Bitfinex hacker in 120K BTC heist: Feds should get 5 years in prison
In the year US prosecutors are pushing for a man who pleaded guilty to stealing 120,000 bitcoins from crypto exchange Bitfinex in 2016 to serve just five years in prison.
In an Oct. 15 filing, prosecutors told a Washington, D.C., federal court that Ilya Lichtenstein must serve the 20 years he faces after pleading guilty to one count of conspiracy to commit money laundering.
They argued that he should be given a lighter sentence because he had no previous criminal record and provided “useful assistance” to which he had “used several investigations”.
An excerpt from the prosecutor's sentencing memo shows part of the recommendation to reduce Lichtenstein's prison sentence. Source: Pacer
Earlier this month, prosecutors asked the court to reduce the 18-month prison sentence of Heather Morgan, Lichtenstein's associate and wife, for her role in counterfeiting the stolen crypto.
Prosecutors said Lichtenstein should receive a lighter sentence because he only accounted for 25,111 bitcoins (BTC), worth $71 million at the time, and his attempts to destroy incriminating information “did not ultimately hinder the investigation.”
Still, they asked for a longer sentence than Morgan because Lichtenstein spent months planning the scheme and other hacking and money laundering activities, such as stealing $200,000 from another crypto exchange.
Prosecutors said a more realistic punishment is necessary to prevent future crimes and “reflect the seriousness of the crime.”
“After the defendants were arrested, they cooperated with the government to recover the rest of the stolen funds, and law enforcement intervention — no sudden remorse on the part of the defendants — facilitated those recoveries,” he said. .
Lichtenstein's behavior represents a new wave of cybercriminals, and normalizing such online activities could reduce victims' suffering, prosecutors added.
Related: Bitfinex Hacker Heather Morgan Appears at Bitcoin Conference 2024
Prosecutors have asked the court to order both defendants to return government-held crypto assets from Liechtenstein wallets to Bitfinex.
The wallet holds 95,000 Bitcoins, 117,400 Bitcoin Cash (BCH), 117,400 Bitcoin Satoshi Vision (BSV) and 118,100 Bitcoin Gold (BTG), currently worth a total of over $6 billion.
Lichtenstein and Morgan were initially suspected only of faking Hack's earnings, but Lichtenstein later admitted to being the hacker.
Lichtenstein's sentencing is scheduled for November 14, while his wife will be sentenced on November 15.
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