United

Bitcoin

One of the two individuals responsible for laundering stolen Bitcoin connected to the 2016 hack of crypto exchange Bitfinex has been sentenced to 18 months in prison.
Washington, DC, District Court Judge Colleen Kollar-Kotelly sentenced Heather Morgan — also known by her rapper alter ego “Razzlekhan” — to 18 months in prison in a Nov. 18 hearing. Morgan pleaded guilty to conspiracy to commit money laundering and defraud the United States in August 2023.
Morgan and her husband, Ilya Lichtenstein, admitted to laundering millions of dollars worth of Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) stolen from Bitfinex before their 2022 arrests. US authorities initially suspected the couple had only been responsible for laundering the stolen funds, but Lichtenstein later admitted in court to hacking the exchange.<iframe width="100%" height="315" src="https://www.youtube.com/embed/710kWBFxrCU" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
Judge Kollar-Kotelly <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitfinex-hack-money-laundering-ilya-lichtenstein-sentenced" rel="null" target="null" text="null" title="https://cointelegraph.com/news/bitfinex-hack-money-laundering-ilya-lichtenstein-sentenced">sentenced Lichtenstein to five years</a> in prison on Nov. 14 — far less than the 20 years allowed by sentencing guidelines. Prosecutors cited the hacker’s “substantial assistance” in other investigations and the fact he had no prior criminal history.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitfinex-2016-bitcoin-hack-restitution-us-government" rel="null" target="null" text="null" title="null">Only Bitfinex may get restitution in 2016 hack, per government filing</a>
In 2016, Lichtenstein stole 119,754 BTC from Bitfinex. The funds were worth millions at the time of the hack but were valued at roughly $10.8 billion at the time of publication. At the time, the Bitcoin represented the largest seizure by the US Department of Justice.
<h2 id="different-approach-to-crypto-related-crimes">Different approach to crypto-related crimes?</h2>
Though Lichtenstein was indicted in Washington, DC, many of the most high-profile crimes tied to crypto firms take place under the jurisdiction of the US District Court for the Southern District of New York. Authorities there tried five executives responsible for the collapse of the cryptocurrency exchange FTX, and a trial is scheduled for former Celsius CEO Alex Mashinsky in January.
On Nov. 15, a prosecutor with the district’s Securities and Commodities Fraud Task Force <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/new-york-prosecutor-scale-back-crypto-cases" rel="nofollow noopener" target="_blank" text="null" title="https://cointelegraph.com/news/new-york-prosecutor-scale-back-crypto-cases">suggested that authorities</a> would scale back investigations and enforcement involving crypto-related crimes in the future. Former Securities and Exchange Commission Chair Jay Clayton could also serve as US attorney for the district starting in 2025 <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/trumps-former-sec-chair-us-attorney-southern-district-new-york" rel="nofollow noopener" target="_blank" text="null" title="https://cointelegraph.com/news/trumps-former-sec-chair-us-attorney-southern-district-new-york">following an announcement</a> by President-elect Donald Trump.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/hackers-crypto-wallets-recover-savings/" rel="null" target="null" text="null" title="null">Meet the hackers who can help get your crypto life savings back</a>

Bitfinex money launderer ‘Razzlekhan’ sentenced to 18 months in prison

Table of Contents

Cointelegraph

Other articles published on Nov 18, 2024

Dell Stock Climbs Amidst AI Innovations and Market Optimism

Top 7 Layer 2 Coins and Tokens to Keep an Eye on In 2024

Various Bullish Metrics Align for Litecoin (LTC) Price Pump: Only One Resistance Remains

Turn $250 Into $1 Million: These 5 Cryptos Are Leading the Bull Market!

Top Crypto Presale to Buy Today: November’s Best Coins for Big Returns

EU Stablecoin Regulation: Quantoz to Launch MiCA-Approved EURQ, USDQ!

Join our free newsletter for daily crypto updates!