Key Takeaways
- The Bitfinex hack was worth around $70 million in 2016 and is worth over $10 billion today.
- Authorities have seized and recovered a majority (106,068) of the stolen 120,000 BTC.
- When released from prison, the hacker expressed a desire to use his expertise to fight cybercrime.
The hacker and co-conspirator involved in the costly 2016 Bitfinex hack have been sentenced by the U.S. Department of Justice (DoJ) for stealing 120,000 Bitcoin (BTC) from the cryptocurrency exchange.
Bitfinex Hacker Sentenced
As per a Nov. 14 release from the DOJ, Ilya Lichtenstein, the man behind the 2016 Bitfinex hack, one of the biggest crypto hacks in history, has been sentenced to five years in U.S. prison and three years supervised release.
Lichenstein, his wife, ‘rapper,’ and co-conspirator Heather Morgan, aka “Razzlekhan,” were originally arrested in February 2022. Both pleaded guilty to conspiracy to commit money laundering in August 2023.
Facing a maximum sentence of 20 years, Lichenstein expressed remorse for “wasting” his “talents on crime instead of a positive contribution to society,” he added:
“I want to take full responsibility for my actions and make amends any way I can.”
Interestingly, Lichenstein will receive credit for the 29 months he has served in custody since his February 2022 arrest. With “good behavior” credit, they could release him in less than two years. His wife will receive her sentencing on Nov. 18, 2024.
Billions in Bitcoin
The initial 2016 hack saw Lichenstein leverage “advanced hacking tools and techniques” to fraudulently force over 2,000 transactions to transfer 119,754 BTC tokens from Bitfinex to his wallets. Prosecutors noted in a sentencing memorandum:
“Over half a decade, the defendant engaged in what IRS agents described as the most complicated money laundering techniques they had seen to date.”
Lichenstein had stolen approximately $70 million worth of BTC at the time. By the time of his arrest in February 2022, the stash had become a $4.5 billion behemoth. At today’s prices ($89,000), it would be worth over $10 billion.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
