Connect with us

Bitcoin

Russian Individuals Charged for $400 Million Mt. Gox Bitcoin Hack

June G. Bauer

Published

on

The United States federal government has charged two Russian individuals in connection with the infamous Mt. Gox Bitcoin exchange breach that occurred in 2014. In a recent press release, the Department of Justice revealed the unsealing of a 2019 indictment, charging Alexey Bilyuchenko and Aleksandr Verner with conspiracy to launder approximately 647,000 Bitcoins, valued at around $400 million at the time, stolen from the exchange.

The charges against Bilyuchenko and Verner also extend to their alleged collaboration with Alexander Vinnik, who was previously indicted by the Department of Justice in 2017 and later extradited to the United States. The indictment states that the accused individuals operated BTC-e, a now-defunct cryptocurrency exchange that served as a hub for cybercriminals worldwide to transfer, launder, and store the proceeds of illegal activities.

The charges brought against Bilyuchenko and Verner are the result of collaborative efforts between the Southern District of New York, the Northern District of California, and the Department of Justice’s Criminal Division. The indictments signify a major milestone in the ongoing investigations into these significant cryptocurrency cases and underscore the commitment of law enforcement agencies to combat illicit activities in the digital currency landscape.

Speaking about the indictments, U.S. Attorney Damian Williams emphasized the determination of prosecutors and law enforcement to pursue individuals who employ sophisticated hacking techniques to steal and launder substantial amounts of cryptocurrency. Assistant Attorney General Kenneth A. Polite, Jr. echoed this sentiment, emphasizing the Department of Justice’s dedication to holding accountable those who exploit the financial system and engage in criminal activities within the cryptocurrency ecosystem.

The charges filed in the Southern District of New York primarily relate to the unauthorized access and subsequent transfer of stolen bitcoins from Mt. Gox’s wallets to accounts controlled by Bilyuchenko, Verner, and their co-conspirators. The indictment outlines a money laundering scheme involving the negotiation of a fraudulent advertising contract, which allowed the accused to conceal and liquidate the stolen bitcoins. Mt. Gox ceased operations in 2014 after the extent of the breach came to light.

In the Northern District of California, Bilyuchenko faces additional charges of conspiracy to commit money laundering and operating an unlicensed money services business, related to his collaboration with Vinnik and the operation of BTC-e.

The charges against Bilyuchenko and Verner highlight the U.S. government’s determination to combat cybercrime and protect the integrity of financial markets. The investigation and prosecution of individuals involved in cryptocurrency-related criminal activities demonstrate that law enforcement agencies possess the necessary tools and expertise to pursue complex schemes and bring the perpetrators to justice.

It is important to note that the charges presented in the indictments are allegations, and the defendants are presumed innocent unless proven guilty in a court of law.

Pop cultureaholic, Technology expert, Web fanatic and a Social media geek. If you have any questions or comments please feel free to email her at june@thecoinspost.com or contact her on Twitter @JuneTBauer1

Bitcoin

Telecom Giant Vodafone Bringing Crypto to the Masses Via SIM Cards

June G. Bauer

Published

on

The major telecom company Vodafone has unveiled an ambitious plan to integrate cryptocurrency wallets directly into the SIM cards used by mobile phones on its network. This cutting-edge move aims to make blockchain technology and crypto easily accessible to millions of smartphone users worldwide.

What’s Happening?

Vodafone, one of the largest mobile operators based in the UK, intends to combine crypto wallets with the subscriber identity module (SIM) cards inside phones. SIM cards are little chips that allow mobile devices to connect to a carrier’s network.

By embedding a crypto wallet into these ubiquitous SIM cards, Vodafone wants to introduce blockchain and virtual currency technology to the masses through the smartphones we all use daily.

The Bigger Blockchain Picture

This crypto SIM integration is part of Vodafone’s bigger blockchain strategy. The company has developed its own “PairPoint Digital Asset Broker” platform to enable secure digital identities and transactions across different blockchains.

Vodafone’s blockchain lead David Palmer emphasized in an interview that mobile phones are the main way billions access digital services and commerce. So partnering blockchain with SIM card tech is crucial for widespread adoption.

By 2023, there will be over 8 billion mobile phones in use globally. And estimates suggest crypto wallets on smartphones could reach 5.6 billion by 2030 as digital money goes mainstream.

Financial Restructuring

The crypto wallet announcement comes as Vodafone seeks to restructure its finances and raise billions in new funds through debt offerings and loans over the next couple years.

The company plans to take on $2.9 billion in total debt, including $1.8 billion in direct loans. Some of this financial overhaul relates to issues at Vodafone’s Indian subsidiary Vodafone Idea Ltd.

While navigating these monetary hurdles, Vodafone still sees major opportunities in emerging technologies like blockchain and aims to be an innovator helping drive mainstream crypto adoption through the SIM card strategy.

Continue Reading

Bitcoin

No Evidence of Hack, Says Bitfinex CTO Amid Ransomware Gang’s Allegations

MNabilAli

Published

on

By

In the world of cybersecurity, claims of data breaches can cause significant concern and speculation. Recently, a ransomware group named FSOCIETY claimed to have successfully hacked several organizations, including the cryptocurrency exchange Bitfinex. However, Bitfinex’s Chief Technology Officer (CTO), Paolo Ardoino, has dismissed these rumors, stating that a thorough analysis of their systems revealed no evidence of a breach.

According to Ardoino, who is also the CEO of Tether, less than 25% of the email addresses allegedly stolen from Bitfinex’s servers match legitimate users. This casts doubt on the validity of FSOCIETY’s claims regarding the supposed hack.

The ransomware group, styled after the fictional hacking group from the TV show “Mr. Robot,” claimed to have breached several victims, including Rutgers University, consulting firm SBC Global, and a cryptocurrency exchange they referred to as “Coinmoma,” which is likely a misspelling of Coinmama.

Ardoino expressed skepticism about the group’s claims, stating that if they had indeed hacked Bitfinex, they would have demanded a ransom through the exchange’s bug bounty program, customer support channels, emails, or social media accounts. However, Bitfinex received no such requests from FSOCIETY.

Furthermore, Ardoino shared a message from a security researcher suggesting that the real motivation behind the alleged hacks might be to promote FSOCIETY’s ransomware tools, which they reportedly sell access to in exchange for a subscription fee and a commission on stolen profits. Ardoino questioned the group’s need to sell their tools for $299 if they had truly hacked a major exchange like Bitfinex.

It’s worth noting that Bitfinex has previously fallen victim to a significant hack in 2016, resulting in the theft of a substantial amount of Bitcoin. Two individuals, including crypto rapper ‘Razzlekhan,’ pleaded guilty to money laundering charges in connection with that incident.

Hacking group FSOCIETY published claims

While the claims made by FSOCIETY have yet to be verified by the alleged victims, Bitfinex’s CTO remains firm in his stance that no breach has occurred. As cybersecurity threats continue to evolve, it is crucial for organizations to remain vigilant and take proactive measures to protect their systems and users’ data.

Continue Reading

Bitcoin

Indian Police Seize 268 Bitcoins Worth $17 Million in Crypto Bust

sying.tien

Published

on

Indian authorities have seized a large sum of bitcoins from a resident of Haldwani, a city in the northern Indian state of Uttarakhand. The seized cryptocurrency stash of 268 bitcoins is worth around $17 million at current prices.

The Enforcement Directorate (ED), a law enforcement agency that investigates financial crimes, carried out the bitcoin seizure. They arrested Parvinder Singh from his home in Haldwani after a raid prompted by information from US authorities.

Singh is allegedly part of an international drug trafficking syndicate called “The Singh Organization.” The criminal group used dark web marketplaces like Silk Road to sell drugs in the US, UK and other European countries.

To hide their illegal activities, the syndicate laundered the drùg money by converting it into bitcoins and other cryptocurrencies. ED officials said Singh and his associates received around 8,488 bitcoins over the years from their drùg sales on the dark web.

The bitcoin seizure was a rare collaboration between Indian and US law enforcement agencies. American officials have been investigating Singh and his accomplice Banmeet Singh for their roles in the international drùg cartel.

Cryptocurrencies like bitcoin are popular among criminals due to the anonymity they provide. However, this case shows authorities are getting better at tracing illegal crypto transactions and bringing the perpetrators to justice.

The investigation is still ongoing, and more arrests and seizures are expected as officials unravel the entire money laundering operation of The Singh Organization.

Continue Reading

Popular