A cybercriminal involved in one of the largest cryptocurrency thefts in history has been sentenced to five years in a U.S. prison.
Ilya Lichtenstein, who admitted guilt last year, was charged in connection with the 2016 hack of the Bitfinex cryptocurrency exchange, during which approximately 120,000 bitcoins were stolen.
The scheme was carried out with assistance from his wife, Heather Morgan, a self-styled rapper who went by the alias “Razzlekhan.”
At the time of the theft, the stolen bitcoin was valued at around $70 million, but its worth skyrocketed to over $4.5 billion by the time authorities apprehended the couple. Based on today’s prices, its value would be more than twice as high.
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Deputy Attorney General Lisa Monaco highlighted the recovery of $3.6 billion in assets from the case, calling it the largest financial seizure in the history of the U.S. Department of Justice.
“The sentence sends a clear signal: there are serious consequences for these crimes,” remarked District Judge Colleen Kollar-Kotelly during the trial.
Since his arrest in February 2022, Lichtenstein has been in custody. He expressed regret for his actions and stated his intention to use his skills to combat cybercrime once he completes his sentence.
Morgan, who also pleaded guilty last year to conspiracy to launder money, is scheduled for sentencing on November 18.
Court records reveal that Lichtenstein utilized sophisticated hacking tools to breach Bitfinex’s systems and later enlisted Morgan to assist in laundering the stolen bitcoin.
According to the Department of Justice, the pair employed complex methods, including fake identities, cryptocurrency conversions, and the purchase of gold coins, to disguise the origin of the funds.
Prosecutors revealed that Lichtenstein, originally from Russia but raised in the U.S., moved the laundered funds during family trips, using couriers to bring the money back home.
Morgan who portrayed herself as a tech-savvy entrepreneur in articles for Forbes, described herself as an “economist, serial entrepreneur, software investor, and rapper.”
Morgan’s unconventional alter ego, Razzlekhan, gained widespread attention when the case became public. Despite efforts to conceal their criminal activities, she continued releasing provocative rap videos filmed in New York and branding herself as “the crocodile of Wall Street” and a “bad-ass money maker.”
