Hacker behind $4.5 billion bitfinex theft sentenced to five years in prison

A hacker who laundered the proceeds from one of the largest cryptocurrency thefts in U.S. history has been sentenced to five years in prison. Ilya Lichtenstein pleaded guilty last year to stealing approximately 120,000 Bitcoin from the Bitfinex exchange in 2016.

He laundered the stolen funds with the help of his wife, Heather Morgan, who promoted hip-hop music under the alias Razzlekhan.

At the time of the theft, the Bitcoin was valued at around $70 million, but by the time of their arrest, its worth had surged to over $4.5 billion.

In a statement at the time, Deputy Attorney General Lisa Monaco noted that the seizure of $3.6 billion in assets in the case represented the largest financial forfeiture in U.S. Department of Justice history.

District Judge Colleen Kollar-Kotelly emphasized the importance of sending the message that "you cannot commit these crimes without consequences."

Lichtenstein, who has been in custody since his arrest in February 2022, expressed remorse for his actions and said he hoped to use his skills in the fight against cybercrime after serving his sentence.

Morgan, who also pleaded guilty to money laundering conspiracy charges last year, will have her sentencing on November 18.

Court documents reveal that Lichtenstein used advanced hacking tools and techniques to breach Bitfinex and subsequently sought Morgan's help to launder the stolen funds.

The U.S. Department of Justice (DoJ) stated that numerous complex money laundering methods were used, including creating fake identities, converting the stolen funds into different cryptocurrencies, and purchasing gold.

Prosecutors also said that Lichtenstein, originally from Russia and raised in the U.S., met with couriers during family trips and brought the laundered money back to his home country.