U.S. sentences Russian hacker for largest cryptocurrency theft in history

The BBC Russian Service reports.

Lichtenstein pleaded guilty last year to hacking the Bitfinex cryptocurrency exchange in 2016 and stealing nearly 120,000 bitcoins.

At the time, the stolen amount was valued at $71 million, but with bitcoin's dramatic price increase, the value soared to $4.5 billion and is now estimated at over $10 billion based on the current rate.

According to U.S. Deputy Attorney General Lisa Monaco, the assets seized in this case represent the largest confiscation in the history of the U.S. Department of Justice.

“It’s important to make clear that such crimes cannot go unpunished and will have consequences,” said District Judge Colleen Kollar-Kotelly.

Lichtenstein, who has been in custody since his arrest in February 2022, expressed remorse for his actions. He also stated that he hopes to use his skills to combat cybercrime after serving his sentence.

Lichtenstein’s wife, Heather Morgan, was also arrested and pleaded guilty last year to one count of conspiracy to launder money. Her sentencing is scheduled for November 18.

According to court documents, Lichtenstein used advanced hacking tools to breach Bitfinex. Alongside his wife, he employed "a range of sophisticated laundering methods," including using fake identities, converting funds into various cryptocurrencies, and purchasing gold, as stated by the U.S. Department of Justice.

Lichtenstein, who was born in Russia and raised in the U.S., reportedly met with couriers during family trips and transferred laundered money to his homeland, prosecutors claim. Part of the withdrawn funds was spent on various purchases, including a $500 Walmart gift card. Transactions from this card played a significant role in tracing the perpetrators, according to court documents.

The couple lived near Wall Street in Manhattan. Heather Morgan, who collaborated with Forbes and performed rap music, referred to herself as the "Crocodile of Wall Street" in one of her songs. Morgan’s songs and videos went viral on social media after her arrest.

• Bitcoin crossed the $80,000 mark for the first time. This jump, according to analysts, is due to Donald Trump's victory in the U.S. presidential election and the expectation of more favorable regulation of the cryptocurrency market.