Reported by The Block: Prosecutors recommended reducing Lichtenstein’s sentence due to his cooperation in his investigation and other crypto-related probes.
Lichtenstein’s wife and co-conspirator Heather “Razzlekahn” Morgan’s sentencing is scheduled for Nov. 18.
Ilya "Dutch" Lichtenstein has been sentenced to five years in prison for his role in the 2016 hack of crypto exchange Bitfinex and subsequent money laundering, Bloomberg reported on Thursday.
Lichtenstein received the five-year sentence that prosecutors recommended. Lichtenstein had been charged with conspiracy to commit money laundering and conspiracy to defraud the United States, which carry maximum sentence of 20 and five years, respectively. However, prosecutors argued Licthenstein's sentence should be reduced due to his cooperation in not only his investigation but others including his testimony in the Bitcoin BTC -2.09%Fog case, The Block previously reported.
Lichtenstein's wife and co-conspirator Heather Morgan, who goes by the rap alias "Razzlekahn," now awaits sentencing on Nov. 18. She played a smaller role for in the money laundering conspiracy, so prosecutors proposed she get an 18-month sentence.
In 2016, Lichtenstein purportedly hacked into the crypto exchange Bitfinex and stole around 120,000 bitcoin worth $72 million at the time and $10.7 billion today. He and Morgan allegedly laundered the funds using crypto mixers, layered transactions, darknet markets and other tactics, according to the United States Department of Justice. The assets represent the U.S. government's largest seizure to date.
In August 2023, Lichtenstein and Morgan pleaded guilty to money laundering-related charges regarding the Bitfinex's hack.
