Ilya Lichtenstein and Heather Morgan have confessed to stealing around 120,000 Bitcoin from crypto exchange Bitfinex. They were arrested in February 2022 while attempting to launder the funds, worth approximately $4 billion. German investigative authorities were also involved in the investigation. The couple are now facing long prison sentences.
Up to 20 years for Bitfinex hackers
The case, one of the biggest crypto hacks in history, made headlines around the world. The stock market was attacked as early as 2016, and in the spring of last year the couple was caught by investigators. “After seven years, these efforts have now borne fruit,” a Bitfinex spokesperson told BTC-ECHO. During this time, they worked closely with the US Department of Justice.
read too
Among other things, the accused are said to have tried to cover up traces with the help of so-called crypto-mixers. Ultimately, this caught the attention of investigators. The Ansbach police were also involved.
The investigation is “a prime example of how blockchain analysis combined with traditional financial investigative techniques can enable law enforcement agencies to solve cryptocurrency-related crimes, secure convictions, and seize stolen funds,” Chainalysis said in a press release BTC- ECHO is present. The blockchain analysis company was also involved in the investigation.
Lichtenstein pleaded guilty to conspiracy to launder money. He faces up to 20 years in prison. Morgan pleaded guilty to one count of money laundering conspiracy and one count of conspiracy to defraud the United States. The maximum penalty is five years in prison.
read too
Parts invested in gold coins
According to court documents Lichtenstein used “a series of advanced hacking tools and techniques to gain access to Bitfinex’s network.” He is said to have penetrated the systems and authorized “more than 2,000 transactions”. “119,754 Bitcoin were transferred from Bitfinex to a crypto wallet controlled by Lichtenstein”. He then hooked up with Bitfinex to cover the tracks. His wife Morgan, who pursued a moderately successful rap career as “Razzlekhan,” is then said to have helped launder the stolen funds.
The couple are said to have used “numerous sophisticated techniques, including the use of fictitious identities to set up online accounts”. Funds are said to have been transferred to accounts in darknet markets, stolen Bitcoin exchanged for other cryptocurrencies and laundered via crypto mixers. A portion was also invested in gold coins that were buried, according to the Justice Department.
You might also be interested in this