A New York technology entrepreneur has been sentenced to five years in prison after admitting to laundering funds stolen from Bitfinex, a major cryptocurrency exchange. Ilya Lichtenstein, 35, hacked into Bitfinex’s network in 2016 using sophisticated tools and techniques, making off with approximately 120,000 bitcoin. His wife, Heather Morgan, also known as “Razzklekhan” in the hip-hop world, assisted him in the scheme.
The stolen bitcoin was valued at $71 million at the time of the theft but had skyrocketed to over $4.5 billion by the time the couple was apprehended in February 2022. This made it one of the most significant financial seizures in the history of the Department of Justice, with $3.6 billion in assets recovered from the couple.
Heather Morgan pleaded guilty to one count of conspiracy to commit money laundering and is awaiting sentencing on November 18. In addition to his five-year prison term, Lichtenstein has been ordered to serve three years of supervised release.
The case underscores the risks associated with cryptocurrency and the importance of robust cybersecurity measures in the digital asset space. It serves as a cautionary tale for those who may be tempted to engage in illegal activities within the cryptocurrency market.
