2024-11-17
On November 14, 2024, Ilya
Lichtenstein, the hacker behind the 2016 Bitfinex cryptocurrency exchange
breach, has been sentenced to five years in prison for his role in stealing and
laundering approximately 120,000 Bitcoin.
At the time of the theft, these funds
were valued at around $71 million; however, due to Bitcoin's appreciation,
their value has since surged to $10.934 billion.
Lichtenstein, along with his wife, Heather Morgan, hacked into Bitfinex's network in 2016, they employed sophisticated techniques to launder the stolen cryptocurrency.
Their methods included using fictitious
identities to set up online accounts, automating transactions with computer
programs, and converting Bitcoin into other forms of cryptocurrency—a practice
known as "chain hopping."
They also deposited portions of the
stolen funds into accounts at various darknet markets and cryptocurrency
exchanges to obfuscate the transaction trail.
Following their arrests in February
2022, authorities recovered a large portion of the stolen Bitcoin, marking one
of the largest financial seizures in U.S. history.
Lichtenstein's cooperation with law
enforcement has been noted, and he has expressed remorse for his actions.
Morgan, who also pleaded guilty to her
involvement in the laundering scheme, is scheduled for sentencing on November
18, with prosecutors recommending an 18-month prison term.
