• Ilya Lichtenstein went from a high-profile defendant into a government witness. He testified against a mixing company that he used in order to conceal laundered funds from the Bitfinex hack.
  • He told the jury that Bitcoin fog, a favorite on darknets, wasn’t up to par with other mixers.

Ilya Lichtenstein is one of crypto’s highest-profile criminals. He’s now helping federal prosecutors with their cases against Bitcoin Fog. This was one of the mixing services that he claimed he used to hide assets.

Bloomberg News reported that Lichtenstein, who is known for hacking Bitfinex and stealing bitcoins worth $3.6 Billion, appeared in Washington, D.C., this week to testify against the operator of a mixing service linked to darkweb criminality.

Bloomberg reports that Lichtenstein, who was charged and pleaded guilt along with his wife Heather “Razzlekhan Morgan”, told the jury he used Bitcoin Fog, as well as other mixers, to “obfuscate,” the funds from Bitfinex’s hack, but that it wasn’t his main method of laundering. He told the jury that he had moved on to other mixers once he found services that “suited his needs better.”

It was unprecedented for the U.S. Department of Justice to seize billions of dollars in cryptos in the Bitfinex Case.

In the Bitcoin Fog Case, U.S. Authorities had arrested and accused Roman Sterlingov of money laundering for his operation of the mixing services in 2021. In that case, he is now on trial.

Nikhilesh De.