Illa Lichtenstein, the mastermind behind the largest cryptocurrency heist in history, has been sentenced to 5 years in prison.
In 2016, he stole 119,754 Bit from Bitfinex through 2,000 fraudulent transactions. He then laundered the stolen funds with his wife Heather Morgan.
The Man Who Stole Nearly 120,000 Bit, But Got Caught
The couple pleaded guilty on August 3, 2023 to a money laundering conspiracy. The court is scheduled to sentence Morgan on November 18, while Lichtenstein will be under supervised release for 3 years after his prison term.
The Bitfinex heist was initially valued at $71 million, but became one of the largest cybercrimes due to the surge in Bit value. The IRS-CI, FBI, Homeland Security, and blockchain forensics firm TRM Labs collaborated for 7 years to solve the case.
"He told the jury that he had accessed the Bitfinex system for months, and also hacked accounts on other exchanges like Coinbase and Kraken. Some of the stolen money was used to purchase Non-Fungible Tokens, gold, Walmart gift cards, mushrooms, and LSD," a X user revealed.
Lichtenstein's methods involved using the dark web market, various exchanges, and coin mixers to successfully conceal his tracks for years. In 2022, authorities seized a single wallet containing 94,000 Bit, leading to the discovery of gold coins, physical gold, and US dollars.
Some call him a "genius hacker." In March, a Hollywood film about Lichtenstein and Morgan was announced.
Bloomberg reported that the US government achieved the largest-ever cryptocurrency recovery by seizing Lichtenstein's stolen assets. He received significant leniency for cooperating with authorities and testifying in other cryptocurrency cases, including Bit Fog.
Roman Sterlingov, Provider of Hacking and Money Laundering Tools, Sentenced to 12 Years
Roman Sterlingov, the founder of Bit Fog, a Bit mixer, was sentenced to 12 years for enabling Lichtenstein's Bitfinex heist with the same tools.
Bit Fog, a dark web coin mixer, made it difficult to trace transaction paths by mixing multiple transactions. A prominent example is Tornado Cash.
According to the DOJ press release, Sterlingov helped launder funds for various illegal activities using his tools.
"As proven at trial, Roman Sterlingov created and used online tools to process billions of dollars in illicit transactions, enabling dark web drug dealers and sellers of child sexual abuse material to thrive. Today's sentence sends a clear message: those who assist in online payments for illegal activities will face serious punishment," said U.S. Attorney Graves.
Sterlingov was fined $39.56 million and incarcerated. He also had to forfeit approximately $1.76 million in seized cryptocurrency and cash. Additionally, he lost ownership of his Bit Fog wallet, which held around 1,345 Bit, worth over $13 million.
Bit Fog operated for 10 years, processing around 1.2 million Bit transactions worth approximately $400 million. Most of the funds originated from dark web markets and supported various illegal activities.
In March 2024, after a month-long trial, the jury found Sterlingov guilty of money laundering, conspiracy, and operating an unlicensed money transmitting business.
