Ilya “Dutch” Lichtenstein was sentenced to five years in prison by a federal judge in Washington for stealing billions of dollars’ worth of bitcoin from the Bitfinex cryptocurrency exchange.

According to a Bloomberg report, Lichtenstein received his sentence from the Washington federal court on November 14. This punishment aligns with the prosecutors’ demands, who sought a harsher sentence for the Bitfinex hacker, while recommending a lighter 18-month sentence for his wife, social media rapper Heather “Razzlekhan” Morgan.

Reduced Sentence for Cooperation with Investigators
Under initial sentencing guidelines, Lichtenstein faced up to 20 years in prison. However, his sentence was reduced because he provided substantial assistance to investigators and served as a key witness in several cybercrime cases.

One of the cases in which he testified involved a money-laundering operation connected to a mixing service called Bitcoin Fog in February 2024.

The Theft of Nearly 120,000 Bitcoins from Bitfinex
Together with his wife, Lichtenstein hacked into Bitfinex and stole approximately 119,754 bitcoins. At the time of the theft, these bitcoins were valued at $71 million. However, due to the recent bitcoin rally, where the cryptocurrency’s price reached as high as $93,000, the stolen bitcoins are now worth over $10.5 billion. Currently, bitcoin is trading around $88,158.

Lichtenstein, described as a “highly skilled computer expert,” hacked into Bitfinex in 2016. He then authorized over 2,000 transactions to transfer the bitcoins into a cryptocurrency wallet he controlled. In addition to the Bitfinex hack, Lichtenstein has a history of compromising accounts on other major crypto platforms, including Coinbase and Kraken.

Morgan’s Role in Hiding the Stolen Bitcoins
Morgan claimed that she learned about her husband’s theft from Bitfinex in 2020. She then helped him hide the stolen bitcoins through various methods, including purchases of NFTs, gold, and Walmart gift cards.

Prosecutors also stated that the couple used sophisticated money-laundering techniques to make their funds untraceable. They reportedly withdrew and deposited funds on unregulated crypto exchanges and darknet markets.

Morgan Awaits Sentencing
Morgan is set to be sentenced on November 18. Like her husband, she may receive a reduced sentence due to her cooperation with authorities. However, she still faces up to five years in prison for conspiracy to defraud the United States.

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