Bitcoin News

Story: Inmate Already Doing 111 Months Charged Over $290,000 Stolen from Seized Kraken Account

By Evie Vavasseur

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How the Funds Moved Through Exchanges and Mixers. The mechanics here matter. Mixing services — sometimes called tumblers — work by blending one…

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A Government-Controlled Account That Wasn't Locked Down. The Kraken account at the center of this had been restrained following a prior forfeiture order.

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What Prosecutors Are Focused On Now. Ongoing investigation. That's the phrase that keeps appearing in federal filings like this, and it…

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Federal prosecutors have charged a prison inmate with moving roughly $290,000 in cryptocurrency that had already been forfeited to the U.S. government.

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According to the indictment, the money passed through multiple exchanges, at least one mixing service, and a foreign bank before anyone flagged what was happening.

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Not a simple wire transfer. Not a clerical error.

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The mechanics here matter. Mixing services — sometimes called tumblers — work by blending one user's crypto with funds from other wallets, making it extremely hard for…

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The cryptocurrency went through several layers: first out of the Kraken account, then across exchanges, then through the mixing service, and eventually into a foreign bank.

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The indictment doesn't specify exactly how the inmate initiated the transfer from inside a prison.

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No accomplices have been publicly named yet.

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More context: Marc Andreessen Tapped to Co-Lead Fed AI Task Force Under Chair Kevin Warsh

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Crypto seizures have grown into a massive part of federal law enforcement over the past decade.

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Seems like that's roughly what happened here. Or at least that's what prosecutors allege.

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The inmate's defense hasn't commented publicly on the charges. No statement, no pushback on the indictment — at least not yet.

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Ongoing investigation. That's the phrase that keeps appearing in federal filings like this, and it basically means prosecutors think there's more to find.

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