Bitcon hacks and the laundering of the stolen Bitcoin are a stark reminder that not everyone in Bitcoin is here with the best intentions. Many people I know lost Bitcoin in the MtGox hack. WizSec Bitcoin Research wrote an interesting thread on twitter giving an update on Alexander Vinnik’s extradition to the US. This is a significant event and will hopefully lead to more information on how the stolen Bitcoin was laundered through different exchanges.
We have unpacked @wizsecurity’s twitter thread to make it easy for you to read.
Alexander Vinnik, who laundered hundreds of thousands of bitcoin stolen from MtGox, Bitcoinica and other entities through BTC-e and various other exchanges, has after years of legal wrangling been extradited to the US.
It remains to be seen if further information about these thefts will now get revealed in US courts, or if the US government has other priorities in mind for Vinnik, who was arrested in Greece in 2017 for his role in running the BTC-e exchange to facilitate money laundering.
Bitcoins stolen in some of the most well-known historical thefts were largely moved and sold through the same channels, in which Vinnik had a key role. Most of the coins went through the BTC-e exchange, as well as other exchange accounts owned by Vinnik.
While it's unlikely Vinnik was personally involved with the bitcoin thefts directly, as a key player in the handling and selling of the stolen coins he would likely be able to shed light on the business arrangement he had with the hackers.
More info:
A talk I did on the many thefts of MtGox back in 2017:
Occasional related research posts: blog.wizsec.jp
(Hopefully one day I'll be able to release a more comprehensive report.)
WizSecThe official blog of WizSec, a group of bitcoin security specialists, and their investigation into MtGox. https://blog.wizsec.jp
Follow @WizSec on twitter.
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