US Hacker Sentenced for Laundering Billions in Bitcoin Heist

A U.S. court has sentenced hacker Ilya Lichtenstein to five years in prison for helping to launder money from one of the biggest cryptocurrency thefts ever.

Lichtenstein pleaded guilty last year to his role in a 2016 hack of the Bitfinex cryptocurrency exchange, where he stole nearly 120,000 bitcoin.

Lichtenstein laundered the stolen cryptocurrency with help from his wife, Heather Morgan, who went by the stage name “Razzlekhan” to promote her rap music. At the time of the hack, the stolen bitcoin was worth $70 million but rose to over $4.5 billion by the time of their arrest in 2022.

The U.S. Department of Justice seized $3.6 billion worth of assets in this case, making it the largest financial seizure in its history. Deputy Attorney General Lisa Monaco said the case shows there are serious consequences for financial crimes.

Judge Colleen Kollar-Kotelly echoed this, adding, “You can’t commit these crimes without facing the results.”

Lichtenstein has been in prison since his arrest and has expressed regret for his actions. He said he hopes to use his skills to fight cybercrime once his sentence is complete. Morgan, who also pleaded guilty, will be sentenced on November 18.

Court documents reveal that Lichtenstein used advanced hacking tools to break into Bitfinex’s systems and then worked with Morgan to cover up the theft.

They used methods like fake identities, converting the stolen funds into different cryptocurrencies, and buying gold to hide the money. Prosecutors said Lichtenstein would meet with couriers on family trips to bring the laundered money back home.

Heather Morgan, or “Razzlekhan,” became known online after the case broke, with her music videos going viral. In her lyrics, she called herself a “bad-ass money maker” and “the crocodile of Wall Street.” She also wrote for Forbes magazine, where she called herself a “serial entrepreneur” and “economist,” adding an ironic twist to her story.