The infamous hacker responsible for one of the largest cryptocurrency heists in history has been sentenced to five years in a US prison. Ilya Lichtenstein, a 35-year-old US resident, was found guilty of hacking into Bitfinex, a major cryptocurrency exchange platform, back in 2016. Lichtenstein managed to steal a staggering 120,000 bitcoins during the hack, which was valued at $70 million at the time. However, the value of the stolen bitcoins skyrocketed to over $4.5 billion by the time he and his wife, Heather Rhiannon Morgan, were apprehended in February 2022. Today, the stolen bitcoins would be worth a whopping $10.7 billion.
Lichtenstein, a Russian-born entrepreneur and cryptocurrency investor, enlisted the help of his wife, Morgan, a US businesswoman and artist known as “Razzlekhan,” to launder the stolen funds. The couple successfully laundered approximately 21% of the stolen bitcoins, amounting to around $14 million at 2016 rates. Lichtenstein also utilized couriers he had met in Kazakhstan and Ukraine to smuggle the laundered money back into the US. Prosecutors described Lichtenstein’s money laundering techniques as the most complicated they had ever seen, spanning over half a decade.
Following their arrest in 2022, Lichtenstein immediately began cooperating with law enforcement and assisted in recovering over 96% of the stolen funds, most of which had not been spent. In August 2023, both Lichtenstein and Morgan pleaded guilty to one count of money laundering conspiracy. Prosecutors recommended a five-year prison sentence for Lichtenstein and 18 months for Morgan. During the sentencing hearing, US District Judge Colleen Kollar-Kotelly emphasized the meticulous planning involved in Lichtenstein’s theft and stressed the importance of imposing consequences for such crimes.
Lichtenstein expressed full responsibility for his actions during the sentencing hearing and requested that his wife not receive any prison time. Morgan’s sentencing hearing is scheduled for November 18. The case serves as a stark reminder that committing cybercrimes, especially in the realm of cryptocurrency, will not go unpunished. The repercussions of such actions can have far-reaching consequences, both financially and legally. As the digital landscape continues to evolve, law enforcement agencies are working diligently to combat cybercrimes and hold perpetrators accountable for their actions.