US Prosecutors Seek 5-Year Sentence for Ilya Lichtenstein in $6 Billion Bitfinex Crypto Hack

US prosecutors have requested a shorter 5-year jail term for Ilya Lichtenstein, who spearheaded the $6 billion Bitfinex hack.

Lichtenstein and his wife, Heather Morgan, pleaded guilty to a money laundering scheme linked to the $6 billion hack of crypto exchange Bitfinex.

Notably, Lichtenstein assists prosecutors in solving other criminal cases.

Ilya Lichtenstein Faces Five-Year Sentence as Bitfinex Hack Case Unfolds

Prosecutors have asked a Washington district court judge to sentence Ilya Lichtenstein to at least five years in prison.

This is part of the ongoing case relating to the $6 billion hack of the Bitfinex crypto exchange against him in the US. This hack was one of the biggest crypto heists in history. Along with this sentence, the prosecutors filed a document to seize properties connected to the crime.

Last week, the court received a request for Heather Morgan, also known as Razzlekhan, to be sentenced. Morgan is an accomplice in the crime, working alongside her husband, Ilya Lichtenstein, to orchestrate the hack.

Prosecutors requested that Morgan get 18 months in prison, followed by three years of supervised release. However, her husband, Ilya Lichtenstein, who admitted his guilt last year, is facing a longer sentence. The US government believes he should spend more time in prison than Morgan.

According to the prosecutors who explained in a new court filing, harsh sentences would deter others from committing such crimes.

In 2016, Ilya Lichtenstein led the attack on Bitfinex, a major crypto exchange. During this hack, he stole a large amount of money. Using the help of his wife, Heather Morgan, also known as Razzlekhan, he laundered the stolen money.

Morgan later admitted that she helped Lichtenstein hide the stolen crypto. She continued to help him even after learning in 2020 that her husband was responsible for the hack.

Currently, Ilya Lichtenstein is helping the US government with other criminal cases. Because of this, prosecutors asked for a shorter prison sentence for him as his cooperation has been valuable.

Earlier this year, Lichtenstein gave testimony in a money-laundering trial. The case involved a crypto mixer called Bitcoin Fog, which hides the source of a cryptocurrency.

Lichtenstein's testimony helped the government in this case. His assistance is one of the reasons the government is asking for less time in prison for him.

Roman Sterlingov, a dual citizen of Russia and Sweden, is facing serious charges. Prosecutors accuse him of running Bitcoin Fog, which could help people launder money and avoid detection.

Authorities believe Sterlingov played a crucial role in illegal activities involving large sums of money. Due to this, he is now facing a possible 30-year prison sentence.

This punishment reflects the severity of the money-laundering charges against him and the impact of his actions on the crypto world.

How Lichtenstein and Morgan Laundered Funds Stolen from the Bitfinex Hack

Lichtenstein and Morgan used advanced methods to hide their illegal money; they wanted to cover their tracks after the Bitfinex hack. One technique was depositing and withdrawing funds from different crypto exchanges.

They also used darknet markets, which are hidden parts of the internet where illegal activities occur. According to a Bloomberg report, the couple used the stolen money for several purchases. They bought non-fungible tokens (NFTs), which are unique digital items.

They also purchased gold and Walmart gift cards. These actions helped them disguise the source of their stolen funds.

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