Key Takeaways:
- Bitfinex exchange’s in-house token LEO pumped over 9% in the early hours of Feb. 15.
- The jump came in the wake of the publicity wave associated with alleged money-launderers, spouses Ilya Lichtenstein and Heather Morgan.
YEREVAN (CoinChapter.com) – UNUS SED LEO pumped 9% in the Asian-Pacific session on Feb 15 as traders assessed the ongoing development in the Bitfinex hack case.
The LEO/USD exchange rate shot to $6.25, possibly fueled by the heightened publicity around the exchange. In detail, the price has been mostly stagnant throughout the second half of 2021 and traded at approximately $3.00.
Also read: LEO token jumped 88% after DOJ seized $3.6B tied to Bitfinex hack of 2016.
However, after the Department of Justice (DOJ) announced it seized $3.6 billion out of the $4.5 billion stolen from Bitfinex, LEO exploded over 88% on Feb. 9. Later, the token corrected but still was up 26% from the point of the DOJ-led breakout.
LEO was issued in 2016 to refinance crypto exchange Bitfinex. In its original whitepaper explaining LEO, Bitfinex had promised that if they could recover the lost funds, they would use 80% of the proceeds to buy back and burn LEO. As a result, the token rallied on ‘supply crunch’ FOMO.
LEO sustained profits as Heather Morgan, one of the suspects of the money-laundering scheme associated with the Bitfinex hack in 2016, got a bail. However, Federal Judge Beryl A. Howell ordered pre-trial detention for her husband, Ilya Lichtenstein, a co-accused.
Judge Howell noted that Mr. Lichtenstein appeared to have significant motivation to flee, and might have resources to do so that investigators had overlooked. He will remain detained until the court hearing.
Bitfinex-related money laundering
As CoinChapter reported recently, the DOJ seized over $3.6 billion from Mr. Lichtenstein’s crypto wallet, linked to the stolen $4.5 billion. In detail, one of the biggest heists in crypto history wiped 119,754 Bitcoin (BTC) off the exchange through 2,000 unauthorized transactions in 2016. The stolen amount then landed on the crypto wallet that the DOJ was able to gain access to.
The investigation told the Judge that they had found no evidence the couple was involved in the theft. However, the DOJ presented an interconnected network of accounts through which the spouses allegedly laundered part of the funds.
Also read: Ilya Lichtenstein and Heather Morgan make headlines, as DOJ returns $3.6 billion stolen from Bitfinex.
As a result, the Feds charged Mr. Lichtenstein and Mrs. Morgan with “conspiracy to commit money laundering” and “conspiracy to defraud the United States”. They could face 25 years in prison in case of the maximal sentence.
