Mastermind Behind Bitfinex Hack Gets 5-Year Prison Sentence

This sentencing, delivered by Judge Colleen Kollar-Kotelly in Washington, DC, occurred on November 14. Lichtenstein had previously admitted guilt to charges of conspiring to launder money during an August 2023 plea deal.

Prosecutors recommended the lighter punishment, citing his lack of a prior criminal record, his cooperative efforts in assisting other investigations, and the limited success of his laundering operation. Of the 119,754 Bitcoin BTC $83,763.52 stolen—now valued at more than $10.4 billion—only 25,111 BTC was successfully laundered.

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Lichtenstein's wife, Heather Morgan, known in some circles by her rapper persona “Razzlekhan,” is scheduled for sentencing on November 18. She confessed to aiding her husband laundering the stolen cryptocurrency after their arrests in February 2022.

Her charges include conspiracy to commit money laundering and defrauding the US, which carry a potential sentence of up to 10 years. However, prosecutors have recommended a comparatively lenient term of 18 months.

Prosecutors described Morgan's role as minor compared to Lichtenstein’s. Initially unaware of the origin of the Bitcoin stash, she learned of its connection to the Bitfinex hack three years after the theft.

In other news, a global crypto heist has uncovered $73 million laundered through a network of fake companies. How was this scheme exposed? Read the full story.