Popular Crypto Attorney Jonathan Levy Says Bithumb Hack Connected To BitBlender
Jonathan Levy, a lawyer from the Cryptocurrency Resolution Trust, predicted that the $32 million in cryptocurrency reported hacked from Bithumb Exchange was laundered through Bitblender.io.
Bitcoin Blender was launched in 2014, by an anonymous Bitcoin enthusiast and software developer. It has been around for several years, and it is likely one of the most popular mixers for the dark web. Bitblender claims to use smart technology to erase Bitcoin history and make transactions 100% anonymous in effect laundering Bitcoins. It is even possible that the hack was an inside job by Bithumb to generate funds or to avoid taxes. The funds therefore were likely recycled through Bitblender so their origins were obscured and then redeposited at Bithumb as a new cash infusion.
The Cryptocurrency Resolution Trust lawsuit against Bitblender (Cryptocurrency Resolution Trust v. Bitcoin Blender Organization), has been lodged with the Supreme Court of the British Indian Ocean Territory (BIOT) which the Trust asserts has jurisdiction over the .io domain. The .io is the domain of choice not just for crypto currency and ICOs but also HYIPs, scams, and Ponzi schemes due to the lax rule of law by the British authorities.
This is not the first time Levy has accused BitBlender of laundering money to criminals. Earlier this month when CoinRail was hacked, Levy had said that BitBlender had laundered the stolen cryptocurrencies, making the detection of currencies impossible. In a rasping voice he added, “Bitblender openly launders Bitcoins for criminals using the .io domain as its only public address. Bitblender concluded that since Indian Ocean Territory consists only of a secret US leased military base, they could operate with impunity. However, BIOT has a court system and we aim to achieve justice. This is the tip of the iceberg, the value of all the Bitcoins laundered by Bitblender since 2013 must be immense.”