Ilya Lichtenstein, the hacker responsible for one of the largest cryptocurrency thefts in history, has been sentenced to five years in prison for money laundering linked to the 2016 hack of the cryptocurrency exchange Bitfinex.
Lichtenstein had pleaded guilty last year for stealing nearly 120,000 Bitcoin, which were worth approximately $70 million at the time but had grown to over $4.5 billion by the time of his arrest in 2022. Their value has since doubled.
Lichtenstein used advanced tools and techniques to infiltrate Bitfinex’s system, while his wife, Heather Morgan, known by the alias “Razzlekhan,” helped launder the stolen cryptocurrency. Morgan, who had presented herself as an “artist and entrepreneur,” was involved in hiding the proceeds from the theft.
The largest seizure in U.S. history
The U.S. Department of Justice announced that it had recovered $3.6 billion from the case, marking the largest financial seizure in the country’s history. “It is important to send a message that such crimes have consequences,” said Judge Colleen Kollar-Kotelly.
Lichtenstein expressed remorse during the trial, stating that he hoped to use his skills to combat cybercrime after serving his sentence. His wife, Morgan, who also pleaded guilty to money laundering conspiracy, is set to be sentenced on November 18.
Sophisticated money laundering techniques
According to prosecutors, the couple used complex methods to hide the stolen funds. Their techniques included creating fake identities, converting Bitcoin into other cryptocurrencies, and even purchasing gold coins. Lichtenstein would meet couriers during family trips to move the laundered money back to the U.S.
The “Crocodile of Wall Street” and her double life
Morgan, known as “Razzlekhan,” gained attention on social media for her rap videos and lyrics, where she self-identified as a “fantastic money maker” and “Crocodile of Wall Street.” At the same time, she portrayed herself as a successful entrepreneur, writing for Forbes as an “economist entrepreneur and software investor.”
The couple’s double life and their arrest shed light on a case that blends technology, fraud, and creative self-promotion, while Lichtenstein’s conviction marks the end of one of the biggest scandals in the cryptocurrency world.
