A hacker has been sentenced to five years in a US prison for laundering the proceeds of one of the largest cryptocurrency thefts ever. Ilya Lichtenstein admitted his guilt in the case involving the Bitfinex cryptocurrency exchange being hacked in 2016, resulting in the theft of nearly 120,000 bitcoin.
He worked with his wife, Heather Morgan, who used the alias Razzlekhan to promote her hip hop music, to launder the stolen cryptocurrency. At the time of the theft, the bitcoin was valued at around $70 million, but had skyrocketed to over $4.5 billion by the time of their arrest. Today, they would be worth more than double that amount.
The $3.6 billion in assets recovered in the case was the largest financial seizure in the history of the Department of Justice. District judge Colleen Kollar-Kotelly emphasized the importance of holding criminals accountable for their actions.
Lichtenstein, who has been in prison since his arrest in February 2022, expressed regret for his actions and expressed a desire to combat cybercrime after serving his sentence. Morgan also pleaded guilty to conspiracy to commit money laundering and awaits sentencing.
The couple used a variety of sophisticated techniques to launder the stolen funds, including using fake identities, converting the funds into different cryptocurrencies, and purchasing gold coins. Prosecutors stated that Lichtenstein would meet couriers during family trips to move the laundered money back to the US.
Vocabulary List:
- Laundering /ˈlɔːndərɪŋ/ (noun): The process of concealing the origins of illegally obtained money.
- Proceeds /ˈproʊ.siːdz/ (noun): The money obtained from a particular event or transaction.
- Sentenced /ˈsɛntənst/ (verb): Declared the punishment for a crime.
- Conspiracy /kənˈspɪr.ə.si/ (noun): A secret plan by a group to do something unlawful or harmful.
- Seizure /ˈsiː.ʒər/ (noun): The act of taking possession of something especially by legal authority.
- Accountable /əˈkaʊn.tə.bəl/ (adjective): Required to explain actions or decisions; responsible.
How much do you know?
In which year was the Bitfinex cryptocurrency exchange hacked?
How much bitcoin was stolen during the Bitfinex exchange hack?
What alias did Heather Morgan use to promote her music?
When did Ilya Lichtenstein express regret for his actions?
What was the value of the stolen bitcoin at the time of the theft?
How did Lichtenstein move the laundered money back to the US?
The stolen bitcoin was valued at over $4.5 billion by the time of arrest.
The laundering case involving Ilya Lichtenstein was the largest financial seizure in DOJ history.
Heather Morgan is yet to be sentenced for her involvement in the money laundering scheme.
Ilya Lichtenstein expressed a desire to join law enforcement after serving his sentence.
The stolen funds were converted into gold coins as part of the laundering process.
The theft in the Bitfinex exchange hack was larger than any other cryptocurrency theft to date.
The value of the stolen bitcoin at the time of arrest was over $ billion.
Ilya Lichtenstein has been in prison since his arrest in February .
Heather Morgan pleaded guilty to conspiracy to commit money laundering and awaits .
Prosecutors stated that Lichtenstein would meet during family trips to move the laundered money back to the US.
The stolen funds were laundered using fake identities, different cryptocurrencies, and purchasing .
The stolen bitcoin from the Bitfinex exchange hack had skyrocketed in value to over $ billion by the time of arrest.