Table of contents
- A high-tech investigation
- Fake documents and deepfake technology
- A multimillion-dollar hacker attack
- Chain-hopping to obfuscate funds
- Blockchain tracking and wallet seizure
A high-tech investigation
In the heart of Milan, an investigation conducted by the Italian Financial Police (Guardia di Finanza) led to the seizure of a digital wallet worth over $9 million, allegedly at the center of a sophisticated cryptocurrency laundering scheme.
The operation was coordinated by the Special Currency Police Unit and the Privacy and Cyberfraud Protection Unit, under the direction of the Milan Public Prosecutor’s Office.
Fake documents and deepfake technology
According to the investigators, the wallet was created using fake identities and deepfake software, tools that produce realistic forged documents or videos. The account was opened on a registered exchange operating legally in Italy, which has been cleared of any wrongdoing and cooperated fully with the authorities.
A multimillion-dollar hacker attack
The authorities linked the wallet to a major hacker attack, during which tens of millions of euros in crypto assets were fraudulently stolen. Previously inactive, the wallet suddenly recorded deposits of over 9 million USDT (Tether) within minutes of the attack.
Chain-hopping to obfuscate funds
Soon after the deposits, more than 8 million USDT were quickly converted into Bitcoin, Terra Classic, Ethereum, and other digital assets using chain-hopping a tactic that involves rapid swapping between different cryptocurrencies to make tracking difficult.
Blockchain tracking and wallet seizure
Using blockchain analysis tools, investigators tracked suspicious transactions and identified the likely illicit origin of the funds. The seizure was authorized by the Judge for Preliminary Investigations (GIP) of the Milan Court as a precautionary measure to prevent further dispersion of assets.
Frequently asked questions
- What is a digital wallet?
A digital wallet stores cryptocurrencies and allows users to send and receive them. - What does chain-hopping mean?
It refers to swapping between different cryptocurrencies in quick succession to obscure the source of funds. - What are deepfakes?
AI-generated fake images, videos, or documents that appear real. - How was the wallet discovered?
Through investigations and blockchain transaction tracing by the financial police. - Which cryptocurrencies were involved?
Tether (USDT), Bitcoin, Ethereum, and Terra Classic. - Was the exchange involved in the crime?
No, it cooperated with investigators and is not under suspicion. - How much was seized?
Over $9 million in crypto assets. - How did blockchain help?
It allowed authorities to trace suspicious transactions and link them to criminal activity. - Was the wallet directly linked to the hackers?
According to prosecutors, it was integral to laundering the stolen funds. - Have the stolen crypto funds been recovered?
Partially, through the wallet seizure.
