US accuses "red admin" WEX of hacking Mt.Gox
Date: 2023-06-09 Categories: IN WORLD
Around September 2011, Bilyuchenko, Werner, and their co-conspirators allegedly gained unauthorized access to a Japanese server that stored cryptocurrency wallets for Mt.Gox clients, according to an indictment by the U.S. Attorney's Office for the Southern District of New York. From that period until May 2014, they withdrew at least 647,000 BTC from the exchange to addresses under their control on two trading platforms.
In order to launder funds, around April 2012, the defendants allegedly entered into a fraudulent advertising contract with a New York-based bitcoin broker. Prosecutors believe they used it to make a series of large bank transfers worth about $6.6 million to offshore accounts, including shell corporations they control.
“In exchange for the provision of services, the New York bitcoin broker allegedly received some kind of “loan” on the BTC-e cryptocurrency exchange, which was created with funds stolen from Mt.Gox. Through it, Bilyuchenko and his accomplices laundered more than 300,000 BTC,” the ministry said.
In addition, the prosecutor's office for the Northern District of California accused Bilyuchenko of conspiring with the alleged co-owner of BTC-e Alexander Vinnik to manage this platform from 2011 until its closure in 2017.
The agency said the exchange was not licensed to provide money services, was used for money laundering, and handled "billions of dollars" in criminal proceeds from hackers, ransomware operators, scammers, drug dealers and corrupt government officials.
