By crypto.news | Created at 2024-11-15 08:06:03 | Updated at 2024-11-22 08:59:19
1 week ago
Ilya “Dutch” Lichtenstein has been sentenced to five years in prison by a Washington federal judge for stealing billions worth of Bitcoin from crypto exchange Bitfinex.
According to a Bloomberg report, Lichtenstein received his sentence from the Washington federal court on Nov. 14. His sentence aligns with what prosecutors wanted for the Bitfinex-hacker when they requested a more “severe” punishment for his money laundering scheme compared to his wife, social media rapper Heather “Razzlekhan” Morgan who was recommended an 18-month sentence.
According to sentencing guidelines, the hacker previously faced a maximum of 20 years in prison. But his sentence was reduced due to the fact that he served as a key government witness for a number of cases involving cybercrime, providing substantial assistance for investigators.
One of the cases Lichtenstein testified in was the money-laundering trial which involved a mixing service called Bitcoin Fog in February 2024.
Together with his rapper wife, Lichtenstein hacked into crypto exchange Bitfinex and extracted approximately 119,754 Bitcoin(BTC). At the time of theft, his BTC trove was worth $71 million. But with the ongoing Bitcoin rally, the cryptocurrency’s price has surged to as high as $93,000 in the past week shortly after the U.S. Consumer Price Index report was released.
Based on the current market price, the amount of BTC extracted by Lichtenstein is now worth more than $10.5 billion. Bitcoin is currently trading hands at $88,158.
Described as a “highly skilled computer expert,” Lichtenstein hacked into the Bitfinex network in 2016. He then proceeded to authorize more than 2,000 transactions of Bitcoin into a cryptocurrency wallet owned by the hacker. Apart from the Bitfinex hack, Lichtenstein has a history of compromising accounts on other major crypto platforms, including Coinbase and Kraken.
Morgan claimed that she found out about her husband’s Bitfinex heist in 2020. She then proceeded to help him hide the stolen Bitcoin through using a number of methods, such as purchasing NFTs, gold and Walmart gift cards.
Additionally, prosecutors state that the couple used sophisticated money-laundering methods to make their funds untraceable. They have been known to withdraw and deposit funds from unregulated crypto exchanges and darknet markets.
Morgan is scheduled to receive her sentence on Nov. 18. Like her husband, Morgan’s sentence could be reduced due to her cooperation, though she also faces up to five years behind bars for conspiring to defraud the U.S.
