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Ilya “Dutch” Lichtenstein has been sentenced to five years in prison by a federal judge in Washington for stealing billions in bitcoin from cryptocurrency exchange Bitfinex.
According to a Bloomberg According to the report, Lichtenstein received his sentence from the federal court in Washington on November 14. His sentence aligns with what prosecutors wanted for the Bitfinex hacker when they asked for a more “severe” punishment for his money laundering scheme compared to his social media rapper wife. Heather “Razzlekhan” Morgan who was recommended an 18-month sentence.
Under sentencing guidelines, the hacker previously faced a maximum sentence of 20 years in prison. But his sentence was reduced because he served as a key government witness in several cybercrime-related cases, providing substantial assistance to investigators.
One of the cases Lichtenstein testified in was the money laundering trial involving a mixing service called bitcoin Fog in February 2024.
Together with his rapper wife, Lichtenstein hacked the Bitfinex crypto exchange and mined approximately 119,754 bitcoin (btc). At the time of the theft, his btc hoard was worth $71 million. But with bitcoin's current rally, the cryptocurrency's price rose as high as $93,000 in the last week, shortly after the US Consumer Price Index report was released.
Based on the current market price, the amount of btc mined by Lichtenstein is now worth over $10.5 billion. bitcoin is currently trading at $88,158.
Described as a “highly qualified computer expert,” Lichtenstein hacked the Bitfinex network in 2016. He then proceeded to authorize more than 2,000 bitcoin transactions in a cryptocurrency wallet owned by the hacker. In addition to the Bitfinex hack, Lichtenstein has a history of compromising accounts on other major crypto platforms, including Coinbase and Kraken.
Morgan claimed that she learned about her husband's Bitfinex heist in 2020. She then proceeded to help him hide the stolen bitcoin by using various methods, such as purchasing nfts, gold, and Walmart gift cards.
Additionally, prosecutors claim the couple used sophisticated money laundering methods to make their funds untraceable. They are known to withdraw and deposit funds from unregulated crypto exchanges and darknet markets.
Morgan is scheduled to be sentenced on November 18. Like her husband, Morgan's sentence could be reduced due to her cooperation, although she also faces up to five years behind bars for conspiring to defraud the United States.
