The hacker behind one of many largest cryptocurrency heists in historical past will spend 5 years in a US jail.
US resident Ilya Lichtenstein, 35, was sentenced on November 14 to 5 years in jail after he hacked into Bitfinex, one of many largest cryptocurrency trade platforms, in 2016. Lichtenstein stole 120,000 bitcoins and began laundering the cash along with his spouse, Heather Rhiannon Morgan.
The heist was value $70m on the time of the hack however had risen to greater than $4.5bn by the point they had been arrested in February 2022. It might be value $10.7bn at as we speak’s present price.
Profitable Crypto-Laundering Scheme
Lichtenstein is a Russian-born entrepreneur and cryptocurrency investor who grew up in Chicago.
Morgan is a US businesswoman and artist who performs rap songs below the pseudonym “Razzlekhan.”
Round 2016, the couple had been residing in San Francisco.
After Lichtenstein hacked Bitfinex, a Hong Kong-based crypto trade, he solicited Morgan to assist in laundering the proceeds “with out explaining precisely what he was doing,” in response to prosecutors. The couple efficiently laundered about 21% of the stolen funds, which amounted to roughly $14m at 2016 charges. He instructed her concerning the theft in 2019.
This led prosecutors to say that Morgan “was definitely a prepared participant and bears full accountability for her actions, however she was a lower-level participant.”
Lichtenstein additionally obtained the assistance of couriers he met throughout journeys to Kazakhstan and Ukraine, to smuggle laundered a refund into the US.
“Over half a decade, the defendant engaged in what Inside Income Service (IRS) brokers described as essentially the most sophisticated cash laundering methods that they had seen to this point,” prosecutors wrote.
The couple had been arrested in 2022, after they lived in New York. Lichtenstein has been in jail ever since.
Learn extra about police motion towards crypto-laundering schemes: German Police Shutter 47 Legal Crypto Exchanges
96% of Stolen Bitcoins Recovered
After his arrest, Lichtenstein instantly began cooperating with regulation enforcement, serving to them with different cybercrime investigations.
He and Morgan pleaded responsible to 1 depend of cash laundering conspiracy in August 2023.
Prosecutors really useful 5 years in jail for Lichtenstein and 18 months for Morgan.
Lichtenstein additionally helped recuperate over 96% of the stolen funds, stated protection legal professional Samson Enzer. Most of it had by no means been spent.
Throughout the sentencing listening to, US District Choose Colleen Kollar-Kotelly instructed Lichtenstein that his theft was “meticulously deliberate” and that it was “necessary to ship a message you can’t commit these crimes with impunity, that there are penalties to them.”
Lichtenstein stated he takes full accountability for his acts however requested that his spouse not be sentenced to any jail time.
Morgan’s sentencing listening to is scheduled for November 18.
Picture credit score: 24K-Manufacturing/Shutterstock
