Hacker Sentenced to 5 Years for Stealing 120,000 Bitcoins from Bitfinex

MetaversePlanet November 19, 2024Last Updated: November 19, 2024

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In 2016, the Bitfinex cryptocurrency exchange fell victim to one of the largest robberies in history, with approximately 120,000 Bitcoins stolen. The hacker behind this massive theft, Ilya “Dutch” Lichtenstein, was sentenced to 5 years in prison by a federal court in Washington.

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A $10 Billion Heist

Lichtenstein and his wife, Heather Morgan, were arrested in 2022. In August 2023, the pair pleaded guilty to conspiracy to commit money laundering. At the time of the theft, the stolen cryptocurrencies were valued at $71 million, but with today’s prices, their worth has skyrocketed to over $10 billion.

Millions Laundered Using Sophisticated Techniques

hacker man typing on laptop, hacking computer system. male in mask and pullover. unrecognizable incognito male sit in hood and try to breach the security of laptop system. neon smoke in background

According to the U.S. Department of Justice, Lichtenstein and Morgan laundered millions of dollars using “numerous sophisticated money laundering techniques.” These included:

Using fake identities
Converting Bitcoins into other cryptocurrencies
Transferring funds through the darknet
Purchasing gold to obscure the trail

Despite the gravity of the crime, Lichtenstein’s 5-year sentence is significantly lower than the 20-year maximum sentence typically imposed for such offenses in the United States.

Heather Morgan Awaits Sentencing

Morgan is set to appear before a judge on November 18, where she is expected to receive an 18-month prison sentence.

This case highlights the increasing sophistication of cybercriminals and the ongoing challenges in securing the burgeoning cryptocurrency industry.