Cybersecurity

Bitcoin Scam Ends in Jail as Immigrant's American Dream Fades

  • Yuri Lebedev was convicted in March of fraud for his role
  • Coin.mx was used by hacking group in laundering money
Photographer: Chris Ratcliffe/Bloomberg
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A Florida software engineer who came to the U.S. from Ukraine as a teenager seeking the American dream was sentenced to 16 months in prison for his role in building an illegal bitcoin exchange -- one that allegedly laundered money for a global hacking ring.

Yuri Lebedev, 39, was the technology guru behind Coin.mx, which tricked banks into processing bitcoin transactions by disguising them as restaurant-delivery charges and online purchases of collectible items. Lebedev was convicted in March of conspiracy and fraud following a monthlong trial in Manhattan.