“The Wave of the Future” — Crypto Analytics Retrieves $4 Billion from Wall Street Bitcoin Laundering

By Markus David

Direcor of Professional Services

A record-breaking money laundering operation carried out by two self-proclaimed Wall Street celebrities was nabbed thanks to crypto analytics. This case demonstrates how technology is catching up to police the blockchain, a place which often resembles the Wild Wild West without a sheriff. 

Heather Morgan and Ilya Lichtenstein received a total of $4.5 billion from hackers who robbed 1,000 bitcoin from users on BitFinex and then attempted to launder $3.6 billion of it through $500 one-time-use cards, and purchases NFTs, or non-fungible tokens and other luxury items.

Rather than keeping a low-profile, Heather Morgan often boasted about her wealth and considered herself a Wall Street investor, CEO and rapper with a few singles to her name. However, law enforcement and crypto trace agencies were on the couple’s trail and managed to track down the stolen funds through crypto trace technology. 

If you are looking for cointracking services, 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 we also create intelligence reports that will provide law enforcement and crypto exchanges the full picture and will help convince them to pursue your case. 

Unlocking the Anonymity of the Blockchain with Crypto Trace Technology

Those who pursue illegal activities on the blockchain often assume that they can hide behind what they believe is an anonymous bitcoin wallet. However, increasingly these crypto schemes are tracked down through specialized software, bitcoin forensics techniques and cooperation with law enforcement and crypto exchanges. 

The judicial system is taking notice. “It’s the wave of the future, dude, exclaimed U.S. Magistrate Judge Zia Faruqui, referring to “The Dude,” the hippie character in the cult classic film, The Big Lebowski. 

Images of the path of the funds through the blockchain derived from investigation reports were presented in court as evidence and were an essential tool for identifying the funds and retrieving them. 

Crypto Analytics: The Game Changer for Tracking Down Anonymous Bitcoin Wallets

One of the reason for the large number of fraudulent activities on the blockchain is that people think they can get away with absconding with funds as long as the bitcoin wallets do not have their names or identifying information. The lack of regulation on the blockchain can lead cyber criminals into a false sense of security. 

However, the game is changing for crypto consumers and is working in their favor, thanks to crypto analytics and software designed to trace crypto transactions and unveil the identities behind bitcoin wallets. 

Crypto analytics works much like data analytics on websites and reveals information about activity that can create a detailed picture of the user. For instance, a company can chart its progress by using analytics to indicate which location the site is attracting visitors, how many are landing, how much time they spend on the site, and what they do on the site. 

The fact that every bitcoin transaction on the blockchain can be viewed publicly is an advantage, and crypto analytics and crypto trace software goes farther and uses a method called “clustering,” which shows patterns between bitcoin wallets and can indicate a relationship. 

This is important because money laundering on the blockchain is often performed through the same bitcoin wallets, which act as mules in the laundering process. Clustering can reveal patterns of related activity to give important clues as to who owns the pseudo-anonymous bitcoin wallets and where they are located. 

If you have lost money through a bitcoin transaction, hacking or a fraudulent scheme, MyChargeBack experts will apply crypto trace technology and methods to locate your lost 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.