The post Bitfinex Hack Mastermind Ilya Lichtenstein: Sentencing Looms for $6B Crypto Theft! appeared first on Coinpedia Fintech News

The mastermind of the hack will be facing sentencing who was convicted for hacking the platform in 2016.

American authorities want a five-year prison term for Ilya Lichtenstein, the main organizer of the crypto exchange Bitfinex hack in 2016, during which $6 billion worth of digital currency was stolen. 

Lichtenstein, who copped a plea deal last year, and his wife, Heather Morgan, also an aspiring rapper, known by her stage name Razzlekhan, facilitated the laundering of the stolen crypto. 

While Morgan is given a warrant of an 18- month imprisonment the prosecutors claim that because Lichtenstein planned the whole process he deserves to be punished severely.

The 2016 Bitfinex Hack

The hack of Bitfinex was one of the biggest thefts in the era of cryptocurrencies in which 119,754 bitcoins were stolen. What Lichtenstein did was take advantage of computer-related criminal activities to siphon the funds, with which Morgan helped him in the money laundering process. 

The couple employed different tactics including service blending and darknet markets to obscure assets retrieved through oppression by buying things like non-fungible tokens, gold, and Walmart blessing cards.

Money Laundering and Cooperation With the Authorities

While the prosecutors did not ask for the maximum penalty for Lichtenstein, they did recognize his assistance in other criminal proceedings, for example, when he testified against the organizers of the Bitcoin Fog mix service. 

Even with his help, the US authorities are demanding a long-term stay for the young man, to make the punishment correspond to the scale of the crime, and, most importantly, to set an example for other potential hackers. Morgan is also to be sentenced in November alongside Lichtenstein.

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The Impact of the Hack

Allegations of improper handling of the situation in connection with the Bitfinex hack affected the cryptocurrency market reactions, the trust in the existing platforms decreased and most people demanded better security protocols in the exchanges. 

Local attorneys underlined that beginners like Lichtenstein do not view the grandiosity of such attacks and that’s why more severe legal sanctions are necessary to stop the circles of crypto-crimes.