US hacker sentenced over Bitcoin heist worth billions

Ilya Lichtenstein, a hacker, has been sentenced to five years in prison for his role in one of the largest cryptocurrency thefts in history. He pleaded guilty last year to charges related to the hacking of the Bitfinex cryptocurrency exchange in 2016, where nearly 120,000 bitcoins were stolen. At the time of the theft, the value of the stolen bitcoins was around 70 million dollars, but by the time Lichtenstein and his wife, Heather Morgan, were arrested, the value had skyrocketed to over 4. 5 billion dollars. If we consider today's prices, the amount would be even higher. The recovery of 3. 6 billion dollars in assets marked the largest financial seizure in the history of the Department of Justice, as stated by Deputy Attorney General Lisa Monaco. She emphasized the importance of sending a clear message that individuals who commit such crimes will face serious consequences. District Judge Colleen Kollar-Kotelly echoed this sentiment, stating that people cannot engage in criminal activities without facing repercussions. Lichtenstein has been in custody since his arrest in February 2022 and expressed remorse for his actions. He mentioned that he hopes to use his skills to combat cybercrime after serving his sentence. Heather Morgan also pleaded guilty last year to one count of conspiracy to commit money laundering and is scheduled to be sentenced on November 18. According to court documents, Lichtenstein utilized advanced hacking tools and techniques to breach the security of Bitfinex. After the hack, he enlisted Morgan's assistance to launder the stolen funds. They employed a variety of sophisticated laundering techniques, including using fake identities, converting the stolen bitcoins into different cryptocurrencies, and purchasing gold coins. Lichtenstein, who was born in Russia but raised in the United States, would meet couriers during family trips to transfer the laundered money back home. Heather Morgan, who performed hip hop music under the alias Razzlekhan, continued to create music videos even as the couple attempted to cover up their crime. In her lyrics, she referred to herself as a 'bad-ass money maker' and 'the crocodile of Wall Street'. Additionally, she claimed in articles published in Forbes magazine that she was a successful technology entrepreneur, describing herself as an 'economist, serial entrepreneur, software investor, and rapper'.