Two Russian nationals, Alexey Bilyuchenko and Aleksandr Verner, have been charged with stealing millions from the now-defunct crypto exchange Mt Gox. This incident dates back to 2011 when the pair, along with their co-conspirators, allegedly conspired to launder around 647,000 bitcoins that were stolen from Mt Gox.
Bilyuchenko is also accused of collaborating with Alexander Vinnik to operate the infamous BTC-e exchange from 2011 to 2017. The stolen bitcoins were reportedly laundered through two other online bitcoin exchanges, as well as through an advertising contract with New York Bitcoin Broker, where wire transfers were made into offshore accounts under the guise of shell companies, totaling approximately $6.6 million between 2012 and 2013.
Mt Gox, once a leading crypto exchange, was forced to halt its operations in 2014 after the massive theft was uncovered. Despite this, Bilyuchenko continued his illicit activities by operating BTC-e alongside Vinnik and others until the exchange was shut down by authorities in July 2017. The Department of Justice (DoJ) has accused BTC-e of laundering billions for cyber-criminals, drug cartels, corrupt officials, and other illicit entities.
Alexander Vinnik, who was arrested in Greece and is currently awaiting trial in California for his involvement in BTC-e, is also linked to money laundering offenses in France and is believed to have played a key role in the development of the Locky ransomware.
The current whereabouts of Bilyuchenko and Verner are unknown, but if they are residing in Russia, they are unlikely to face trial for their alleged crimes. The intricate web of cryptocurrency theft and money laundering schemes highlights the challenges faced by law enforcement agencies in combating cybercrime in the digital age.