Ilya Lichtenstein, the mastermind behind the 2016 Bitfinex Bitcoin hack, has been sentenced to five years in prison. The Washington, DC court issued the sentence on November 14, following his August guilty plea for conspiracy to commit money laundering.
Court Decision and Sentencing Details
Judge Colleen Kollar-Kotelly, who presided over the case, also ordered three years of supervised release following Lichtenstein’s prison term. Although facing up to 20 years, Lichtenstein received a reduced sentence of five years due to his cooperation with investigators, his lack of prior criminal history, and the fact that he laundered only a portion—25,111 out of 119,754 Bitcoin—of the stolen funds. Today, the full stolen amount is valued at over $10 billion, with Bitcoin hovering around $87,500.
Heather Morgan’s Involvement and Upcoming Sentencing
Heather Morgan, Lichtenstein’s wife, also faces sentencing on November 18. Known online by her rap persona, “Razzlekhan,” Morgan pleaded guilty last year to conspiracy charges related to money laundering and defrauding the US. Prosecutors have requested an 18-month sentence for her, emphasizing her secondary role and cooperation in the investigation. Morgan, who spent only a small fraction of the stolen Bitcoin, has requested time served.
Initially believed to have only laundered the funds, Lichtenstein later admitted to orchestrating the hack. Prosecutors revealed that Morgan was unaware of the Bitcoin’s origins for several years until Lichtenstein disclosed his involvement in the Bitfinex breach. She then joined him in laundering the funds, working to hide his role in the heist.
Record-Breaking Seizure
This case marked a historic seizure by the Department of Justice, as it was the largest asset recovery of its kind. With Lichtenstein’s sentence and Morgan’s hearing on the horizon, the investigation remains a pivotal chapter in crypto-related financial crimes.
