Ilya Lichtenstein, the hacker behind one of the largest cryptocurrency thefts in history, has been sentenced to five years in a US federal prison for laundering the proceeds of the 2016 Bitfinex hack. Lichtenstein, who pleaded guilty last year, was involved in the theft of nearly 120,000 bitcoins from the popular cryptocurrency exchange. While the bitcoin was worth around $70 million at the time of the theft, the value soared to more than $4.5 billion by the time of Lichtenstein and his wife, Heather Morgan’s, arrest in February 2022. At current prices, the stolen funds would be worth over $8 billion.
Lichtenstein’s wife, Morgan, who went by the alias “Razzlekhan” and promoted her hip-hop music online was also implicated in the laundering operation. Together, they used sophisticated methods to launder the stolen bitcoin, including the creation of fake identities, converting the funds into other cryptocurrencies, and purchasing gold coins. The couple’s efforts to hide their activities were elaborate, but their actions were eventually uncovered, leading to one of the largest financial seizures in US history, with more than $3.6 billion recovered.
District Judge Colleen Kollar-Kotelly, who sentenced Lichtenstein, emphasized the importance of accountability for such crimes, saying, “It’s important to send a message that you can’t commit these crimes with impunity, that there are consequences to them.” Lichtenstein, who has been in custody since his arrest, expressed remorse for his actions and indicated a desire to use his skills to combat cybercrime once he serves his sentence.
Morgan, who also pleaded guilty to conspiracy to commit money laundering, is set to be sentenced on November 18, 2024. The case garnered significant public attention, especially due to Morgan’s Razzlekhan persona, which went viral when the hack was exposed. Known for her expletive-filled rap videos and self-styled “crocodile of Wall Street” image, Morgan portrayed herself as a successful entrepreneur and tech investor, a stark contrast to her role in the massive cryptocurrency crime.
