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Bitfinex hacker
Bitfinex hacker

Cryptocurrency

A Bitfinex hacker received a five-year sentence for cryptocurrency theft and money laundering

Among those involved in the 2016 Bitfinex hack, Ilya Lichtenstein received a five-year jail sentence for his role in stealing and laundering more than $10 billion worth of Bitcoin. Heather Morgan, Lichtenstein’s wife, assisted in concealing the money and will face her sentence on November 18. The couple used complicated methods to hide the stolen goods, which got them caught in 2022.

The 2016 Bitfinex hack put Ilya Lichtenstein behind bars for five years. Lichtenstein was in charge of one of the biggest bitcoin thefts in history. They not only sentenced him to jail, but also mandated three years of supervision. Lichtenstein had pleaded guilty earlier this year to charges of money laundering conspiracy. At first, he was facing up to 20 years in jail. Prosecutors sought a reduced sentence due to his assistance in numerous investigations, including the discovery of stolen Bitcoin linked to the case.

The Bitfinex hack in 2016 stole 119,754 Bitcoins worth about $72 million. Due to the rise in Bitcoin’s price, the stolen goods are now worth more than $10 billion. Lichtenstein, who calls himself a computer expert, used complex methods to get into the exchange’s systems and send big amounts of Bitcoin. Despite these actions, prosecutors agreed that Lichtenstein had assisted with investigations, particularly in identifying other crypto criminals, leading to a lighter sentence.

Heather Morgan, Lichtenstein’s wife, helped him clean the stolen bitcoin. The court will sentence her on November 18. Morgan, who is known for her rap alter ego “Razzlekhan,” has pleaded guilty to conspiracy charges and could spend up to 10 years in jail. Morgan should get a lighter 18-month sentence because she played a smaller part in the plan, according to the prosecutors.

The couple employed various trades, dark web markets, and other methods to conceal the origin of the stolen money in their intricate money laundering schemes. Even though they tried to hide their activities, U.S. officials found them and arrested them in February 2022.

This is one of the most important criminal investigations involving cryptocurrencies. The stolen Bitcoin is the largest digital asset that the U.S. government has ever seized. The police are still searching for the stolen money and conducting investigations to recover it.

author avatar
Alex
Formally freelance blogger Alex is passionate writer with interest in Finance and Business, fascinated about crypto following news and covering stories.
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