November 15, 2024 at 09:14AM
Ilya Lichtenstein has been sentenced to five years in prison for stealing nearly 120,000 Bitcoin from Bitfinex in 2016, worth about $69 million at the time. He and his wife, Heather Morgan, also pleaded guilty to laundering the stolen proceeds. Their assets will be forfeited to the US government.
### Meeting Takeaways:
1. **Sentencing Details**:
– Ilya Lichtenstein was sentenced to five years in prison for stealing approximately 120,000 Bitcoin (valued at $69 million at the time) from the crypto exchange Bitfinex in 2016.
– His wife, Heather Morgan, also known as Razzlekhan, pleaded guilty to laundering the proceeds and is scheduled for sentencing on November 18, after being under house arrest for 33 months.
2. **Background of the Crime**:
– Lichtenstein conducted the Bitfinex attack after leaving his co-founded marketing company, MixRank, due to a disagreement.
– The attack involved over 2,000 transactions, with efforts taken to erase digital traces post-attack.
3. **Laundering Activities**:
– Both Lichtenstein and Morgan used sophisticated techniques to launder the stolen Bitcoin, including:
– Creating online accounts with fake IDs.
– Automating transactions via software.
– Depositing funds into dark web marketplaces.
– Converting Bitcoin to other cryptocurrencies and using mixer services.
– Establishing legitimate business accounts to mask their illegal activities.
4. **Personal Background**:
– Morgan and Lichtenstein met in 2013 at a venture capital tech accelerator and were married in 2019.
– Morgan, an entrepreneur, started a cold email campaign business called SalesFolk in 2014.
5. **Asset Forfeiture**:
– As part of their guilty pleas, the couple agreed to forfeit all assets related to their crime, which include various cryptocurrencies, fiat currencies, and gold coins.
– Current value of the stolen Bitcoin would be around $10.7 billion if calculated at today’s rates.
6. **Incident During Seizure**:
– An unnamed cybercriminal attempted to hijack $20.7 million worth of cryptocurrency during the government’s conversion efforts. While they managed to steal some tokens, a significant portion was frozen and eventually returned to the government, incurring losses of around $200,000 in blockchain fees.
### Action Items:
– Monitor the upcoming sentencing date for Heather Morgan.
– Review the implications of the asset forfeiture and potential effects on cryptocurrency regulations.
– Stay informed on any developments regarding cybercrime related to seized funds.