How Crypto Analytics Played a Major Role in Tracking Down $4 Billion Wall Street Scheme

By Evan Spicer

Director of Cryptocurrency Investigations

The infamous Wall Street couple, Ilya Lichtenstein and Heather Morgan, would not be named suspects in a hacking and money laundering case on the Bitfinex platform if it weren’t for effective crypto analytics and bitcoin forensics that revealed their identities. The Manhattan Couple are being charged with fraud and conspiracy to launder $3.6 billion which could result in a sentence of 25 years in prison. 

Increasingly, successful crypto tracing can lead to charges for those who thought they could hide behind an anonymous bitcoin wallet. Crypto coin trace strategies are the answer for customers who want to find out where their coins are, who holds them and how to bring them to justice. 

MyChargeBack professionals provide solutions for people who have lost money to broker schemes and crypto fraud. MyChargeBack assists victims of cryptocurrency schemes to track down their funds on the blockchain. We offer a variety of services, including consultation, case analysis and intelligence reports that will provide law enforcement and crypto exchanges the full picture and will help convince them to pursue your case. 

“The Wave of the Future, Dude”

U.S. Magistrate Judge Zia Faruqui called cryptocurrency software and crypto analytics used to nab the Manhattan fraudsters, “the wave of the future, Dude,” a reference to the iconic hippie character from the cult classic film, The Big Lebowski. 

Cultural references aside, this case was notable for many reasons. First of all, the $3.6 billion the couple attempted to launder, compared to the $4.5 billion they stole was an almost unprecedented amount. 

Secondly, the judge’s attitude towards crypto analytics and the presentation of blockchain activity into the courtroom to demonstrate the path of funds points to an upgrade in the judicial system and the increasing willingness and even eagerness to incorporate technology into hearings. 

Judge Faruqui revealed how a search warrant allowed officials to prevent illegal access to 100,000 crypto coins and to find the masterminds behind thefts of 2,000 bitcoin wallets. The judge credited advanced tools and techniques such as crypto analytics and coin tracking technology for successfully catching those responsible. 

What This Means for Crypto Users

Until very recently, there was a disconnect between the authorities, including law enforcement, the judicial system and regulators, and the blockchain. Police departments were just beginning upgrades that would enable them to tackle cybercrime, but tracking down bitcoin transactions on the blockchain would prove even more difficult. 

The result – consumers would try to file complaints with the police, only to be told that they were unable to help them without more information. However, regular users of cryptocurrency exchanges aren’t usually able to provide more information than what can be viewed on the blockchain as well as a few emails or text messages. 

Without the right technology and expertise, any attempts to investigate are hampered. Worse yet, claimants often find that when they approach a crypto exchange, nothing can be done without a police report, but if investigations with the police are stalled because of a lack of resources, nothing can go forward. 

Meanwhile, those who use the blockchain and anonymous bitcoin wallets for laundering money continue their activities in the belief that police and regulators are not on their trail. However, all of this is changing, and law enforcement and the judicial system is on board with crypto trace solutions. 

How Crypto Trace Solutions Can Help You Find Your Funds 

If your bitcoin wallet has been hacked or if you have lost money to a crypto fraud, do not give up. Efforts to track fund son the blockchain have had more success than ever before. The following are essential steps to find your crypto funds. 

Speak to Crypto Trace Professionals Immediately

Time is of the essence when it comes to tracking down funds on the blockchain. Money laundering can happen quite quickly through anonymous bitcoin wallets. Consult with MyChargeBack experts with details about what occurred. 

Provide Sufficient Information

If your case is accepted because it has a fair chance of success, you will be asked to provide more information. This may include documents, screenshots of communications, and any clues that may help the investigators track down the people behind the transactions. 

Understand the Process

Our team uses forensic crypto analytics, which is like regular analytics used to glean information data about who visits a site, but is instead applied to the blockchain. 

Analytics software analyzes, identifies and clusters information on the blockchain. It makes associations and can connect one user with another and show bitcoin transaction patterns that can identify the bitcoin wallet holders. 

Our team also uses human ingenuity bitcoin forensics methods to process the data and find out who is behind these transactions. We also consult information in our databases, which contain details from thousands of crypto investigations. 

Use an Investigation Report to Your Advantage

After we have completed the investigation, our clients will be presented with an intelligence report that can be submitted to law enforcement and crypto exchanges. Using the data we present, they can more efficiently launch an official inquiry and bring legal action against those responsible for stealing and laundering cryptocurrency. 

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.