Ilya Lichtenstein, 35, was sentenced to five years in prison today for his role in a sophisticated money laundering operation involving the 2016 hack of cryptocurrency exchange Bitfinex. The hack, one of the largest in history, resulted in the theft of nearly 120,000 bitcoin, valued at approximately $4.5 billion at the time.
Court documents reveal that Lichtenstein used advanced hacking techniques to infiltrate Bitfinex’s network and unauthorizedly transferred the stolen bitcoin into a wallet he controlled. He then took steps to cover his tracks by deleting key files, preventing detection by authorities. To launder the stolen funds, Lichtenstein, with the help of his wife Heather Morgan, used a range of complex methods, including setting up fake identities, using cryptocurrency mixing services, and converting the stolen bitcoin into gold coins.
Both Lichtenstein and Morgan pleaded guilty to conspiracy to commit money laundering in August 2023. In addition to his prison sentence, Lichtenstein was ordered to serve three years of supervised release. Morgan’s sentencing is set for November 18.
