A US court has sentenced a hacker involved in one of the largest cryptocurrency thefts in history, Ilya Lichtenstein, to five years in prison for laundering funds stolen during the 2016 Bitfinex hack.
The theft involved nearly 120,000 bitcoins, initially valued at $70 million but worth over $4.5 billion at the time of Lichtenstein’s arrest in February 2022.
Lichtenstein pleaded guilty last year to his role in laundering the stolen cryptocurrency, a crime he committed with the help of his wife, Heather Morgan, a self-styled rapper who went by the alias “Razzlekhan.”
The case also saw the US Department of Justice recover $3.6 billion of the stolen assets, marking the largest financial seizure in the agency’s history.
According to court documents, Lichtenstein used advanced hacking techniques to breach the Bitfinex cryptocurrency exchange in 2016.
After gaining access, he enlisted Morgan to help launder the funds. The couple employed several sophisticated techniques to obscure the money trail.
The funds were moved across multiple platforms, with Lichtenstein reportedly meeting couriers during family trips to transport the laundered money discreetly.
District Judge Colleen Kollar-Kotelly emphasized the need to deter cybercrime during sentencing, stating, “It’s important to send a message that you can’t commit these crimes with impunity, that there are consequences to them.”
Lichtenstein, who has been in custody since his arrest, expressed remorse for his actions and revealed his intention to use his technical skills to combat cybercrime after serving his sentence.
Heather Morgan, who also pleaded guilty to conspiracy to commit money laundering, is scheduled to be sentenced on November 18.
