U.S. prosecutors are asking for a five-year prison sentence for Ilya Lichtenstein, the hacker behind the 2016 hack of the Bitfinex cryptocurrency exchange. Lichtenstein stole around 120,000 Bitcoin during the hack. It was worth $71 million at the time, but now it’s worth $6 billion.
Last year, the hacker pleaded guilty to the crime after he was arrested in 2022, along with his wife, Heather Morgan, who helped him hide the stolen funds. While Lichtenstein was the main person responsible, prosecutors are recommending a shorter, 18-month sentence for Morgan.
According to a report from Bloomberg, the prosecutors claimed she only learned about the hack in 2020 and has been cooperating with the authorities.
However, in the filing sent to the U.S. District Court of Columbia, the prosecutors argued that Lichtenstein should get a tougher sentence than Morgan because he planned the hack. They said giving him more time would help deter other young cybercriminals who think such crimes are trivial.
After the hack, Lichtenstein transferred the stolen Bitcoin to a self-custody wallet and laundered 25,000 Bitcoin through darknet markets and unregulated virtual exchanges like Bitcoin Fog, Helix, and ChipMixer.
Prosecutors stated that he used the stolen funds to buy non-fungible tokens (NFTs), gold, and even Walmart gift cards. Lichtenstein’s sentencing is scheduled for Nov. 14, and Morgan’s the day after.
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