A hacker, Ilya Lichtenstein, has been sentenced to five years in a US prison for laundering proceeds from one of the largest cryptocurrency thefts in history.
Lichtenstein admitted guilt last year in the case involving the 2016 hack of the Bitfinex cryptocurrency exchange, resulting in the theft of nearly 120,000 bitcoin. He laundered the stolen cryptocurrency with his wife, Heather Morgan, who used the alias Razzlekhan to promote her hip-hop music.
At the time of the theft, the bitcoin was valued at approximately $70 million (£55.3 million), but its value had soared to over $4.5 billion by the time of their arrest. At today’s prices, the stolen bitcoin would be worth more than double that amount.
Deputy Attorney General Lisa Monaco stated that the $3.6 billion in assets recovered was the largest financial seizure in the DOJ’s history.
District Judge Colleen Kollar-Kotelly remarked, “It’s important to send a message that you can’t commit these crimes with impunity, that there are consequences to them.”
Lichtenstein, who has been incarcerated since his arrest in February 2022, expressed regret for his actions. He also mentioned his intention to apply his skills to combat cybercrime after completing his sentence.
Morgan also pleaded guilty to one count of conspiracy to commit money laundering last year and is scheduled to be sentenced on 18 November. According to court documents, Lichtenstein utilised advanced hacking tools and techniques to infiltrate Bitfinex.
Following the hack, he recruited Morgan to help launder the stolen funds. The couple “employed numerous sophisticated laundering techniques,” the US Department of Justice (DoJ) stated.
These methods included using fictitious identities, converting the funds into different cryptocurrencies, and purchasing gold coins.
Lichtenstein, who was born in Russia but raised in the US, would then meet couriers during family trips to move the laundered money back home, prosecutors explained.
Morgan’s Razzlekhan persona went viral on social media when the case surfaced. Even as the couple tried to conceal the hack, she released numerous expletive-filled music videos and rap songs filmed around New York.
In her lyrics, she described herself as a “bad-ass money maker” and “the crocodile of Wall Street”.
Frances Ibiefo
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