The hacker behind the massive $10.934 billion Bitfinex exploit has been sentenced to five years in prison.
Ilya Lichtenstein, who pulled off the hack in 2016, was found guilty of fraudulently transferring 119,754 Bitcoin (BTC) to a wallet he controlled. This information comes from a recent press release by the U.S. Department of Justice (DOJ).
After the hack, Lichtenstein tried to cover his tracks. He deleted crucial Bitfinex files that could have helped law enforcement identify him. He even asked his wife, Heather Morgan, to help him launder the stolen funds.
The DOJ reported that Lichtenstein and Morgan used advanced money laundering techniques. They deposited and withdrew funds through darknet and cryptocurrency exchanges. They also converted Bitcoin into other digital assets and used crypto mixing services to hide where the money came from.
Both Lichtenstein and Morgan pleaded guilty to one count of conspiracy to commit money laundering on August 3, 2023. Morgan is set to be sentenced on November 18. Lichtenstein will serve his prison term, followed by three years of supervised release.
In a memo submitted earlier this month, Morgan expressed her shock upon learning about her husband’s crime four years later. She said she felt complicit and helped him cover up his actions because she had accepted stolen crypto from him before.
She stated, “In 2020, I learned that my husband Ilya Lichtenstein committed a serious crime in 2016. When he told me what he had done, I was in complete shock. I made the poor decision to get involved in Ilya’s crime. Our relationship was far from perfect, but I deeply love and care about my husband. The truth is, I did not want him to go to prison because we were planning to start a family together.”