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Mastermind Behind Bitfinex Hack Gets 5-Year Prison Sentence

Key Takeaways

  • Ilya Lichtenstein received five years in prison for the massive 2016 Bitfinex Bitcoin hack;
  • Heather Morgan, his wife, awaits sentencing for her minor role in laundering the stolen cryptocurrency;
  • Both cooperated with authorities, leading to reduced sentencing recommendations.
Mastermind Behind Bitfinex Hack Gets 5-Year Prison Sentence

Ilya Lichtenstein, the individual responsible for the notorious 2016 Bitfinex $161.82M cryptocurrency exchange hack, has been handed a five-year prison term.

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 $98,232.27 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.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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