United States prosecutors are proposing a shortened five-year sentence for Ilya Lichtenstein, the mastermind behind the 120,000 Bitcoin theft breach of 2016 Bitfinex. Investigators have advised a reduced sentence for Lichtenstein, who initially faced a possible 20-year jail sentence for conspiracy to commit money laundering, due to his cooperation with investigators and clean criminal background.
Originally valued at $71 million at the time of theft, the stolen Bitcoin now is valued at more than $8 billion due to a notable rise in its price. Although Lichtenstein laundered over 25,111 bitcoins, most of the stolen money was recovered, owing mostly to law enforcement actions rather than any guilt on his side. Despite efforts to wipe out damning information, investigators tracked the pilferers of stolen goods.
Prosecutors have also requested a reduced sentence for Heather Morgan, Lichtenstein’s wife, who played a crucial role in laundering the pilfers. Her help with the inquiry has resulted in an 18-month jail recommendation.
Despite praising Lichtenstein’s assistance with ongoing investigations, prosecutors emphasized that his actions constituted a new wave of cybercrime and demanded a severe penalty to deter future offenses. They also pointed out that Lichtenstein had already attempted various financial scams and had taken a significant amount of time to organize the hack.
Apart from the jail terms, prosecutors are advocating the restoration of confiscated assets, including 95,000 Bitcoin, 117,400 Bitcoin Cash, 117,400 Bitcoin Satoshi Vision, and 118,101 Bitcoin Gold, presently worth more than $6 billion. These assets are expected to be returned to Bitfinex as reparation for the pilfers.
While Morgan will face punishment the next day, ending one of the biggest crypto theft cases in history, Lichtenstein’s sentence is set for November 14.
