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US Seeks 5-Year Sentence for Ilya Lichtenstein, Orchestrator of $6B Bitfinex Hack

US Seeks 5-Year Sentence for Ilya Lichtenstein, Orchestrator of $6B Bitfinex Hack

CryptoNewsCryptoNews2024/10/16 08:39
By:Shalini Nagarajan

Prosecutors contend that Ilya Lichtenstein deserves a longer sentence than his wife, Heather Morgan, for their roles in the Bitfinex hack.

Last updated:
October 16, 2024 01:28 EDT

US prosecutors urged a judge to sentence Ilya Lichtenstein, mastermind of the $6b Bitfinex hack, to five years in prison for his role in a money-laundering conspiracy.

In addition to the five-year term, they also recommended three years of supervised release, according to a court filing on Tuesday. This means that the person, while out of prison, remains under the watchful eye of the criminal justice system.

Prosecutors argued that Lichtenstein, who pleaded guilty last year , deserves a longer prison sentence than his wife and accomplice, Heather Morgan. Last week, they recommended an 18-month sentence for Morgan, also known as the “Crocodile of Wall Street.”

Bitfinex Hack Duo Plead Guilty, Await November Sentencing

Lichtenstein led the 2016 Bitfinex hack, stealing about 120,000 Bitcoin with his wife, Morgan. Initially worth $71m, the stolen Bitcoin’s value soared as prices surged, marking it among the largest crypto thefts ever.

Lichtenstein allegedly used advanced laundering tactics to obscure the stolen funds. He created fake identities for online accounts, automated transactions and channeled money through dark web markets like AlphaBay and Hydra. He also swapped Bitcoin for other cryptocurrencies, used mixing services like Bitcoin Fog for anonymity, and converted some funds into gold coins, which he physically hid.

Lichtenstein pleaded guilty to conspiring to launder money, while Morgan admitted to conspiracy charges related to money laundering and defrauding the US. Lichtenstein’s sentencing is slated for Nov. 14, with Morgan’s following on Nov. 15.

Amazon’s Upcoming Film Based on Bitfinex Hack Money Laundering

Amazon’s production arm is currently in the works to produce a film titled “Razzlekhan,” inspired by the couple’s actions. The screenplay is influenced by a 2022 New York Times article that outlined the duo’s involvement in laundering proceeds from the Bitfinex hack.

Prosecutors opted against seeking the maximum sentence for Lichtenstein, citing his cooperation in other legal cases. Earlier this year, he testified as a witness for the federal government in the Bitcoin Fog trial.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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