Ilya “Dutch” Lichtenstein, the mastermind behind the 2016 Bitfinex Bitcoin heist, has been sentenced to five years in prison for conspiring with his wife to launder billions in stolen cryptocurrency.
Lichtenstein and his wife, Heather Morgan, also known as “Razzlekhan” for her social media rap videos, pleaded guilty last year. Morgan, who faces an 18-month sentence recommendation, will be sentenced on Nov. 18.
In 2016, Lichtenstein hacked into the Bitfinex exchange, stealing 119,754 Bitcoin worth $71 million at the time. With Bitcoin now valued over $90,000 per coin, the stolen amount is now worth billions. The heist has become infamous due to its scale and complexity.
According to a Bloomberg report, Judge Colleen Kollar-Kotelly noted Lichtenstein’s actions’ deliberate, prolonged nature. Using sophisticated hacking methods, he moved Bitcoin to his own wallet and, with Morgan’s help, meticulously laundered the funds.
The couple used various techniques to cover their tracks, including creating fake identities, transferring small sums, and using crypto exchanges and darknet markets. They even purchased NFTs, gold, and Walmart gift cards with the funds.
Despite the severity of his crimes, Lichtenstein has cooperated with authorities since his plea, aiding investigations in other cases, including a money-laundering trial involving Bitcoin Fog.
Prosecutors acknowledged his technical skills and expressed hope for his potential rehabilitation, as he expressed remorse and pledged to use his skills to combat cybercrime in the future.
This case, USA v. Lichtenstein, underscores the high stakes and complexities of cryptocurrency crime, as well as the challenges authorities face in tracking stolen digital assets across global platforms.
