zlacker

>>mikeyo+(OP)
The statement of facts is linked to from the press release, and describes generally how the Feds were able to trace the stolen funds (they found a file listing private keys, after gaining access to the suspect's cloud storage) https://www.justice.gov/opa/press-release/file/1470186/downl...

> The 2017 transfers notwithstanding, the majority of the stolen funds remained in Wallet 1CGA4s from August 2016 until January 31, 2022. On January 31, 2022, law enforcement gained access to Wallet 1CGA4s by decrypting a file saved to LICHTENSTEIN’s cloud storage account, which had been obtained pursuant to a search warrant. The file contained a list of 2,000 virtual currency addresses, along with corresponding private keys.

> ...The connection among the VCE 1 accounts was further confirmed upon reviewing a spreadsheet saved to LICHTENSTEIN’s cloud storage account. The spreadsheet included the log-in information for accounts at various virtual currency exchanges and a notation regarding the status of the accounts

> ...Lichtenstein Email 2 was held at a U.S.-based provider that offered email as well as cloud storage services, among other products. In 2021, agents obtained a copy of the contents of the cloud storage account pursuant to a search warrant. Upon reviewing the contents of the account, agents confirmed that the account was used by LICHTENSTEIN. However, a significant portion of the files were encrypted

>>danso+T4
> they found a file listing private keys, after gaining access to the suspect's cloud storage

That's backwards. It's how they wrapped it all up. The real trail is pretty clearly AlphaBay 2016/2017 transactions (under gov control around that timeframe), to KYC-flagged accounts at an exchange, with a web of accounts with real info linked together past there.

>>tyrfin+yr
If he instead started to draw NFTs, and sell it from his KYC account to his dirty wallet, could he still be convicted? What if only one out of every 100 NFTs his dirty wallet purchased was from his KYC account?

Or what if he decided to create his own crypto-currency and it just so happened that his dirty wallet was an early investor of ETH to his fund.

Seems like he could have done more to distance himself.

>>cobook+RE
> Seems like he could have done more to distance himself.

On a value system with an inherently public ledger that eventually has to hit a fiat off ramp with KYC/AML requirements? Nah. Everyone has quality opsec until they don't, and the record of your criminal activity is immutable and highly durable.

>>toomuc+xQ
You can just sell the bitcoin for monero, then sell the monero for btc.

also, as time goes on, the proportion of btc that are "dirty" approaches 1, so these chainalysis strategies become less effective, assuming you aren't stupid enough to do some criminal act then cash out at a kyc exchange the next day from the same wallet

>>voldac+ij1
But are there any exchanges that swap btc for monero or eth that don’t have KYC requirements? Seems like it’d need to be off-chain somewhat, unlike uniswap.

>>judge2+em1
There are plenty that'd swap bitcoin (BTC) for litecoin (LTC) without KYC despite the fact that LTC can now do private transactions via MWEB. As networks integrate private Tx support, breaking the visible chain is going to be getting easier and easier.