California Man Admits to Laundering Crypto Stolen in $230M Heist

[johny899]

I read this absolutely wild article today and I want to share it with you. A man from California finally admitted to being a part of a theft of cleaned up money from a gigantic $230 million dollar crypto heist called the Bitfinex hack. I thought you’d get a kick out of this considering how nutty this whole crypto space is.

So, what exactly happened here?​

Kunal Mehta, 45, of Irvine, California, pleaded guilty to laundering and transferring more than $25 million worth of cryptocurrency that was stolen in a $230 million theft.

The original crime ring stole roughly 4,100 Bitcoin from a victim in Washington D.C. At the height of the value of Bitcoin, the amount that was stolen came to in excess of $230 million.

How they laundered the stolen money​

Mehta helped conceal and transfer the stolen cryptocurrency through multiple means, including:

• Cryptocurrency mixers to obscure the transactions
• Multiple wallets to muddy any tracking
• VPNs to mask their identities
• “Peel chains” in which the money floated around in small pieces
• Front companies (sham businesses)
• Bank accounts that services wire transactions

He took a 10% cut every time he helped convert stolen cryptocurrency into cash.

Then, the group went on a spending spree; they spent like crazy to acquire private jets, pricey watches, and more than 28 luxurious vehicles, with many valued into the millions.

Why is this important?​

Crypto crime is evolving more sophisticated

This case illustrates that the notion of crypto criminals is way beyond nerd hacking. These types used savvy tricks and sophisticated business-like methods. Have you ever considered that friends you met gaming online could band together to become a criminal organization? Pretty wild

Warning for all users​

This piqued my curiosity: if these guys can steal $230 million, it raises the concern that smaller perpetrators can undoubtedly target users like you and me.

Reflect on the following:

• Is my cryptocurrency wallet secure?
• Do I thoroughly analyze every email or message?
• Am I safeguarding my accounts against hackers?

Sometimes we take for granted how quickly cyber-crime proliferates.

My thoughts​

To be honest, this seems like one of the biggest advancements in crypto-crime that I've seen. I can't deny that on some level, part of me thinks the deliberation was impressive, but it's still an enormous and terrifying crime.

A few observations:

• They met through gaming… that is somewhat surprising.
• They blended classic (to an extent) tactics (like fake companies) with new technology.
• A 10% service charge? It sounds more like a "service charge in the dark world."

I don't know about you, but I've sometimes pondered as to how many people ultimately get taken advantage of in these schemes.

The Bottom Line​

A man living in California admitted he assisted in laundering more than $25 million of stolen cryptocurrency from a total $230 million heist. The entire crew utilized mixer, fake companies, and wire transfers as methods to hide the money.