US Seeks 5-Year Sentence for Ilya Lichtenstein, Orchestrator of $6B Bitfinex Hack
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US prosecutors urged a judge to sentence Ilya Lichtenstein, mastermind of the $6b Bitfinex hack, to five years in prison for his role in a money-laundering conspiracy.
In addition to the five-year term, they also recommended three years of supervised release, according to a court filing on Tuesday. This means that the person, while out of prison, remains under the watchful eye of the criminal justice system.
Prosecutors argued that Lichtenstein, who pleaded guilty last year, deserves a longer prison sentence than his wife and accomplice, Heather Morgan. Last week, they recommended an 18-month sentence for Morgan, also known as the “Crocodile of Wall Street.”
Lichtenstein led the 2016 Bitfinex hack, stealing about 120,000 Bitcoin with his wife, Morgan. Initially worth $71m, the stolen Bitcoin’s value soared as prices surged, marking it among the largest crypto thefts ever.
Lichtenstein allegedly used advanced laundering tactics to obscure the stolen funds. He created fake identities for online accounts, automated transactions and channeled money through dark web markets like AlphaBay and Hydra. He also swapped Bitcoin for other cryptocurrencies, used mixing services like Bitcoin Fog for anonymity, and converted some funds into gold coins, which he physically hid.
Lichtenstein pleaded guilty to conspiring to launder money, while Morgan admitted to conspiracy charges related to money laundering and defrauding the US. Lichtenstein’s sentencing is slated for Nov. 14, with Morgan’s following on Nov. 15.
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