U.S. prosecutors are seeking a reduced sentence for the Bitfinex hacker couple: 5 years requested for Lichtenstein and 18 months for Morgan.
In the United States, prosecutors are seeking a reduced sentence for Ilya Lichtenstein, who has admitted responsibility for the theft of 119,754 bitcoins during a hacker attack on the Bitfinex exchange in 2016. The request, filed on October 15, suggests a sentence of five years in prison, compared to the 20 years generally prescribed for the crime of conspiracy to commit money laundering.
Reasons behind the request
The proposed sentence reduction is based on Lichtenstein’s cooperation with authorities and his lack of criminal history. Despite being involved in laundering 25,111 bitcoins and attempting to delete incriminating data, his actions did not hinder the investigation.
The wife’s role
Heather Morgan, Lichtenstein’s wife, is also involved in the request for a reduced sentence. Prosecutors are proposing 18 months of detention, considering her cooperation. While not directly linked to the hacker attack, Morgan played an important role in managing the stolen cryptocurrencies. The couple used methods such as transferring funds through exchanges, purchasing NFTs, gold, and Walmart gift cards to disguise the origin of the stolen money.
Considerations on the severity of the crime
While proposing reduced sentences for both, prosecutors emphasize the complexity of the laundering system orchestrated by Lichtenstein. He was also involved in other frauds, including the theft of $200,000 from another exchange. Prosecutors argue that a more severe sentence would serve as a deterrent for future cyber crimes and reflect the seriousness of the crime committed.
Prosecutors have also asked the court to order the return of the cryptocurrencies seized from Lichtenstein’s wallet to Bitfinex, including approximately 95,000 Bitcoin, 117,400 Bitcoin Cash, 117,400 BSV, and 118,100 Bitcoin Gold, equivalent to over $6 billion.
Lichtenstein’s sentencing is expected on November 14, while Morgan’s is scheduled for the following day.
