A Manhattan couple who recorded hip-hop songs about their jet-setting Wall Street lifestyle has been caught trying to launder a record $3.6 billion stolen from 2,000 bitcoin wallets, as reported by the NY Daily News. Their story is yet another example of the growing problem of cryptocurrency hacking, theft, and fraud.
The task of returning these funds to their owners is a challenging one. Fortunately for those who have lost money in this case, the culprits have been caught and are being prosecuted. However, in many other cases, those whose funds have been stolen and are sitting in an anonymous bitcoin wallet need bitcoin coin trace methods and a thorough bitcoin investigation to track their cryptocurrency on the blockchain.
MyChargeBack professionals provide solutions for people who have lost money to broker schemes and crypto fraud. MyChargeBack assists victims of cryptocurrency schemes in tracking down their funds on the blockchain. We offer a variety of services, including consultation case analysis. We also create intelligence reports that will provide law enforcement and crypto exchanges the complete picture and help convince them to pursue your case.
“Like Ghengis Khan but with More Pizzazz”
Ilya Lichtenstein, 34, and Heather Morgan, 31, though they lived the high life and aspired to become celebrities. Morgan, who in 2019 recorded a music video in Manhattan’s Financial District under the name of RazzleKhan. She said she chose the name because she was “like Ghengis Khan but with more pizzazz.”
However, the couple would eventually achieve a kind of fame but not the type they imagined. Lichtenstein and Morgan were taken in custody for conspiracy to launder bitcoin they allegedly stole from bitcoin wallets on the crypto platform BitFinex.
The couple used creative methods to gain access to bitcoin wallets and made over 2,000 unauthorized bitcoin transactions. With the money, they purchased $500 pre-paid debit cards and purchased gold and NFTs or non-fungible tokens. The total amount stolen is close to $4.5 billion and they attempted to launder $3.6 billion. The couple faces charges of fraud and conspiracy to launder money, which could carry a sentence of 25 years.
The Challenges in the Bitcoin Coin Trace Process
The case of this major theft by the Wall Street couple is hardly isolated. In fact, cryptocurrency hacking and schemes is becoming the fastest growing form of online fraud. The FBI has issued warnings to consumers about various types of cryptocurrency schemes and has been successful with bitcoin investigations and tracking down funds on the blockchain.
One reason there is so much cryptocurrency fraud is that cyber criminals consider the blockchain a place they can hide their ill-gotten gains in anonymous bitcoin wallets. Because there are no names connected to these wallets, they believe it will be harder to track them down and that they are immune from bitcoin investigations.
However, law enforcement and authorities are developing increasingly sophisticated coin tracking solutions and bitcoin crypto coin trace methods to uncover illegal activity on the blockchain. Assistant Attorney General Kenneth Polite told the New York Daily News, in connection to the BitFinex case “Federal law enforcement demonstrates once again that we can follow the money through the blockchain, and that we will not allow cryptocurrency to be a safe haven for money laundering or a zone of lawlessness within our financial system.”
How to Keep your Bitcoin Wallet Safe from Crypto Schemes
Some people are so concerned about crypto schemes that they choose to stay away from digital currencies entirely. There is no need to go to this extreme, particularly if you enjoy the convenience of cryptocurrencies. There are several ways to keep your bitcoin wallet safe from cyber criminals.
- Use only a large, well-known and regulated cryptocurrency exchange
All financial services should be regulated, and the same goes for cryptocurrency exchanges. However, even though digital currencies are not centrally regulated, working only with licensed platforms will give you oversight protection and will validate the service.
If you suspect you have been robbed of your cryptocurrency, you will have a regulator to file a complaint with. If the exchange fears losing their license or facing disciplinary action, they are more likely to take action against fraud on their exchange.
- Get a Hardware Bitcoin Wallet
A hardware Bitcoin wallet will keep your cryptocurrency safe and away from hackers who lurk on exchanges. Be sure to purchase the hardware bitcoin wallet straight from the manufacturer, not from a third-party seller.
- Try not to leave your cryptocurrency on the exchange for too long
Many exchanges fail to act quickly when there is hacking because it happens constantly and is hard to keep track of. If you deposit your crypto coins safely in a bitcoin wallet regularly, then you are less likely to get your coins stolen or at least can limit your losses if your wallet is hacked.
- Never give anyone your codes or keys
There are plenty of phishing schemes, especially on social media. Do not take the bait. You may befriend someone on Facebook who will then tell you that they need a loan or have an excellent bitcoin deal but require your information. Do not fall for these types of schemes, but keep your codes safe.
- Trade only with a regulated broker
Just as platforms should be regulated, the same is true for brokers. Avoid the temptation to take advantage of deals advertised on social media and that huge promise returns. Instead, open an account with a regulated broker if you want to trade cryptocurrencies.
- If something goes wrong, file a complaint and seek Bitcoin coin trace assistance
Don’t despair of getting your money back from an anonymous bitcoin wallet. Instead, contact MyChargeBack professionals, which uses specialized bitcoin coin trace technology, and launch bitcoin investigations to identify the bitcoin wallet that holds your funds.
MyChargeBack Will Help You Find Your Funds on the Blockchain
If you have lost money to a cryptocurrency scheme, seek fund recovery assistance immediately. Consult with MyChargeBack experts to get started. We have extensive knowledge and working relationships with regulators and more than 450 law enforcement agencies around the world, as well as the solutions that can improve your prospects of getting your cryptocurrency back.
