Additional Coverage:
Hacker Sentenced for $11 Billion Crypto Heist
A hacker has been imprisoned for five years for stealing and laundering over $11 billion worth of Bitcoin from Bitfinex, a cryptocurrency exchange. Ilya Lichtenstein hacked into Bitfinex’s network in 2016 and laundered the stolen funds with his wife, Heather Morgan.
Planned Theft
Judge Colleen Kollar-Kotelly called the theft “meticulously planned,” stating that it was not a spur-of-the-moment act. She emphasized the need to deter such crimes by imposing severe consequences.
Lichtenstein’s Remorse
Lichtenstein expressed regret for his actions, acknowledging that he wasted his abilities on crime rather than contributing positively to society. He hopes to use his expertise to combat cybercrime after his release.
Complex Laundering Scheme
Lichtenstein used intricate transactions to conceal the stolen Bitcoin’s trail. Morgan assisted him in cleaning the funds. The stolen Bitcoin was initially worth $71 million at the time of the theft.
Bitfinex’s Impact
Bitfinex’s attorney stated that the hack significantly impacted the company’s finances and reputation. The stolen funds comprised 36% of its assets.
Prosecutor’s Recommendations
Prosecutors sought a five-year sentence for Lichtenstein and an 18-month sentence for Morgan, who both pleaded guilty to money laundering conspiracy. They highlighted the complex nature of the laundering scheme, which involved years of planning and execution.