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Prosecutors Recommend 5-Year Sentence for Bitfinex Bitcoin Thief

Key Takeaways

  • Prosecutors seek a five-year sentence for Ilya Lichtenstein, who admitted to stealing 120,000 Bitcoin from Bitfinex in 2016;
  • Despite a potential 20-year term, a reduced sentence is recommended due to his cooperation and lack of prior criminal history;
  • Authorities have requested that he return the remaining stolen crypto to Bitfinex, worth more than $6 billion.
Prosecutors Recommend 5-Year Sentence for Bitfinex Bitcoin Thief

US authorities are advocating for a five-year prison term for Ilya "Dutch" Lichtenstein, who confessed to stealing 120,000 Bitcoin BTC $88,306.54 from the Bitfinex $413.32M 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 BCH $424.58 , 117,400 Bitcoin SV BSV $63.22 , and 118,100 Bitcoin Gold BTG $31.49 , 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.

Gode S. , Web3 Market Analyst
Gode is a Web3 Market Analyst who researches the most important industry events and interprets how they affect the wider Web3 space. Her formal education in media culture & digital rhetoric allows her to employ a methodical approach to evaluating critical Web3 news data, including large-scale events and the wider social sentiment within the ecosystem.
Gode is a mutilingual professional, having studied in multiple universities all across Europe. This allows her to have a one-of-a-kind opportunity to analyze Web3 social sentiments spanning different cultures and languages and, in turn, develop a much deeper understanding of how the Web3 space is growing within different communities. With the rest of her team, Gode works to identify crucial crypto news patterns and provide unbiased and data-driven information.
Gode’s passions include working and communicating with people, and when she’s not researching Web3 news, she spends her time traveling and watching true crime documentaries.

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