Biggest Crypto Hack’s Mastermind Ilya Lichtenstein Faces 5-Yr Prison Sentence

Ilya Lichtenstein, the mastermind behind the biggest-ever hack of crypto exchange Bitfinex, must face 5 years of prison sentence, US prosecutors urged to a district judge in Washington. Lichtenstein and his wife Heather Morgan plead guilty to the money-laundering conspiracy tied to the $6 billion hack of the Bitfinex exchange.

Prosecutors Demand 5 Years of Imprisonment for Ilya Lichtenstein

In the latest development in the United States v. LICHTENSTEIN lawsuit, prosecutors seek at least 5 years of prison sentence for Ilya Lichtenstein. The move comes amid the forfeiture of property filing in the $6 billion hack of the Bitfinex exchange, one of the biggest-ever crypto heists.

In a court filing last week, defendant Heather Morgan, aka Razzlekhan, was urged to be sentenced to a period of 18 months of imprisonment followed by 3 years of supervised release.

Ilya Lichtenstein, who pleaded guilty last year, should spend more time in prison than his rapper wife and co-conspirator Heather Morgan, the US government said Tuesday in a court filing. “A strong sentence in this case will help to break this cycle,” added the federal prosecutors.

Lichtenstein was the mastermind behind the Bitfinex hack in 2016 and laundering money with the help of his wife Razzlekhan. She admitted helping her husband cover up the stolen crypto even after finding out in 2020 that Lichtenstein was behind the hack.

Why Prosecutors Seek Just 5-Year in Prison?

Ilya Lichtenstein is helping prosecutors in other criminal cases, which made the US government demand only a shorter prison sentence. He testified on behalf of the government in a money-laundering trial involving crypto mixer called Bitcoin Fog earlier this year.

Roman Sterlingov, a Russian-Swedish citizen behind Bitcoin Fog, faces 30 years of prison sentence for money laundering.

Lichtenstein and Morgan used sophisticated money-laundering techniques to cover their tracks, These include depositing and withdrawing funds from crypto exchanges and darknet markets, according to a Bloomberg report. The couple used the proceeds to purchase nonfungible tokens, gold, and Walmart gift cards.

LEO price surged earlier this month as the US Government claims Bitfinex as solely eligible for compensation for the 2016 Bitcoin hack.

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Varinder Singh

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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