Bitfinex money launderer ‘Razzlekhan’ sentenced to 18 months in prison

November 18, 2024 Coin Telegraph

bitfinex

A federal judge sentenced Heather Morgan, also known as Razzlekhan, to 18 months in prison for laundering stolen Bitcoin connected to Bitfinex.

One of the two individuals responsible for laundering stolen Bitcoin connected to the 2016 hack of crypto exchange Bitfinex has been sentenced to 18 months in prison.

Washington, DC, District Court Judge Colleen Kollar-Kotelly sentenced Heather Morgan — also known by her rapper alter ego “Razzlekhan” — to 18 months in prison in a Nov. 18 hearing. Morgan pleaded guilty to conspiracy to commit money laundering and defraud the United States in August 2023.

Morgan and her husband, Ilya Lichtenstein, admitted to laundering millions of dollars worth of Bitcoin (BTC) stolen from Bitfinex before their 2022 arrests. US authorities initially suspected the couple had only been responsible for laundering the stolen funds, but Lichtenstein later admitted in court to hacking the exchange.

Bitfinex hacker sentenced to 5 years in prison

November 15, 2024 Coin Telegraph

bitfinex

US authorities arrested Ilya Lichtenstein and his wife, Heather Morgan, in 2022 for laundering Bitcoin connected to the Bitfinex exchange.

Ilya Lichtenstein, the hacker who stole billions worth of Bitcoin from the crypto exchange Bitfinex in 2016, was sentenced to five years in prison.

Washington, DC, District Court Judge Colleen Kollar-Kotelly sentenced Lichtenstein in a Nov. 14 hearing after he pleaded guilty to conspiracy to commit money laundering in August 2023. In addition to jail time, Lichtenstein was ordered to serve three years of supervised release.

Lichtenstein was facing up to 20 years in jail, but prosecutors had recommended he serve five years as he had no prior criminal history, gave “substantial assistance” in other investigations and managed to launder only 25,111 Bitcoin (BTC) out of the 119,754 BTC he stole from Bitfinex, currently worth over $10.4 billion with the cryptocurrency priced around $87,500.

Pennsylvania lawmaker introduces bill for ‘strategic Bitcoin reserve’

November 14, 2024 Coin Telegraph

Bitcoin

The proposed legislation would allow the State of Pennsylvania’s Treasurer to invest up to 10% of its funds in Bitcoin, suggesting a multibillion-dollar investment.

Pennsylvania lawmakers have introduced legislation in the state’s House of Representatives to permit its treasury to hold up to 10% in Bitcoin on its balance sheet.

In a Nov. 12 memo, Representative Mike Cabell, a Republican, said he had proposed the bill as a tool to protect against inflation, claiming using Bitcoin (BTC) as a hedge could “offer stability in uncertain economic times.”

The legislation, if passed, would allow Pennsylvania’s Treasurer to invest up to 10% of the State General Fund, the Rainy Day Fund and the State Investment Fund in Bitcoin. As of November, the state’s Treasury reported it had more than $9.7 billion in its General Fund and roughly $7 billion in its Rainy Day Fund.

US gov’t points to Gary Wang’s ’outstanding cooperation’ in FTX case

November 13, 2024 Coin Telegraph

Coin Telegraph

Prosecutors suggested that the FTX co-founder would be better able to develop a tool to detect “potential illegal activity” in crypto markets if sentenced to time served.

FTX co-founder Gary Wang, scheduled to be sentenced for his role in the criminal misuse of funds at the defunct cryptocurrency exchange, could receive time served after a sentencing memo filed by the United States government.

In a Nov. 13 filing in the US District Court for the Southern District of New York, prosecutors penned a sentencing memo to highlight Wang’s “substantial assistance in the investigation of wrongdoing at FTX, the prosecution and trial of Bankman-Fried, and in other matters.” The FTX co-founder is scheduled to be sentenced on Nov. 20, following a December 2022 guilty plea for wire fraud, commodities fraud, and securities fraud.

Source: SDNY

Judge denies ex-Celsius CEO’s bid to dismiss fraud, manipulation charges

November 11, 2024 Coin Telegraph

Alex Mashinsky

A federal judge ruled that Alex Mashinsky’s legal team’s arguments to dismiss two of his seven criminal charges were “either moot or without merit.”

Lawyers representing Alex Mashinsky, the former CEO of the crypto platform Celsius facing a criminal indictment in the United States, have lost a motion to drop two charges related to commodities fraud and manipulating the price of the Celsius (CEL) token.

In a Nov. 8 filing in the US District Court for the Southern District of New York, Judge John Koeltl ruled that Mashinsky’s legal team’s arguments to have the charges dismissed were “either moot or without merit.” The judge denied the motion to dismiss the two charges, leaving seven counts on the indictment for the former Celsius CEO’s trial, scheduled to begin in January 2025.

Source: SDNY

Canadian police praise Tether for ‘swift’ recovery of stolen funds

November 8, 2024 Coin Telegraph

Asset Freeze

The stablecoin firm previously came under fire from Wyoming Senator Cynthia Lummis for allegedly facilitating illicit finance activities.

The Ontario Provincial Police (OPP) thanked stablecoin issuer Tether for its assistance in aiding an investigation by freezing approximately 10,000 Canadian dollars ($7,186) in Tether stablecoins stolen from an individual, which has since been returned to the victim.

Tether worked alongside the OPP’s Cyber Investigations Team to recover the funds, and following the successful operation, Addison Hunter — detective staff sergeant of the OPP — remarked:

Tether CEO Paolo Adoino also highlighted the company’s commitment to “Supporting law enforcement efforts to combat cybercrime,” and will continue to work with law enforcement officials worldwide to “Hold bad actors accountable and, ultimately, support the victims.”

FTX tries to reclaim $11M from Crypto.com-controlled Alameda account

November 8, 2024 Coin Telegraph

FTX tries to reclaim M from Crypto.com-controlled Alameda account

Bankruptcy

Alameda Research has filed complaints against crypto exchange KuCoin and Crypto.com to recover millions in locked funds as FTX prepares to repay users.

Alameda Research, one of the sister firms connected to defunct crypto exchange FTX and a party to its bankruptcy case, is seeking to recover more than $11 million in a Crypto.com account held since 2022.

In a Nov. 7 filing in the United States Bankruptcy Court for the District of Delaware, Alameda filed a complaint to “recover at least $11.4 million in debtor assets contained in a Crypto.com exchange account” controlled by the company. The firm requested an order from the bankruptcy court “directing Crypto.com to turn over to the Debtors the assets” that were not of “inconsequential value.”

Source: Kroll

Ex-Alameda Research CEO to report to prison for 2-year sentence

November 7, 2024 Coin Telegraph

Alameda Research

Caroline Ellison has been free on bail since her guilty plea in 2022, testifying at Sam Bankman-Fried’s criminal trial and subject to intense scrutiny by the media.

Former Alameda Research CEO Caroline Ellison is expected to report to prison on Nov. 7 to serve her two-year sentence for her role in crimes at cryptocurrency exchange FTX.

At the time of publication, the Federal Bureau of Prisons (BOP) website stated Ellison was not in custody but provided an inmate number and her age, race and sex. On Sept. 24, Judge Lewis Kaplan of the United States District Court for the Southern District of New York sentenced Ellison to two years in prison, where she is expected to surrender no earlier than Nov. 7.

Source: Federal Bureau of Prisons

Judge pushes Tornado Cash co-founder trial to April 2025

November 1, 2024 Coin Telegraph

Coin Telegraph

Roman Storm, currently free on bail and facing three federal charges, will have another four months to prepare for his criminal trial.

Tornado Cash co-founder and developer Roman Storm won’t stand trial for money laundering and sanctions violation charges until April 2025.

In a Nov. 1 telephone conference for the United States District Court for the Southern District of New York, Judge Katherine Polk Failla ordered Storm’s trial adjourned until April 14, 2025. The Tornado Cash co-founder’s legal team had been petitioning to dismiss his charges, claiming they were based solely on him writing code for the cryptocurrency mixing service.

In 2023, prosecutors charged Storm and Tornado co-founder Roman Semenov with conspiracy to commit money laundering, conspiracy to commit sanctions violations and conspiracy to operate an unlicensed money-transmitting business. The indictment prompted outrage from many in the crypto industry.

Bitcoin can still hit $100K, no matter who wins US election

November 1, 2024 Coin Telegraph

Bitcoin can still hit 0K, no matter who wins US election

Coin Telegraph

The prospect of favorable regulations and Bitcoin’s hedge status mean that Bitcoin can weather any election result and even reach $100,000.

Opinion by Georgii Verbitskii, founder of TYMIO Yield and TYMIO Protect.

The 2024 United States presidential election has raised debates about how both candidates might shape the future of cryptocurrencies, particularly Bitcoin (BTC).

With the growing number of Bitcoin and altcoin holders in the United States, any winner would make crypto regulation a key issue.

Law

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