While awaiting a court decision next month, U.S. prosecutors have requested that Ilya Lichtenstein, the mastermind behind the 2016 hack of the British crypto exchange Bitfinex, which resulted in a staggering loss of over $8 billion, be sentenced to five years in prison for his crime.
Almost 120,000 BTC Theft
Lichtenstein carried out one of the most significant Bitcoin hacks in history. Using his technical and cybercrime skills, he breached the Bitfinex system and stole a massive 119,756 BTC worth over $8 billion.
His rapper wife, Heather Morgan (Razzlekhan), joined him on the mission. She helped her husband launder the stolen funds by depositing and withdrawing from crypto exchanges and darknet markets.
Even after finding out in 2020 that her husband had stolen the funds, she assisted him in hiding the money they used to purchase gift cards and non-fungible tokens (NFTs).
The notorious couple did not plead guilty to the crime until last year after the court arrested them and demanded clarifications on how they had made such a massive sum of money.
Under the terms of his guilty plea, Lichtenstein will give up all earnings from his crime.
Five Years Behind Bars
Government lawyers have analyzed the crime and expressed that a strong prison sentence will help break the cycle of young cybercriminals whose illicit activities online are “normalized in a way that trivializes the impact on the victims.”
However, the prosecutors are seeking to lower Lichtenstein’s prison sentence to five years, considering that he assisted their investigations earlier this year when he testified on behalf of the government in the Bitcoin Fog money laundering case.
Since Morgan was involved in the mission, the prosecutors do not plan to let her go scot-free. Instead, they have suggested an 18-month prison sentence for her, given that she only helped in laundering the funds and was not directly involved in her husband’s hacking crime.
Meanwhile, recent hacks have rocked the crypto industry, underlining the need for investors and traders to be more safety-conscious. The market lost about $120 million in over 20 hacks in September.
