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Ilya Lichtenstein, the Bitfinex hacker, has received a five-year prison sentence. He attempted to launder a staggering 120,000 bitcoin. This news comes from MK Manoylov Legal.
Prosecutors suggested a lighter sentence for Lichtenstein because he cooperated with the investigation. His wife, Heather “Razzlekahn” Morgan, will be sentenced on November 18.
According to Bloomberg, Lichtenstein's five-year term aligns with what prosecutors recommended. He faced serious charges: conspiracy to commit money laundering and conspiracy to defraud the United States. The maximum penalties for these charges are 20 years and five years, respectively. However, prosecutors argued that Lichtenstein's cooperation, including his testimony in the Bitcoin Fog case, justified a reduced sentence.
Heather Morgan, Lichtenstein's wife and co-conspirator, is waiting for her sentencing. She played a smaller role in the money laundering scheme. Prosecutors have proposed an 18-month sentence for her.
Back in 2016, Lichtenstein allegedly hacked the Bitfinex exchange. He stole about 120,000 bitcoin, valued at $72 million then and now worth around $10.7 billion. He and Morgan are accused of laundering these funds through crypto mixers, layered transactions, and darknet markets, according to the U.S. Department of Justice. This represents the largest asset seizure by the U.S. government to date.
In August 2023, both Lichtenstein and Morgan pleaded guilty to charges related to money laundering from the Bitfinex hack.