Ilya Lichtenstein, the hacker involved in one of the largest cryptocurrency thefts in history, has been sentenced to five years in prison for laundering the stolen funds. Lichtenstein, who pleaded guilty last year, was part of the operation that targeted the Bitfinex cryptocurrency exchange in 2016, stealing nearly 120,000 bitcoins.
At the time of the theft, the stolen bitcoins were valued at approximately $70 million (£55.3 million), but their value soared to over $4.5 billion by the time the couple was apprehended. At current market prices, the stolen funds would be worth more than double that amount. The total value of the assets recovered during the investigation—$3.6 billion—marked the largest financial seizure in the history of the U.S. Department of Justice (DOJ), as noted by Deputy Attorney General Lisa Monaco.
In a statement, District Judge Colleen Kollar-Kotelly emphasized the importance of holding criminals accountable, saying, “It’s important to send a message that you can’t commit these crimes with impunity, that there are consequences to them.”
Lichtenstein, who has been in custody since his arrest in February 2022, expressed regret for his actions and hopes to use his technical skills in the future to help combat cybercrime.
His wife, Heather Morgan, who used the alias “Razzlekhan” to promote her hip-hop music, also pleaded guilty to conspiracy charges related to money laundering. She is scheduled to be sentenced on November 18, 2024.
Court documents revealed that Lichtenstein, who was born in Russia and raised in the United States, employed advanced hacking tools to access the Bitfinex exchange. After the hack, he worked with Morgan to launder the stolen bitcoins using various sophisticated methods, including fictitious identities, converting the stolen funds into different cryptocurrencies, and purchasing gold coins.
The couple also used couriers during their international trips to move the laundered money. The U.S. DOJ highlighted the complex nature of the laundering scheme, which employed numerous tactics to disguise the origins of the funds.
Heather Morgan posted hip hop videos under the alias Razzlekhan
Heather Morgan, who adopted the persona “Razzlekhan,” gained viral attention on social media after the hacking case came to light. Despite her and her husband’s efforts to cover up their involvement in the cryptocurrency theft, Morgan continued to release a series of provocative rap videos. These music videos, filled with expletive-laden lyrics, were filmed in various locations across New York.
In her songs, Morgan boldly referred to herself as a “bad-ass money maker” and dubbed herself “the crocodile of Wall Street.”
Additionally, Morgan cultivated an image of herself as a successful entrepreneur in her public appearances, particularly in articles she wrote for Forbes magazine. There, she portrayed herself as an accomplished businesswoman, claiming to be an “economist, serial entrepreneur, software investor, and rapper.”
SOURCE: http://adomonline.com
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