Mt.Gox
Mt.Gox

DOJ cracks down on Cryptocurrency Theft: Russians charged in Mt. Gox Hack

What To Know

  • The accused parties, Alexey Bilyuchenko and Aleksandr Verner, now find themselves entangled in legal proceedings in the Southern District of New York (SDNY), as they stand accused of engaging in the laundering of around 647,000 bitcoins, which were tied to the audacious heist.
  • In the Southern District of New York (SDNY), the legal battle ensues for Alexey Bilyuchenko and Aleksandr Verner, who now find themselves confronted with charges of conspiracy to commit money laundering in connection to the infamous Mt.
  • According to the US Department of Justice (DOJ), the group of alleged conspirators is accused of carrying out fraudulent activities by entering into an advertising contract with a New York-based Bitcoin brokerage service.
  • Polite emphasized the unwavering commitment of the Department of Justice to prosecute individuals engaged in illicit activities within the cryptocurrency realm and to safeguard the integrity of the financial system.

Mt. Gox: In a significant declaration, the US Department of Justice has unveiled charges against a duo of Russian individuals linked to the notorious 2011 hacking event surrounding Mt. Gox. This cryptocurrency exchange, once among the most prominent platforms, fell victim to the breach.

The accused parties, Alexey Bilyuchenko and Aleksandr Verner, now find themselves entangled in legal proceedings in the Southern District of New York (SDNY), as they stand accused of engaging in the laundering of around 647,000 bitcoins, which were tied to the audacious heist. 

Notably, Bilyuchenko faces additional charges in the Northern District of California (NDCA), of his purported role in the operation of the well-established Russian cryptocurrency exchange known as BTC-e.

US Department of Justice Charges Russian Individuals in Mt. Gox Hacking Case

In the Southern District of New York (SDNY), the legal battle ensues for Alexey Bilyuchenko and Aleksandr Verner, who now find themselves confronted with charges of conspiracy to commit money laundering in connection to the infamous Mt. Gox hacking incident. If proven guilty, they could each be subject to a maximum prison term of 20 years for these specific allegations.

Furthermore, Bilyuchenko faces an additional set of charges in the Northern District of California (NDCA), encompassing conspiracy to commit money laundering as well as operating an unlicensed money services business. Should the charges presented in the NDCA indictment lead to a conviction, Bilyuchenko potentially faces a maximum sentence of 25 years behind bars.

As per the official statement from the US Department of Justice (DOJ), it has been revealed that Alexey Bilyuchenko, and Aleksandr Verner, along with their accomplices, successfully breached the server hosting Mt. Gox’s cryptocurrency wallets during the approximate timeframe of September 2011.

Once inside, the accused individuals purportedly orchestrated the unauthorized transfer of customers’ bitcoins, redirecting them to accounts they controlled. Furthermore, they stand accused of engaging in the laundering of the pilfered bitcoins, a process executed by transferring them to accounts held on various other cryptocurrency exchanges, which were operated by the same group.

According to the US Department of Justice (DOJ), the group of alleged conspirators is accused of carrying out fraudulent activities by entering into an advertising contract with a New York-based Bitcoin brokerage service.

This partnership served as a conduit for them to request regular transfers to offshore bank accounts, held under the names of shell corporations controlled by Alexey Bilyuchenko, Aleksandr Verner, and their co-conspirators. The DOJ further reveals that during the period spanning from March 2012 to April 2013, the group successfully funneled over $6.6 million through these illicit means.

US Assistant Attorney General Kenneth A. Polite, Jr. has expressed the significance of the recent announcement, stating that it marks a major milestone in two significant cryptocurrency investigations. He underscored the allegations against Alexey Bilyuchenko and Aleksandr Verner, highlighting their alleged involvement in the substantial theft of cryptocurrency from Mt. Gox, ultimately leading to the exchange’s insolvency.

Furthermore, Bilyuchenko is accused of playing a role in the establishment of the notorious BTC-e virtual currency exchange, which facilitated the laundering of funds for cybercriminals worldwide. Polite emphasized the unwavering commitment of the Department of Justice to prosecute individuals engaged in illicit activities within the cryptocurrency realm and to safeguard the integrity of the financial system.

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