Lichtenstein, the Bitfinex hacker, was sentenced to 5 years in prison after helping authorities with cybercrime investigations. His sentence was reduced due to his cooperation, though he faced up to 20 years initially.
Lichtenstein was sentenced by the Washington federal court on November 14, according to a Bloomberg report.
His sentence is consistent with the prosecutors’ request for a more “severe” punishment for the Bitfinex-hacker’s money laundering scheme, as opposed to his wife, social media rapper Heather “Razzlekhan” Morgan, who was recommended for an 18-month sentence.
Bitfinex Hacker Prison Sentence
The hacker was previously sentenced to a maximum of 20 years in prison, as per the sentencing guidelines. However, his sentence was reduced as a result of his role as a critical government witness in numerous cybercrime cases, which provided investigators with significant support.
In February 2024, Lichtenstein was a witness in a money-laundering trial that involved a blending service called Bitcoin Fog.
Lichtenstein, in conjunction with his rapper wife, infiltrated the cryptocurrency exchange Bitfinex and extracted approximately 119,754 Bitcoin. His Bitcoin trove was valued at $71 million at the time of robbery.
However, the cryptocurrency’s price has risen to a maximum of $93,000 in the past week, immediately following the release of the U.S. Consumer Price Index report, with the ongoing Bitcoin rally.
The extracted quantity of BTC by Lichtenstein is currently valued at over $10.5 billion, as per the current market price. At present, the price of bitcoin is $88,158.
Lichtenstein, a “highly skilled computer expert,” infiltrated the Bitfinex network in 2016. He then went on to authorize over 2,000 Bitcoin transactions into a cryptocurrency wallet that belonged to the infiltrator.
Lichtenstein has a history of compromising accounts on other prominent crypto platforms, such as Kraken and Coinbase, in addition to the Bitfinex hack.
Morgan asserted that she was informed of her husband’s Bitfinex theft in 2020. Subsequently, she assisted him in concealing the stolen Bitcoin by purchasing NFTs, bullion, and Walmart gift cards.
Furthermore, prosecutors assert that the couple employed sophisticated money-laundering techniques to render their funds untraceable. They have been observed to withdraw and deposit funds from unregulated crypto exchanges and darknet markets.
Morgan is scheduled to receive her sentence on November 18. Morgan’s sentence may be reduced as a result of her cooperation, similar to that of her spouse. However, she is also subject to a maximum sentence of five years in prison for conspiring to defraud the United States.
