zlacker

>>mikeyo+(OP)
> “After the execution of court-authorized search warrants of online accounts controlled by Lichtenstein and Morgan, special agents obtained access to files within an online account controlled by Lichtenstein,” the press release said. “Those files contained the private keys required to access the digital wallet that directly received the funds stolen from Bitfinex, and allowed special agents to lawfully seize and recover more than 94,000 bitcoin that had been stolen from Bitfinex. The recovered bitcoin was valued at over $3.6 billion at the time of seizure.”

So most likely,

1) they didn't launder it properly, leading to police being able to trace it to their bank accounts. I wonder if tornado.cash was used.

2) then police had their names, leading to warrants for all online accounts - google account, apple account, etc.

3) they made the big blunder of keeping their private keys in their online account. Most likely a txt file in google drive. That is such a silly blunder. Without the private keys, the police has zero proof of anything. They could have made a hundred excuses for how they got money in their bank account, as long as the police didn't have the private keys. Who keeps their private keys in an online account?

Apparently the biggest criminals make too many silly mistakes. The old saying applies here: "you don't have to be smart, just don't be an idiot"

>>Alexan+Ub
Well, the police had a search warrant, so the police could have found them if they had had them in their possession anyway.

Sure, they could have destroyed them, losing the money but maybe not getting arrested?

>>tsimio+zf
Keys are conspicuously easy to hide. My PGP master key that I've been using for some time is hidden on two devices which would be difficult to identify much less locate and are encrypted as well.

>>kodah+Jg
They're easy to hide as long as the federal government isn't trying to tie you to 4.5 billion worth of something.

>>pavel_+ji
Even with the fervor of the federal government they'd be easy to hide.

A USB is tiny, and you can shrink it's footprint with USB-C. You can also buy USB keys with tamper-proof housings that will blow a fuse if opened to be physically compromised. Coupled with strong post-quantum crypto, that key is relatively secure, even if physically discovered.

That's just the technical bit. You can also split the key in half and transfer the other half somewhere, which creates legal protection. You could also create a housing for the key so it's not easily discoverable.

If all that sounds a bit extra, circle back to that the perpetrator has 4.5 Billion worth of something.

>>kodah+wj
> If all that sounds a bit extra, circle back to that the perpetrator has 4.5 Billion worth of something.

It does sound like a lot of work. I think I'd go with the $5 wrench option.