U.S. Hacker Sentenced Over Bitcoin Heist Worth Billions

A hacker has been sentenced to five years in a U.S. prison for laundering the proceeds of one of the largest cryptocurrency thefts in history.

The $3.6 billion worth of assets recovered in the case marked the largest financial seizure in the history of the Department of Justice.

Ilya Lichtenstein pleaded guilty last year in a case involving the 2016 hack of the Bitfinex cryptocurrency exchange, which resulted in the theft of nearly 120,000 bitcoin, Peter Hoskins reported for BBC News.

Lichtenstein laundered the stolen cryptocurrency with the help of his wife, Heather Morgan, who used the alias "Razzlekhan" to promote her hip-hop music.

At the time of the theft, the bitcoin was worth around $70 million (£55.3 million) but had risen in value to over $4.5 billion by the time they were arrested. At today's prices, the stolen bitcoin would be worth more than double that amount.

The $3.6 billion worth of assets recovered in the case marked the largest financial seizure in the history of the Department of Justice, Deputy Attorney General Lisa Monaco stated at the time.

“It’s important to send a message that you can’t commit these crimes with impunity, that there are consequences to them,” said District Judge Colleen Kollar-Kotelly.

Lichtenstein, who has been in prison since his arrest in February 2022, expressed remorse for his actions. He also stated his intention to apply his skills to combat cybercrime after serving his sentence.