the detective work can be done outside of the chain.

For example, if a person goes to an ATM that is blockchain enabled and withdraws funds, the transaction is recorded in the chain, likely the bank or service that owns the ATM can identify the specific date and time. By consulting video feeds, it is often possible to get a face or car license plate, cell phone SIM, etc. Piece together a few of these and it will point to one or two people.


5 posted on 02/09/2022 4:41:38 PM PST by taxcontrol (The choice is clear - either live as a slave on your knees or die as a free citizen on your feet.)
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To: BenLurkin

Whoa, from .01% elites to jailbirds in moments.

Bummerooski.


6 posted on 02/09/2022 4:42:26 PM PST by SaxxonWoods ("If you see no reason for giving thanks, the fault lies in yourself." - Minquass)
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To: BenLurkin

Most or the vast majority? #bringbackourbitcoin


7 posted on 02/09/2022 4:44:02 PM PST by aynrandfreak (Being a Democrat means never having to say you're sorry)
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To: PAR35

“Interesting multicultural name there. Russian first name and German or Jewish last name.”

Only because most of the famous Russian Jews took other names.

Perhaps a little study on the Russian revolution and Russian Jew influence in our media and Hollywood is in order.

https://en.wikipedia.org/wiki/History_of_the_Jews_in_Russia#Jews_in_the_revolutionary_movement

Ever here of Benjamin Wonsal? Nope. He changed his name to Warner. The Warner brothers were Russian Jews.


8 posted on 02/09/2022 4:48:47 PM PST by TexasGator (UF)
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To: PAR35

Interesting story about European Jewish names:

https://jewishstandard.timesofisrael.com/ashkenazic-names-2/

… Ashkenazic Jews were among the last Europeans to take family names. Some German-speaking Jews took last names as early as the 17th century, but the overwhelming majority of Jews lived in Eastern Europe and did not take last names until compelled to do so. The process began in the Austro-Hungarian Empire in 1787 and ended in Czarist Russia in 1844...


9 posted on 02/09/2022 4:51:06 PM PST by jjotto ( Blessed are You LORD, who crushes enemies and subdues the wicked.)
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To: BenLurkin

So how do you carry around 3.6 million Bitcoin? Is it a thrumbdrive/password with access to a network? Anybody got change for a Bitcoin?


10 posted on 02/09/2022 4:52:12 PM PST by Delta 21 (It started as a virus, and mutated into an IQ test.)
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To: Nateman
It is obviously not the anonymous panacea from Government theft some folks might think it is.

Just like trying to pass marked bills.

11 posted on 02/09/2022 4:56:20 PM PST by Yo-Yo (Is the /sarc tag really necessary?)
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To: BenLurkin

hacked Bitcoin?

I didn’t that was supposed to be possible.


12 posted on 02/09/2022 4:56:20 PM PST by farmguy
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To: farmguy

No hacking of Bitcoin itself occurred. The theft was accomplished by hacking Bitfinex who had custody of some Bitcoin.

The Feds found the keys to most of the stolen Bitcoin and copious other evidence in files the couple had online. Whoever owns the keys owns the Bitcoin.


13 posted on 02/09/2022 5:33:39 PM PST by JustaTech (A mind is a terrible thing)
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To: TexasGator

Rosa Luxemburg was a German Jew.


14 posted on 02/09/2022 6:00:19 PM PST by PAR35
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To: PAR35

“Rosa Luxemburg was a German Jew.”

Not sure of why you mention her but she was not German.


15 posted on 02/09/2022 6:52:49 PM PST by TexasGator (UF)
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To: TexasGator
Not sure of why you mention her but she was not German.

She died a German citizen, she got her citizenship in 1898. Born in the Russian empire, in what later became part of Poland. Despite getting her degree in Switzerland, she apparently never picked up Swiss citizenship to add to her collection.

So feel free to call her a Russian Jew or a Polish Jew if her German citizenship is offensive.

16 posted on 02/09/2022 8:43:43 PM PST by PAR35
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To: PAR35

“She died a German citizen, she got her citizenship in 1898.”

A political necessity to help her international ambitions.

Luksemburg continued to identify as Polish and disliked living in Germany, which she saw as a political necessity, making various negative comments about contemporary German society in her private correspondence that was written in Polish; at


17 posted on 02/09/2022 8:48:37 PM PST by TexasGator (UF)
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To: PAR35

I still don’t know why you referenced her?


18 posted on 02/09/2022 8:49:39 PM PST by TexasGator (UF)
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To: Nateman

It is obviously not the anonymous panacea from Government theft some folks might think it is.


That is the huge takeaway from the story for me. They expose their hand here.


19 posted on 02/10/2022 6:23:43 AM PST by cuban leaf (My prediction: Harris is Spiro Agnew. We'll soon see who becomes Gerald Ford, and our next prez.)
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To: BenLurkin

Contrary to what the media claims, using Bitcoin would be an especially bad choice for criminals. Every single Bitcoin can be traced. The blockchain holds a permanent record.

If you want to use crypto for privacy or for criminal purposes, you would need to use a privacy token like Monero which the IRS has been unable to break.


20 posted on 02/10/2022 7:26:47 AM PST by FLT-bird
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