A hacker has been sentenced to 5 years in a US jail for laundering the proceeds of one of many largest ever cryptocurrency thefts.
Ilya Lichtenstein pleaded responsible final 12 months within the case involving the Bitfinex cryptocurrency trade being hacked in 2016 and the theft of just about 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 price round $70m (£55.3m), however had risen in worth to greater than $4.5bn by the point of they have been arrested. At right this moment’s costs they might be price greater than double that.
The $3.6bn price of belongings recovered within the case was the largest monetary seizure within the DOJ’s historical past, deputy legal professional Normal Lisa Monaco stated on the time.
“It’s necessary to ship a message which you can’t commit these crimes with impunity, that there are penalties to them,” district decide 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 battle cybercrime after serving his sentence.
Morgan additionally pleaded responsible final 12 months to at least one 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 methods to hack into Bitfinex.
Following the hack, he enlisted Morgan’s assist to launder the stolen funds.
They “employed quite a few refined laundering methods”, the US Division of Justice (DoJ) stated in an announcement.
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 residence, 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 revealed dozens of expletive-filled music movies and rap songs filmed in places round New York.
In her lyrics she known as herself a “bad-ass cash maker” and “the crocodile of Wall Road”.
In articles revealed in Forbes journal, Morgan additionally claimed to be a profitable expertise businesswoman, calling herself an “economist, serial entrepreneur, software program investor and rapper”.
