Ilya Lichtenstein, who stole 120,000 bitcoins during the 2016 Bitfinex hack, could face a reduced sentence of five years in prison, according to prosecutors.

Request for a Reduced Sentence

U.S. prosecutors are pushing for Lichtenstein, who admitted to stealing the bitcoins, to receive 5 years in prison instead of the originally proposed 20 years. In a filing dated October 15, prosecutors told the Washington D.C. federal court that Lichtenstein should receive a lighter sentence due to having no prior criminal record and for providing substantial assistance in various investigations.

An excerpt from the prosecutor’s sentencing memorandum shows part of the reasoning behind the recommendation for a reduced prison sentence for Lichtenstein. Source: Pacer

Assistance with Investigations

Prosecutors emphasized that Lichtenstein cooperated with authorities and helped in recovering the stolen funds. Despite laundering only 25,111 bitcoins out of the 120,000, his attempts to cover his tracks did not impede the investigation.

Sentence for Wife Heather Morgan

Earlier this month, prosecutors also requested a lighter sentence for Lichtenstein’s wife, Heather Morgan, who played a role in laundering the stolen cryptocurrency. They proposed a sentence of 18 months in prison for her, citing her cooperation with the authorities.

Need for a Higher Sentence

Despite Lichtenstein’s cooperation, prosecutors are seeking a higher sentence for him than for Morgan. They argue that Lichtenstein spent months planning the hack and was involved in other financial schemes, such as stealing $200,000 from another cryptocurrency exchange. A harsher sentence, they believe, is necessary to deter future crimes.

Return of Cryptocurrency and Impact on Victims

Prosecutors are also asking the court to order the return of the seized cryptocurrency found in Lichtenstein’s wallet. The assets include approximately 95,000 bitcoins, 117,400 bitcoin Cash, 117,400 bitcoin Satoshi Vision (BSV), and 118,100 bitcoin Gold, with a current value of over $6 billion.

Lichtenstein was originally suspected only of laundering the proceeds of the hack, but he later confessed to being the hacker himself.

Sentencing

Lichtenstein’s sentencing is scheduled for November 14, while his wife, Heather Morgan, will be sentenced the following day on November 15.

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