As a seasoned analyst with over two decades of experience in financial crime and cybersecurity, I have witnessed the evolution of digital currencies and their associated ecosystems. The past year, 2024, was a pivotal one for the cryptocurrency industry, marked by an all-time high price for Bitcoin and the end of many criminal cases against high-profile figures in the sector.
Having followed the rise and fall of numerous digital asset platforms and their executives, I must admit that the story of FTX and its leaders, Sam Bankman-Fried, Caroline Ellison, and Ryan Saboth, struck a chord with me. The rapid downfall of one of the most prominent exchanges in the world is a stark reminder of the risks inherent in the industry and the consequences of negligence or outright fraud.
The sentencing of Bankman-Fried to 25 years in prison, Ellison to two years, and Saboth to seven-and-a-half years is a testament to the severity of their actions and the determination of authorities to hold wrongdoers accountable. As I reflect on my professional journey, I can’t help but draw parallels between these cases and the lessons I’ve learned from past financial crimes, underscoring the importance of transparency, due diligence, and regulatory compliance in this burgeoning field.
Roman Storm, co-founder of Tornado Cash, is another figure whose story caught my attention. His case serves as a cautionary tale about the potential dangers of anonymity and the need for vigilance when dealing with unregulated digital assets. The ongoing legal battles of his colleague, Alexey Pertsev, in the Netherlands, further emphasize the global nature of these issues.
The arrest and sentencing of David Carmona, founder of IcomTech, and his associates serve as a reminder that even the most sophisticated Ponzi schemes cannot escape justice forever. The sentences handed down to these individuals demonstrate that no one is above the law, regardless of their influence or position in the digital asset world.
The case of Ilya Lichtenstein and Heather Morgan, the husband-and-wife team behind the laundering of millions of dollars worth of Bitcoin from the 2016 hack of Bitfinex, is another example of the long arm of the law reaching even the highest echelons of the digital asset world. The fact that Lichtenstein remains in custody while Morgan awaits her prison sentence underscores the gravity of their actions and the ongoing efforts to bring justice to light.
Finally, the potential release of Silk Road founder Ross Ulbricht in 2025, following President-elect Donald Trump’s promise to commute his sentence, raises interesting questions about the role of politics in financial crimes and the balance between punishment and redemption. As I continue my career, I can’t help but chuckle at the irony: perhaps one day, Ulbricht will be known as “crypto’s most successful felon turned politician.” After all, in this ever-changing world of digital assets, anything is possible!
2024 saw Bitcoin reach its peak price exceeding $100,000, but it also signified the conclusion of numerous criminal proceedings against prominent figures in the crypto industry and fraudsters.
FTX and Alameda executives
At the peak of its success, FTX stood as one of the leading global cryptocurrency trading platforms, amassing millions of users across numerous nations. However, within just a few days in November 2022, things took an unexpected turn when the company announced liquidity issues and subsequently filed for bankruptcy.
Following an extended extradition procedure from the Bahamas, Sam Bankman-Fried, the former CEO of FTX, was transferred into U.S. custody and initially granted release on bond. However, he was subsequently detained in a correctional facility after a federal judge rescinded his bail in August 2023, before his criminal trial, conviction, and sentencing.
Following the judge’s verdict of a 25-year sentence for Bankman-Fried, he was transferred to the Metropolitan Detention Center in Brooklyn to help with his appeal process. On January 1, 2025, SBF began spending New Year’s Day behind bars as a convicted felon, and he is not the only one incarcerated in this manner.
Sam Bankman-Fried’s former girlfriend, Caroline Ellison who used to lead Alameda Research, and Ryan Saboth, a previous co-CEO of FTX Digital Markets, admitted guilt for fraud connected to the downfall of the cryptocurrency exchange. They were given sentences of two years and seven-and-a-half years, respectively; however, Sam’s expected release date from prison is 2031 as per the US Bureau of Prisons.
Ellison spent her New Year’s holiday at the Federal Correctional Institution in Danbury, Connecticut, where both male and female prisoners are housed. Before reporting to prison on October 11, Salame updated his LinkedIn profile to reflect that he was commencing a new role as an inmate at the Federal Correctional Institution in Cumberland.
Tornado Cash developers
About a year following the US Treasury’s decision to blacklist cryptocurrency tumbler Tornado Cash, I found myself reading about the arrest of its co-founder, Roman Storm, on allegations of money laundering.
Storm has been released on bail prior to his trial scheduled for April 2025, which means he didn’t spend his vacation behind bars. On the other hand, Roman Semenov, a colleague, was not in custody and was listed among the FBI’s most wanted individuals as of publication date.
In contrast, a comparable criminal case in the Netherlands presents a distinct narrative. Back in 2022, Dutch authorities apprehended Alexey Pertsev, one of the founders of a cryptocurrency mixing service along with Storm and Semenov, on charges of money laundering.
In May 2024, Pertsev’s legal case progressed, leading to a guilty verdict and a prison sentence exceeding five years. As of January 2025, he is still in custody, with his legal team preparing an appeal for his conviction and sentence.
IcomTech promoters
David Carmona, the creator of the cryptocurrency Ponzi scheme known as IcomTech, was arrested in the U.S. in 2022 and has been detained since then. In 2024, he was given a 10-year prison sentence by a federal judge.
Although there had been suggestions for him to serve his sentence in a prison near New York, records from the Bureau of Prisons indicated that Carmona was actually incarcerated at the Federal Correctional Institution in Ashland, Kentucky, by December.
Among the initial group from IcomTech, Carmona was one of the first to celebrate the New Year behind bars. Two key figures associated with the project, Gustavo Rodriguez and David Brend, were also found guilty for their parts in the scheme. A judge assigned Rodriguez a sentence of eight years in prison, whereas Brend received a 10-year term. On December 16th, Brend reported to the Federal Prison Camp located in Pensacola, Florida.
Bitfinex money launderers
Ilya Lichtenstein and his spouse, Heather Morgan, who were involved in laundering large amounts of Bitcoin stemming from the 2016 hack of the cryptocurrency platform Bitfinex, have now received prison sentences.
The judge handed down a sentence of 18 months for Morgan, who’s also recognized by her stage name Razzlekhan. She is set to begin serving her time at the facility on January 24th. Since her court appearance, she has persisted in posting on social media, where she brands herself as “the favorite felon of cryptocurrency” and solicits donations.
2022 saw Lichtenstein handed over to the care of the Attorney General’s office, where he was placed in a correctional facility, ideally segregated as much as possible, from individuals who are currently on trial, serving sentences, or awaiting appeals.
According to the Bureau of Prisons’ website, he wasn’t held in any federal prison when the information was published. However, a court document hinted that he might still be in detention.
Last New Year’s in prison?
It’s possible that one of the most well-known figures connected to crypto-related crimes could be freed in 2025 following Donald Trump’s inauguration as President, given his pledge during his campaign to grant clemency to Ross Ulbricht, the founder of Silk Road, who is serving a life sentence at a federal prison in Tucson.
During Trump’s first term, some cryptocurrency users pondered whether President Trump would grant clemency to Ulbricht, who was already serving a prison sentence. Ulbricht had been given a life sentence in 2015 for crimes including money laundering, computer hacking, and conspiring to distribute illegal drugs.
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2025-01-02 19:08