Bitfinex Hacker Gets 5 Years for $119M Bitcoin Heist

Ilya Lichtenstein, one of the individuals involved in the notorious 2016 Bitfinex hack, was recently sentenced to five years in prison following his conviction on charges of money laundering.

Lichtenstein and his wife, Heather Morgan, were arrested in 2022 for their role in laundering Bitcoin linked to the massive hack. Lichtenstein, who had pleaded guilty to conspiracy to commit money laundering, saw his sentence reduced due to his cooperation with authorities and his lack of a criminal record.

Although prosecutors had the option to pursue a much harsher 20-year sentence, they recommended a five-year term, which was ultimately handed down by U.S. District Judge Colin Kolar-Cotelli.

The case involved the theft of 119,754 BTC from Bitfinex in 2016, with Lichtenstein and Morgan laundering around 95,000 BTC before their arrest. At the time of their capture, it was the largest seizure of cryptocurrency assets by the U.S. Department of Justice.

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Heather Morgan, known by her rap alter-ego “Razzlekhan,” will face sentencing on November 18, and has requested a prison sentence equal to or less than Lichtenstein’s. Meanwhile, another high-profile case involving FTX co-founder Gary Wang is also nearing its sentencing, with expectations that his cooperation could lead to a lighter sentence.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.