Russian Nationals Accused of Hacking Mt. Gox and Laundering Bitcoin
The U.S. Department of Justice (DOJ) has accused Russian nationals Alexey Bilyuchenko and Aleksandr Verner of hacking the now defunct cryptocurrency exchange Mt. Gox in 2011, laundering bitcoin from the hack, and running an illicit crypto exchange.
Key Allegations
- DOJ alleges that Bilyuchenko and Verner laundered bitcoin linked to the Mt. Gox hack.
- The funds were used to establish another exchange called BTC-e, popular among criminal networks.
- Accused engaged in fraudulent contracts with a New York-based bitcoin broker to launder stolen bitcoins.
Laundering the Proceeds from the Mt. Gox Hack
In September 2011, Bilyuchenko, Verner, and their accomplices gained unauthorized access to Mt. Gox’s cryptocurrency wallets, transferring bitcoins to their own addresses. Over three years, they allegedly stole around 647,000 bitcoins from Mt. Gox.
The stolen bitcoins were laundered through accounts controlled by the accused on other bitcoin exchanges and Mt. Gox itself. They also engaged in fraudulent contracts with a New York-based bitcoin broker.
Mt. Gox’s collapse in 2014 led to financial losses for users, with ongoing uncertainty about asset distribution. The charges could result in more funds being recovered for Mt. Gox’s victims.
Another Russian national, Alexander Vinnik, was previously charged with operating BTC-e in 2017.