Ilya Lichtenstein, the convicted hacker associated with Bitfinex, has emerged as a significant government witness in the jury trial involving Roman Sterlingov, the alleged operator of crypto mixer Bitcoin Fog, as reported by Bloomberg News on Feb. 27.

Sterlingov was arrested and charged by US prosecutors in April 2021 for allegedly aiding in the laundering of 1.2 million BTC, valued at $335 million at the time, connected to illicit activities on the dark web. He is currently undergoing a jury trial for criminal charges.

Lichtenstein, along with his wife Heather Morgan, was arrested by authorities in February 2022. Lichtenstein pleaded guilty to the theft in August 2023 after being convicted. The couple was involved in a scheme to launder $4.5 billion in Bitcoin stolen from Bitfinex, starting in 2016.

Former criminal turned informant, Lichtenstein testified that he utilized Bitcoin Fog around ten times to launder a portion of the stolen funds before switching to another mixer called Helix. Both mixers were shut down by authorities in 2021, with Helix's creator also pleading guilty that year.

Lichtenstein revealed during his testimony that he primarily laundered money by depositing it into crypto exchange accounts obtained through identities purchased on the dark web. He clarified that he had no direct communication with Sterlingov and was unaware of his identity.

In his testimony, Lichtenstein disclosed that his decision to hack Bitfinex stemmed from business struggles and burnout. Sterlingov faces multiple charges, including money laundering and operating an unlicensed money-transmitting business, to which he has pleaded not guilty. His defense argues that there is insufficient evidence linking him to the crypto mixer.

As of Feb. 27, the trial is ongoing, and the jury has yet to reach a verdict.