A hacker has been sentenced to 5 years in a US jail for laundering the proceeds of one of many greatest ever cryptocurrency thefts.
Ilya Lichtenstein pleaded responsible final yr within the case involving the Bitfinex cryptocurrency change being hacked in 2016 and the theft of virtually 120,000 bitcoin.
He laundered the stolen cryptocurrency with the assistance of his spouse Heather Morgan, who used the alias Razzlekhan to advertise her hip hop music.
On the time of the theft, the bitcoin was worth round $70m (£55.3m), however had risen in worth to greater than $4.5bn by the point they have been arrested. At in the present day’s costs they might be worth greater than double that.
The $3.6bn worth of property recovered within the case was the largest monetary seizure within the Division of Justice’s historical past, Deputy Lawyer Normal Lisa Monaco stated on the time.
“It’s essential to ship a message that you may’t commit these crimes with impunity, that there are penalties to them,” district choose Colleen Kollar-Kotelly stated.
Lichtenstein, who has been in jail since his arrest in February 2022, expressed regret for his actions.
He additionally stated that he hopes to use his expertise to struggle cybercrime after serving his sentence.
Morgan additionally pleaded responsible final yr to 1 rely of conspiracy to commit cash laundering. She is because of be sentenced on 18 November.
In accordance courtroom paperwork, Lichtenstein used superior hacking instruments and strategies to hack into Bitfinex.
Following the hack, he enlisted Morgan’s assist to launder the stolen funds.
They “employed quite a few subtle laundering strategies”, the Department of Justice said in a statement.
The strategies included utilizing fictitious identities, switching the funds into totally different cryptocurrencies and shopping for gold cash.
Lichtenstein, who was born in Russia however grew up within the US, would then meet couriers whereas on household journeys and transfer the laundered a refund house, prosecutors stated.
Morgan’s Razzlekhan persona went viral on social media when the case emerged.
Even because the couple tried to cowl up the hack, she printed dozens of expletive-filled music movies and rap songs filmed in places round New York.
In her lyrics she referred to as herself a “bad-ass cash maker” and “the crocodile of Wall Road”.
In articles printed in Forbes journal, Morgan additionally claimed to be a profitable expertise businesswoman, calling herself an “economist, serial entrepreneur, software program investor and rapper”.
