Bitfinex Hack: Guilty Pleas and Seized Bitcoin
Heather Rhiannon Morgan (aka “Razzlekhan”, 33) and her husband Ilya “Dutch” Lichtenstein (35) have pleaded guilty to their involvement in the 2016 Bitfinex hack, which resulted in the theft of over 119,756 Bitcoin (BTC).
Key Points:
– Lichtenstein admitted to both hacking and laundering the stolen funds, revealing the details of the sophisticated techniques he used to gain access to Bitfinex’s network.
– Morgan assisted her husband in laundering the stolen funds and covering his tracks, utilizing methods such as fictitious identities, darknet markets, chain hopping, and cryptocurrency mixing services.
– Some popular crypto mixers, like Blender and Tornado Cash, have already faced sanctions from the U.S. Treasury Department.
– Lichtenstein converted some of the stolen crypto into gold coins, which were later buried by Morgan. The location of the buried coins has been revealed to law enforcement officials.
– Lichtenstein also converted some of the stolen crypto into cash through intermediaries during his travels to Ukraine and Russia. He physically collected the cash at addresses in both countries and deposited it into U.S. accounts for later retrieval in New York City.
The Sentence:
Lichtenstein faces a maximum sentence of 20 years in prison, while Morgan faces a maximum sentence of 5 years. The couple was arrested in February 2022, and the majority of their stolen Bitcoin, worth $3.6 billion at the time, has been seized by the government.
Closing Thoughts:
This case marks a significant milestone in the resolution of one of the largest Bitcoin thefts in history. With the cooperation of Bitfinex and the Department of Justice, the stolen funds have been recovered, and the perpetrators are being held accountable for their actions.
Source: CoinDesk
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