International
US Hacker Sentenced To Five-Year For Laundering $4.5B In Cryptocurrency Theft
A hacker has been sentenced to five years in prison in the US for laundering proceeds from one of the largest cryptocurrency thefts in history.
Ilya Lichtenstein pleaded guilty last year to his involvement in the 2016 hack of the Bitfinex cryptocurrency exchange, where nearly 120,000 bitcoin were stolen.
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At the time of the theft, the bitcoin was valued at around $70 million, but by the time Lichtenstein and his wife Heather Morgan were arrested, its value had surged to over $4.5 billion—more than double that amount today.
Lichtenstein worked with Morgan, who used the alias “Razzlekhan” to promote her hip hop music while helping him launder the stolen funds.
The couple employed various sophisticated methods, including using fictitious identities, converting the stolen bitcoin into other cryptocurrencies, and purchasing gold coins.
The US Department of Justice (DOJ) reported that $3.6 billion of the stolen assets were recovered—marking the largest financial seizure in DOJ history.
Deputy Attorney General Lisa Monaco emphasized the importance of sending a strong message that such crimes carry serious consequences. District Judge Colleen Kollar-Kotelly reinforced this point, stating, “There are consequences to these crimes.”
Lichtenstein, who has been incarcerated since his arrest in February 2022, expressed remorse for his actions and hopes to use his skills to combat cybercrime after serving his sentence.
Morgan, who also pleaded guilty last year to conspiracy to commit money laundering, is set to be sentenced on November 18.
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Court documents reveal that Lichtenstein used advanced hacking tools to infiltrate Bitfinex and then, with Morgan’s help, laundered the stolen funds. Their efforts included meeting couriers during family trips to move the illicit money.
Morgan’s “Razzlekhan” persona gained viral attention when the case became public. Despite attempting to cover up the hack, she posted expletive-laden rap videos and songs that portrayed her as a “bad-ass money maker” and “the crocodile of Wall Street.” In addition, she wrote articles for Forbes, presenting herself as a successful businesswoman and serial entrepreneur.
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