US authorities are advocating for a five-year prison term for Ilya “Dutch” Lichtenstein, who confessed to stealing 120,000 Bitcoin
$67,128.75
from the Bitfinex
$176.22M
cryptocurrency exchange in 2016.
Although his guilty plea for conspiracy to commit money laundering could warrant a 20-year sentence, prosecutors believe a reduced term is justified due to his lack of prior criminal activity and assistance in probes.
Earlier, prosecutors suggested an 18-month jail sentence for Heather “Razzlekhan” Morgan, Lichtenstein’s wife and accomplice, citing her cooperation in the investigation.
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Despite recommending a reduced term overall, prosecutors are asking for a longer sentence for Lichtenstein than for his wife. They pointed out that he spent months planning the theft and was involved in other crimes, including stealing $200,000 from another crypto exchange.
The two laundered around 25,111 Bitcoin out of the 120,000 stolen, worth $71 million at the time. Initially, both were suspected of only laundering the stolen funds, but Lichtenstein later confessed to being the hacker.
The authorities are asking the court to order Lichtenstein and Morgan to return the remaining cryptocurrency from his wallet to Bitfinex. This includes about 95,000 Bitcoin, 117,400 Bitcoin Cash
$365.46
, 117,400 Bitcoin SV
$49.43
, and 118,100 Bitcoin Gold
$23.52
, now worth over $6 billion.
Lichtenstein’s sentencing is set for November 14, with Morgan’s to follow on November 15.
This case reminds us of the growing threat of cybercrime and the need for tough penalties to address such serious offenses.
In other news, four crypto companies and 18 associated individuals have recently been charged with fraud and market manipulation.
