Vanessa
Ilya Lichtenstein, who orchestrated the 2016 theft of over 119,000 Bitcoin from cryptocurrency exchange Bitfinex, has been sentenced to five years in prison for money laundering, the U.S. Department of Justice announced Wednesday.
The case, one of the largest cyber thefts in history, resulted in the recovery of stolen assets now worth approximately $10 billion.
Court documents revealed that Lichtenstein, 35, used advanced hacking tools to infiltrate Bitfinex’s network and authorized over 2,000 fraudulent transactions to transfer Bitcoin to his personal wallet. He and his wife, Heather Morgan, employed sophisticated techniques to launder the funds, including “chain hopping,” using mixing services, and converting funds into gold coins. Lichtenstein also erased access credentials and log files from Bitfinex’s network to cover his tracks.
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The sentencing follows a seven-year investigation involving multiple U.S. agencies, including the IRS Criminal Investigation unit, FBI Cyber Division, and Homeland Security Investigations, alongside blockchain forensics firm TRM Labs.
In August 2023, Lichtenstein and Morgan pleaded guilty to money laundering charges. Morgan, known for her online persona “Razzlekhan,” is scheduled to be sentenced on November 18.
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U.S. Attorney Matthew M. Graves called the case a “significant milestone” in the fight against cybercrime. The recovery of the stolen Bitcoin demonstrates how law enforcement can leverage blockchain forensics to track and retrieve stolen cryptocurrency, even years after the crime. In addition to his prison term, Lichtenstein will serve three years of supervised release.
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