The pair, Ilya Lichtenstein and Heather Morgan, who were apprehended last year in connection with the grand-scale Bitfinex cryptocurrency breach in 2016 involving billions in digital currency, have conceded guilt in the courtroom. Lichtenstein confessed to employing an array of sophisticated hacking strategies and tools to infiltrate the cryptocurrency exchange’s network. He authorized the transfer of 119,754 bitcoins across 2,000 transactions to wallets he owned. To conceal his actions, he eliminated access codes, logs, and other digital clues that could potentially expose him. Morgan, his spouse, was complicit in shifting and laundering the looted funds.
As a reminder, the Justice Department successfully confiscated 95,000 of the stolen bitcoins at the time they were taken into custody. At that juncture, the cache of digital currency amounted to a staggering $3.6 billion, marking the largest financial confiscation in the department’s history. Since then, law enforcement has managed to track down more of the stolen wealth, recovering an additional $475 million in cryptocurrency.
Per the DOJ, Lichtenstein and Morgan created fictitious identities to open online accounts on darknet platforms and cryptocurrency exchanges. They subsequently withdrew and dispersed the bitcoins from these platforms by converting them into different digital currencies and storing them in crypto mixing services. This process effectively obscured the origin of the coins and rendered them more difficult to trace. Additionally, the duo established businesses in the US to lend a veneer of legitimacy to their banking operations — Morgan even maintained a TikTok account where she touted the creation of a “multimillion dollar business” with “zero outside funding”. It appears the ill-gotten funds were also used to buy physical gold coins, which Morgan then concealed by burying.
In terms of specific charges, Lichtenstein has pleaded guilty to a conspiracy to commit money laundering charge, and he faces a maximum sentence of 20 years. Morgan, on the other hand, has admitted guilt to a count of money laundering conspiracy and a count of conspiracy to defraud the United States, each of which carries a potential maximum sentence of five years.
Frequently Asked Questions (FAQs) about Bitfinex hack
Who pleaded guilty to the Bitfinex cryptocurrency theft involving billions of dollars?
Ilya Lichtenstein and Heather Morgan, the couple arrested for the Bitfinex hack in 2016, have pleaded guilty. Lichtenstein admitted to hacking into the cryptocurrency exchange’s network and stealing 119,754 bitcoins. His wife, Morgan, assisted in moving and laundering the stolen funds.
What measures did the couple take to cover their tracks?
Lichtenstein deleted access credentials, logs, and other digital evidence that could link him to the theft. The couple used false identities to set up accounts on darknet markets and cryptocurrency exchanges, from where they dispersed the bitcoins. They converted the bitcoins into different cryptocurrencies and stored them in crypto mixing services to make them harder to trace. They also established businesses in the US to make their banking activities appear legitimate and used the stolen money to purchase physical gold coins, which Morgan then buried.
What was the value of the bitcoins seized by the Justice Department at the time of the couple’s arrest?
At the time of their arrest, the Justice Department seized 95,000 of the stolen bitcoins, which were worth about $3.6 billion.
What charges have Lichtenstein and Morgan pleaded guilty to and what are the potential sentences?
Lichtenstein has pleaded guilty to conspiracy to commit money laundering and could face up to 20 years in prison. Morgan has admitted guilt to a count of money laundering conspiracy and a count of conspiracy to defraud the United States, each of which carries a potential maximum sentence of five years.
More about Bitfinex hack
- The story of the Bitfinex Hack
- Understanding Cryptocurrency Hacking
- About Money Laundering
- Understanding Darknet Markets
- About Crypto Mixing Services
4 comments
Never understood why peeps do this. Did they really think they’d get away with it in the end? I mean, laundering billions! Just unreal.
Can’t wrap my head around it… billions! They could have done so much good in the world with that kinda skill set, but they chose to steal instead. What a waste.
Woah, this is insane! Can’t believe they managed to steal so much. And then, they actually admitted to it! Gotta admit, they had some balls. Bet they’re regretting it now though…
The audacity, right? Like they were just moving Monopoly money around. And the TikTok? That’s just too rich!