A hacker has been sentenced to five years in a U.S. prison for laundering proceeds from one of the largest cryptocurrency thefts on record.
Ilya Lichtenstein pleaded guilty last year in connection with the 2016 hack of the Bitfinex cryptocurrency exchange, which resulted in the theft of nearly 120,000 bitcoin.
He laundered the stolen funds with the assistance of his wife, Heather Morgan, who promoted her hip-hop music under the alias Razzlekhan.
At the time of the theft, the bitcoin was valued at approximately $70 million (£55.3 million), but by the time of their arrest, its worth had increased to over $4.5 billion.
At today’s rates, the value would be more than double that amount.
The $3.6 billion in assets recovered in the case marked the largest financial seizure in the Department of Justice’s history, as noted by Deputy Attorney General Lisa Monaco.
“It’s important to send a message that you can’t commit these crimes with impunity, that there are consequences to them,” district judge Colleen Kollar-Kotelly said.
Lichtenstein, who has been incarcerated since his February 2022 arrest, expressed regret for his actions and shared his intention to use his skills to combat cybercrime after completing his sentence.
Morgan, who also pleaded guilty last year to a charge of conspiracy to commit money laundering, is scheduled for sentencing on November 18.
According to court records, Lichtenstein used sophisticated hacking tools and techniques to infiltrate Bitfinex, and afterward, he enlisted Morgan’s help in laundering the stolen funds.
The Department of Justice stated that they “employed numerous sophisticated laundering techniques,” including the use of fake identities, converting funds into various cryptocurrencies, and purchasing gold coins.
Prosecutors noted that Lichtenstein, originally from Russia but raised in the U.S., would meet with couriers during family trips to transfer the laundered funds back home.
Morgan’s online persona, Razzlekhan, went viral on social media as the case gained attention.
Despite their attempts to cover up the hack, she continued releasing expletive-laden music videos and rap songs filmed in various New York locations.
In her lyrics she called herself a “bad-ass money maker” and “the crocodile of Wall Street”.
In articles published in Forbes magazine, Morgan also claimed to be a successful technology businesswoman, calling herself an “economist, serial entrepreneur, software investor and rapper”.