Prosecutors Seek Five-Year Sentence for Bitfinex Hack Mastermind

Ilya Lichtenstein, the architect behind the largest hack of the crypto exchange Bitfinex, is facing a recommendation of five years in prison from U.S. prosecutors, according to statements made in a Washington district court.

Alongside his wife, Heather Morgan, Lichtenstein pleaded guilty to conspiracy charges related to laundering money from the staggering $6 billion hack.

In the ongoing United States v. Lichtenstein case, prosecutors are advocating for this five-year sentence while also addressing property forfeiture linked to the historic Bitfinex breach. Last week, Morgan, known as Razzlekhan, was recommended for an 18-month prison term, followed by three years of supervised release.

The government argues that Lichtenstein should receive a harsher punishment than his wife due to his central role in the 2016 hack and the laundering of stolen funds, asserting that “a strong sentence in this case will help to break this cycle.”

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Lichtenstein’s cooperation with authorities in other criminal matters has influenced the request for a shorter sentence. Earlier this year, he provided testimony in a money-laundering case involving the crypto mixer Bitcoin Fog, whose operator, Roman Sterlingov, faces up to 30 years in prison.

The couple employed intricate methods to obscure their laundering efforts, including transferring funds through various crypto exchanges and darknet markets. Their illicit gains were also funneled into non-fungible tokens, gold, and Walmart gift cards.

Notably, the price of LEO tokens experienced a surge earlier this month after the U.S. government declared that Bitfinex would be the sole entity eligible for compensation related to the 2016 Bitcoin hack.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.