Ilya Lichtenstein’s Statement Post-Sentencing
Ilya Lichtenstein, who was sentenced to five years in prison for hacking and laundering Bitcoin from Bitfinex in 2016, has spoken about his role in the infamous crime. In a Dec. 19 X post, he took full responsibility for the heist, aiming to clear his wife Heather Morgan of involvement in the hack itself.
“I planned and executed the Bitfinex heist entirely by myself”, Lichtenstein said in a video message from prison. “My wife was in no way involved in the hack itself. She didn’t even know about it for years”.
Morgan, also known by her rap alias “Razzlekhan,” was sentenced to 18 months in prison for conspiracy to launder money from the stolen funds.
The Impact of the 2016 Bitfinex Hack
The hack of Bitfinex back in 2016 was one of those milestone events in the crypto space that saw 119,754 BTC stolen. Though it was worth millions of dollars at the time of the theft, the worth today is over $12 billion.
Lichtenstein had pled guilty in court to single-handedly hacking the exchange and laundering the stolen Bitcoin. In a broad-reaching investigation, both he and Morgan were arrested in 2022.
A Netflix documentary on the case theorized that Lichtenstein’s father was involved. However, Lichtenstein vehemently denied these claims, saying, “My dad is no hacker. He doesn’t even know how to use Instagram”.
Heather Morgan: Rebranding or Remorse?
Since her sentencing, Morgan has resumed a public presence on social media. She started a Cameo channel on Dec. 13, offering personalized videos for $125, where she described herself as “crypto’s favorite felon” and the wife of a “notorious hacker”.
Morgan, who pleaded guilty to conspiracy charges, is scheduled to begin serving her sentence on Jan. 24 at the Federal Correctional Institution in Danbury, Connecticut.
Restitution for Bitfinex Users
U.S. authorities have recovered much of the stolen money, and plans for restitution to the affected Bitfinex users are in the works. Lichtenstein said that the reimbursement could start as early as Q1 2024.
A hearing on the restitution plan is set for Feb. 21.
