YEREVAN (CoinChapter.com) — Ilya Lichtenstein, convicted for his role in the 2016 Bitfinex hack, broke his silence on Dec. 19 through a statement on X. After receiving a five-year prison sentence, Lichtenstein admitted to hacking the crypto exchange and laundering large amounts of Bitcoin.
“I planned and executed the Bitfinex heist entirely by myself,”
Lichtenstein stated in a video message. He clarified,
“[My wife] was in no way involved in the hack itself. She didn’t even know about it for years.”
He also admitted,
“I knew what I was doing was wrong and did it anyway because I didn’t care about anyone else except myself.”
Ilya Lichtenstein Prison Statement. Source: X
Lichtenstein, who previously confessed in court to laundering Bitcoin, reiterated his full responsibility for the incident while distancing Heather Morgan, his wife, from any involvement in the hacking.
Heather Morgan’s Sentence and Online Activity Post-Trial
Heather Morgan, also implicated in laundering Bitcoin, was sentenced to 18 months in prison in November. Morgan, who gained notoriety as the rapper “Razzlekhan,” pleaded guilty to conspiracy charges involving money laundering and defrauding the United States.
Despite her sentencing, Morgan has been active on social media. She has shared videos on her YouTube channel about her home arrest and started a Cameo profile, charging $125 for personalized video messages. She refers to herself as “crypto’s favorite felon” and highlights her connection to the high-profile crypto crime.
Morgan is scheduled to report to the Federal Correctional Institution in Danbury, Connecticut, by Jan. 24. The same facility also houses Caroline Ellison, a key figure in the FTX investigation.
Details of the 2016 Bitfinex Hack
The Bitfinex hack in 2016 led to the theft of 119,754 Bitcoin, worth millions then and over $12 billion now. It became one of the largest cryptocurrency breaches in history.
Lichtenstein and Morgan were arrested in 2022 after U.S. authorities traced the laundered funds. While Morgan assisted in laundering the stolen Bitcoin, Lichtenstein admitted to planning and executing the hack alone.
The Department of Justice recovered most of the stolen funds during its investigation. Lichtenstein mentioned in his court testimony that reimbursements to affected users might begin in early 2024. A restitution hearing for both Lichtenstein and Morgan is scheduled for Feb. 21.
Reactions and Netflix Documentary Speculation
The case’s prominence led to a Netflix documentary highlighting Lichtenstein and Morgan’s story. The series speculated about Lichtenstein’s father’s potential involvement, which he strongly denied.
“My dad is no hacker. He doesn’t even know how to use Instagram,”
Lichtenstein said, pushing back against the claims made in the documentary.
Heather Morgan Statement. Source: X
