Kofi Mensah In a surprising disclosure, 35-year-old Ilya Lichtenstein has admitted to being the original hacker behind the massive 2016 cyberattack on Bitfinex, a cryptocurrency exchange, which resulted in the theft of approximately $4.5 billion worth of bitcoin. Lichtenstein made this revelation during a court hearing in Washington, D.C., where he also pleaded guilty to charges related to money laundering the stolen bitcoin. Notably, his wife, Heather Morgan, also pleaded guilty to associated offenses.
The hacker’s identity had remained a mystery until this recent court admission. Although not directly charged with the hack itself, Lichtenstein could face a maximum sentence of 20 years in prison for conspiracy to commit money laundering, while his wife, known as “Razzlekahn,” may be sentenced to up to five years. The couple’s involvement in the hack and subsequent laundering of the funds is now publicly disclosed, leading to potentially significant prison time for both of them.
Following the arrests in February 2022, the Department of Justice (DOJ) managed to seize more than 94,000 bitcoin out of the over 119,000 that were initially stolen. Additional assets worth $475 million connected to the hack have also been confiscated. The DOJ explained that Lichtenstein used sophisticated hacking tools and techniques to gain access to Bitfinex’s network, allowing him to fraudulently authorize over 2,000 transactions transferring 119,754 bitcoin to his control.
Morgan actively participated in laundering the stolen funds, with around 25,000 bitcoin being moved from Lichtenstein’s wallet through a complex money laundering process, eventually ending up in accounts controlled by the couple. In their investigation, authorities discovered that the couple even converted some of the assets into gold coins, which Morgan hid at a location known to law enforcement.
Further investigation revealed that Lichtenstein traveled to Ukraine and Kazakhstan, where he converted digital assets to cash through Russian and Ukrainian intermediaries before having it shipped to addresses where he could retrieve it.
Interestingly, the high-profile court case of the crypto couple coincided with the charges brought against former President Donald Trump, leading to a rescheduling of the court proceedings.
Share your thoughts and opinions on Lichtenstein’s admission to hacking Bitfinex in 2016 in the comments section below.
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Frequently Asked Questions (FAQs) about Bitcoin hack
Q: Who confessed to being the hacker behind the 2016 Bitfinex hack?
A: Ilya Lichtenstein, a 35-year-old man, made the unexpected revelation that he was the original hacker behind the 2016 cyberattack on Bitfinex.
Q: What was the value of the bitcoin theft in the 2016 Bitfinex hack?
A: The theft in the 2016 Bitfinex hack was once worth $4.5 billion.
Q: What charges did Ilya Lichtenstein and his wife, Heather Morgan, plead guilty to?
A: Ilya Lichtenstein pleaded guilty to one count of conspiracy to commit money laundering, while his wife, Heather Morgan, pleaded guilty to related charges.
Q: How much bitcoin did the Department of Justice (DOJ) seize in connection with the hack?
A: The DOJ seized over 94,000 bitcoin out of the more than 119,000 that were hacked, worth billions at the time of arrest in February 2022.
Q: What role did Heather Morgan play in the laundering of the stolen funds?
A: Heather Morgan actively assisted her husband in laundering the stolen funds and was involved in transferring around 25,000 stolen bitcoin through a complex money laundering process.
Q: What other assets did the couple convert during the laundering process?
A: The couple converted some of the stolen assets into gold coins, which Heather Morgan buried at a location known to law enforcement.
Q: How did Ilya Lichtenstein convert digital assets to cash?
A: Ilya Lichtenstein traveled to Ukraine and Kazakhstan, where he converted digital assets to cash through Russian and Ukrainian intermediaries before having it shipped to addresses where he could retrieve it.
Q: What was the significance of the court revelation regarding the hacker’s identity?
A: The court revelation marked the first time the identity of the hacker behind the 2016 Bitfinex hack was disclosed to the public.
Q: How long could Ilya Lichtenstein and Heather Morgan be sentenced to in prison?
A: Lichtenstein faces a maximum of 20 years in prison for conspiracy to commit money laundering, while Morgan could face up to five years for related charges.
Q: What other charges were filed against Ilya Lichtenstein and Heather Morgan?
A: Although not charged directly with the hack itself, they both faced charges related to money laundering and involvement in the cyberattack on Bitfinex.
More about Bitcoin hack
- “Ilya Lichtenstein Confesses to 2016 Bitfinex Hack” – Link
- “Department of Justice Seizes Bitcoin in Connection to Hack” – Link
- “Crypto Couple’s Involvement in Money Laundering Revealed” – Link
