Bitfinex Hacker Sentenced to Five Years for $10 Billion Bitcoin Heist

Ilya “Dutch” Lichtenstein, the hacker behind one of the largest cryptocurrency thefts, has been sentenced to five years in prison for his role in the 2016 Bitfinex hack, where nearly 120,000 Bitcoin were stolen. At the time of the theft, the stolen Bitcoin was valued at approximately $71 million; however, its value has since surged to over $10 billion. The Verge

Lichtenstein, along with his wife, Heather Morgan, conspired to launder the stolen funds using sophisticated techniques, including creating fictitious identities and converting Bitcoin into other cryptocurrencies. Their efforts to obscure the origins of the funds involved transactions across various darknet markets and cryptocurrency exchanges. The Verge

In February 2022, the U.S. Department of Justice seized approximately 95,000 of the stolen Bitcoin, marking the largest financial seizure in the department’s history. Since then, an additional $475 million tied to the hack has been recovered. Department of Justice

While Lichtenstein’s five-year sentence is notably lighter than the maximum 20-year penalty for conspiracy to commit money laundering, Morgan is expected to receive an 18-month prison sentence when she is sentenced on November 18th. The Verge

This case underscores the complexities of cryptocurrency-related crimes and the ongoing efforts by law enforcement to address such challenges.