Bitfinex Hacker Ilya Lichtenstein Jailed for Five Years
Ilya 'Dutch' Lichtenstein, the mastermind behind the 2016 Bitfinex hack that led to the theft of around 120,000 Bitcoins, has been sentenced to five years in prison. Alongside the theft, he was convicted of money laundering conspiracy and will serve three years of supervised release following his prison term.One of the Largest Crypto Exchange HacksThe sentencing followed guilty pleas by Lichtenstein and his wife and co-conspirator, Heather Morgan, to one count of conspiracy to commit money laundering. Morgan’s sentencing is scheduled for November 18.Morgan, who went by the pseudonym "Razzlekhan" even made surreal rap music videos and posted them on internet. However, she remains inactive after her arrest.US authorities recovered the stolen Bitcoins, which were worth $3.6 billion at the time of their recovery in a 2022 raid on the couple. Today, those Bitcoins are worth more than $10.5 billion.Bitcoin recently hit a record value above $93,000 amid the ongoing bullish rally. Interest in cryptocurrency surged following the US presidential election, which led to Donald Trump's victory. Trump is perceived as crypto-friendly and is expected to be lenient with cryptocurrency industry regulations.???? Ilya Lichtenstein, derrière le hack de 120 000 BTC de Bitfinex, est condamné à 5 ans de prison. pic.twitter.com/cElbwN7k6a— Coin Academy (@coinacademy_fr) November 14, 2024Laundering Crypto Is DifficultAccording to court documents, Lichtenstein accessed the Bitfinex network in 2016 and fraudulently authorised over 2,000 transactions, transferring 119,754 Bitcoins from the crypto exchange’s wallets to those he controlled. He even deleted the exchange’s access credentials and other log files to cover his tracks.After the hack, he and his wife laundered the stolen funds. They used advanced techniques, including fictitious identities to set up online accounts and computer programs to automate transactions. They deposited the stolen funds in several darknet markets and crypto exchanges, then withdrew them to obscure the origin of the cryptocurrencies.Additionally, the duo converted Bitcoins into other cryptocurrencies, a process known as “chain hopping,” and used crypto-mixing services for further anonymity. They also purchased gold coins with the stolen funds. This article was written by Arnab Shome at www.financemagnates.com.
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Ilya 'Dutch' Lichtenstein, the mastermind behind the 2016 Bitfinex hack that led to the theft of around 120,000 Bitcoins, has been sentenced to five years in prison. Alongside the theft, he was convicted of money laundering conspiracy and will serve three years of supervised release following his prison term.
One of the Largest Crypto Exchange Hacks
The sentencing followed guilty pleas by Lichtenstein and his wife and co-conspirator, Heather Morgan, to one count of conspiracy to commit money laundering. Morgan’s sentencing is scheduled for November 18.
Morgan, who went by the pseudonym "Razzlekhan" even made surreal rap music videos and posted them on internet. However, she remains inactive after her arrest.
US authorities recovered the stolen Bitcoins, which were worth $3.6 billion at the time of their recovery in a 2022 raid on the couple. Today, those Bitcoins are worth more than $10.5 billion.
Bitcoin recently hit a record value above $93,000 amid the ongoing bullish rally. Interest in cryptocurrency surged following the US presidential election, which led to Donald Trump's victory. Trump is perceived as crypto-friendly and is expected to be lenient with cryptocurrency industry regulations.
???? Ilya Lichtenstein, derrière le hack de 120 000 BTC de Bitfinex, est condamné à 5 ans de prison. pic.twitter.com/cElbwN7k6a— Coin Academy (@coinacademy_fr) November 14, 2024
Laundering Crypto Is Difficult
According to court documents, Lichtenstein accessed the Bitfinex network in 2016 and fraudulently authorised over 2,000 transactions, transferring 119,754 Bitcoins from the crypto exchange’s wallets to those he controlled. He even deleted the exchange’s access credentials and other log files to cover his tracks.
After the hack, he and his wife laundered the stolen funds. They used advanced techniques, including fictitious identities to set up online accounts and computer programs to automate transactions. They deposited the stolen funds in several darknet markets and crypto exchanges, then withdrew them to obscure the origin of the cryptocurrencies.
Additionally, the duo converted Bitcoins into other cryptocurrencies, a process known as “chain hopping,” and used crypto-mixing services for further anonymity. They also purchased gold coins with the stolen funds. This article was written by Arnab Shome at www.financemagnates.com.
