Ilya Lichtenstein has been sentenced to five years in prison for his participation in the fraudulent extraction of approximately 120,000 bitcoin from the crypto exchange Bitfinex in 2016.

The U.S. Department of Justice confirmed this ruling, detailing that Lichtenstein employed advanced hacking techniques to infiltrate Bitfinex's network, where he authorized over 2,000 transactions to transfer nearly 120,000 bitcoin into his own wallet. To obscure his crime, he deleted access logs and other evidence from the network.

Coinciding Sentences

Lichtenstein, alongside his wife, Heather Morgan—who is also known as Razzlekhan—laundered the illicit proceeds through a range of sophisticated money laundering techniques. Morgan's sentencing is scheduled for November 18, where prosecutors are expected to recommend a penalty of 18 months in prison.

The couple managed to launder around 25,111 bitcoin (approximately 21% of the stolen total) through various methods, including using Eastern European banks and cryptocurrency mixing services.

Despite the complexity of their laundering methods, some, like connecting Coinbase accounts directly to Lichtenstein, have drawn criticism for their apparent ineffectiveness. According to expert Brett Johnson, Lichtenstein's methods demonstrated a lack of experience, labeling him as imprudent in his actions.

Although Lichtenstein has claimed responsibility for the hack, neither he nor Morgan faced charges directly related to the Bitfinex hack; both pleaded guilty to a single count of conspiracy to commit money laundering in August 2023, a charge that carries a potential 20-year sentence.