DOJ Charges Two Individuals with Conspiracy to Launder Billions in Stolen Cryptocurrency

The DOJ charged two individuals with conspiracy to commit money laundering and conspiracy to defraud the United States, related to cryptocurrency stolen during a 2016 hack of Bitfinex, a virtual currency exchange.

The criminal complaint against the two individuals alleges that they utilized various "sophisticated laundering techniques," including: (i) utilizing fictitious identities for online accounts; (ii) using computer programs to automate transactions; (iii) depositing the stolen crypto funds into "accounts at a variety of virtual currency exchanges and darknet markets and then withdrawing the funds"; (iv) converting bitcoin into other cryptocurrencies by using a practice called "chain hopping"; and (v) using "U.S.-based business accounts to legitimize their banking activity."

The DOJ stated that it seized over $3.6 billion in cryptocurrency linked to the hack.