The US hacker was jailed for five years in U.S. prison for laundering cryptocurrency۔ The hacker, Ilya Lichtenstein, pleaded guilty last year, admitting he laundered nearly 120,000 stolen bitcoin that were taken during the 2016 hacking of the Bitfinex cryptocurrency exchange.The bitcoin was valued at $70 million at the time of the hack and surged by the time Lichtenstein was arrested in 2022 to $4.5 billion.
The U.S. Department of Justice has seized $3.6 billion in stolen assets, a sum considered its highest financial recovery in history. According to District Judge Colleen Kollar-Kotelly, accountability is key as “These crimes have consequences.”
Hacker Jailed for $4.5B Bitcoin Laundering: How Did he Do it?
Lichtenstein, using sophisticated hacking software, compromised Bitfinex and enlisted the help of his wife, Heather Morgan in laundering the funds. Morgan, known for her alter ego “Razzlekhan,” which is meant to create buzz around her fledgling rap music career, pleaded guilty to money laundering charges and remains sentenced on November 18.
The pair utilized these high-tech means to cover their trails. They used counterfeit identities, transmitted the proceeds into different cryptocurrencies, and purchased gold coins. Lichtenstein also smuggled the laundered money by keeping appointments with couriers in person during family vacations.
However, her efforts to cover up her crimes did not protect her from Internet fame as an odd rap artist with another persona. She referred to herself as the “Crocodile of Wall Street,” releasing a series of video releases in which she boasted about cash and flourishing businesses. In her songs, she referred to herself as a “bad-ass money maker.” She also wrote for *Forbes*, introducing herself in one article as a technology investor and businesswoman.
Since his arrest, Lichtenstein has been apologetic and hoped that his skills can be utilized in the fight against cybercrime once he has served his jail term. “This case shows the refreshed commitment of the U.S. government in curbing cryptocurrency- related crimes and recovery of the stolen assets,” said Assistant Attorney General for National Security John C. Demers.
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