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Bitfinex Hacker Ilya Lichtenstein Should Serve 5 Years in Prison, DOJ Says

Prosecutors have requested that Ilya “Dutch” Lichtenstein, who pleaded guilty last year to the 2016 hack of crypto exchange Bitfinex, should spend five years behind bars for his crime.Lichtenstein and his wife, Heather “Razzlekhan” Morgan, were arrested in Manhattan in February 2022 and charged with conspiring to launder nearly 120,000 bitcoins stolen during the hack. Though Lichtenstein and Morgan were first believed to only have laundered the proceeds of the hack (worth approximately $7.5 billion at today’s value), Lichtenstein later admitted to being the original hacker.UnmuteMoneyGram Announces Its Latest: MoneyGram Wallet

01:31Bitcoin ETFs Are "Trojan Horse for Adoption": Bernstein02:28Trump Pumps DeFi Token Sale; Bitcoin Price Jumps Above $65K01:25Trump-Themed Tokens Surge, Bitcoin Forecast to Jump After U.S. Elections02:08Cumberland, Bitnomial Lawsuits vs. SEC, Nigeria Denies Bail for US Compliance OfficerAccording to court documents, the couple successfully laundered 25,111 bitcoins – or 21% of the total pile Lichtenstein stole from Bitfinex – using a complex web of Eastern European bank accounts and bitcoin mixing services to hide the origin of the funds. Prosecutors told the judge that Lichtenstein and Morgan employed “the most complicated money laundering techniques [IRS agents] had seen to date.”

In August 2023, Lichtenstein pleaded guilty to one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. Morgan pleaded guilty to one count of money laundering conspiracy, a less serious money laundering offense with a five year maximum sentence, as well as one count of conspiracy to defraud the United States, which also has a five year maximum sentence.Last week, prosecutors suggested that Morgan – who, according to court documents, did not know about her husband’s theft until 2020, when he enlisted her help to launder the coins – should serve only 18 months behind bars.

Prosecutors have asked the judge to go harder on Lichtenstein, however, who they argue spent months devising a scheme to gain access to Bitfinex’s systems and carry out his attack. They also point out that, while Lichtenstein has no official criminal history, he “experimented with other hacking and financial fraud activity” beginning as a juvenile. In 2016, before he hacked Bitfinex, Lichtenstein stole approximately $200,000 from another crypto exchange.In their sentencing memo, prosecutors urged the judge to mete out a “strong sentence” for Lichtenstein in order to deter other “juveniles starting to head down a path similar to [Lichtenstein’s].”

“Unfortunately, the defendant fits the profile of many cyber criminal defendants that the government has encountered. Many of these individuals start out as young men who develop impressive technical expertise from an early age. As teens, they feel socially isolated and seek out community online. They are exposed to criminal activity in those online spaces, and the activity is normalized in a way that trivializes the impact on the victims. They begin dabbling in online crime as juveniles, and become emboldened by their success – both in perpetrating the crime, and in not getting caught,” prosecutors wrote.

“The criminal activity escalates, as they feel invincible and pursue new challenges. Anecdotally, self-medication and abuse of ADHD medication often appear to fuel the activity in many cyber crime cases the government has prosecuted. The difficulty faced by law enforcement in detecting and prosecuting lower-level cyber crimes often leads to a sense of impunity among perpetrators, leading – as here – to a pattern of increasingly serious and harmful criminal activity. A strong sentence in this case will help to break this cycle," the filing said.Prosecutors said that they believe Lichtenstein’s risk of recidivism is low, citing his age at the time of the crime and the fact that he was “abusing Adderall at the time of the offense, which may have contributed to the activity.”

“The government believes that the defendant will be able to use his considerable skill sets for legitimate ends, and hopes that he will make positive contributions to the cybersecurity and anti-money laundering industries following his sentence,” prosecutors wrote.As part of his guilty plea, Lichtenstein already agreed to forfeit all the proceeds of his crime.Lichtenstein is set to be sentenced on Nov. 14 at 2:00 p.m. in Washington, D.C. Morgan will be sentenced 24 hours later.Edited by Nikhilesh De.

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  • 14.10.25 08:46 robertalfred175

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  • 15.10.25 18:07 crypto

    Cryptocurrency's digital realm presents many opportunities, but it also conceals complex frauds. It is quite painful to lose your cryptocurrency to scam. You can feel harassed and lost as a result. If you have been the victim of a cryptocurrency scam, this guide explains what to do ASAP. Following these procedures will help you avoid further issues or get your money back. Communication with Marie ([email protected] and WhatsApp: +1 7127594675) can make all the difference.

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

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