TechFlow reported on October 16 that according to The Block, US prosecutors recommended that Ilya Lichtenstein be sentenced to five years in prison, followed by three years of supervised release, for money laundering in connection with the 2016 Bitfinex hack.

In a sentencing memorandum filed with the District of Columbia court, the U.S. government recommended a lower-than-standard sentence despite Lichtenstein’s involvement in cybercrime, taking into account his cooperation in the case and his assistance in other investigations. For example, he had accused the operator of the crypto mixer Bitcoin Fog at trial.

Prosecutors noted that Lichtenstein's tough sentence will help break the vicious cycle of young cyber offenders who, due to social isolation, find a sense of belonging online and gradually become involved in crime.

It is reported that in August 2023, Lichtenstein and his co-defendant Morgan pleaded guilty to money laundering charges related to the Bitfinex security breach. When the two were arrested, the U.S. Department of Justice implemented the largest financial seizure operation in history.