• U.S Department of Justice (DOJ) has charged two Russians, Alexey Bilyuchenko and Aleksandr Verner, with conspiring to launder 647,000 Bitcoin (BTC).
• The DOJ accused them of using their unauthorized access to Mt. Gox servers to transfer BTC between 2011 and 2014.
• Additionally, the DOJ is charging Bilyuchenko and Alexander Vinnik for conspiring to operate BTC-E – a crypto exchange which was shut down in 2017 for facilitating criminal activities.
US DOJ Charges Two Russians With Laundering Over 600k Bitcoin
The U.S Department of Justice has charged two Russians, Alexey Bilyuchenko and Aleksandr Verner, for conspiring to launder 647,000 Bitcoin (BTC) stolen from their hack of Mt. Gox in 2011, according to a June 9 statement.
Unauthorized Access To Mt Gox Servers
The DOJ accused them of using their unauthorized access to Mt. Gox servers to transfer BTC to wallets controlled by them and their co-conspirators between 2011 and 2014.
Conspiracy To Operate BTC-E Exchange
Additionally, the DOJ is charging Bilyuchenko and Alexander Vinnik for conspiring to operate BTC-E. This crypto exchange was shut down in 2017 by the authorities because it facilitated ways for criminals to transfer, launder, and store their criminal proceeds.
Remarks From The Assistant Attorney General
The assistant attorney general of DOJ’s criminal division, Kenneth A. Polite Jr., said the accused had used their criminal proceeds from the Mt Gox hack “to begin the notorious BTC-e virtual currency exchange which laundered funds for cybercriminals worldwide“.
Conclusion
The case serves as an example that cryptocurrency exchanges can be held accountable for facilitating illegal activities on its platform or allowing customers who are involved in illicit activities transact without proper due diligence being applied first.