A hacker involved in one of the largest cryptocurrency thefts in history has been sentenced to five years in a US prison. Ilya Lichtenstein, who pleaded guilty last year, admitted to hacking the Bitfinex cryptocurrency exchange in 2016, stealing nearly 120,000 bitcoins.
At the time of the theft, the bitcoins were worth around $70 million (£55.3m), but their value soared to over $4.5 billion by the time of Lichtenstein’s arrest in February 2022. Alongside him, his wife, Heather Morgan, known by her rap alias Razzlekhan, helped launder the stolen funds.
The US Department of Justice (DoJ) described the couple’s methods as “numerous sophisticated laundering techniques,” including creating fake identities, converting funds into various cryptocurrencies, and purchasing gold coins. Lichtenstein even met messengers during family trips to transfer the laundered money.
“The $3.6 billion worth of assets recovered in the case was the biggest financial seizure in the DOJ’s history,” said Deputy Attorney General Lisa Monaco.
“It’s important to send a message that you can’t commit these crimes with impunity, that there are consequences to them,” district judge Colleen Kollar-Kotelly stated during sentencing.
Lichtenstein expressed remorse for his actions and expressed hopes of using his skills to combat cybercrime after serving his sentence.
Heather Morgan, who also pleaded guilty to one count of conspiracy to commit money laundering, is due for sentencing on November 18. Despite her role in the crime, Morgan gained notoriety as “Razzlekhan,” publishing viral rap videos and presenting herself as a tech entrepreneur. She once described herself as a “bad-ass money maker” and “the crocodile of Wall Street” in her music.
Their case highlights the complex and evolving challenges in combating cybercrime.
