US man who laundered bitcoin stolen from Hong Kong-based Bitfinex gets 5-year sentence

A computer expert who stole bitcoin worth billions of dollars at current prices – and then spent years laundering some of the hacked cryptocurrency with help from his wife – was sentenced on Thursday to five years in prison.

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Ilya Lichtenstein masterminded one of the largest-ever thefts from a virtual currency exchange before he and his wife, Heather Rhiannon Morgan, carried out an elaborate scheme to liquidate the stolen funds, according to federal prosecutors.

US District Judge Colleen Kollar-Kotelly told Lichtenstein that his theft was “meticulously planned” and not an impulsive act.

“It’s important to send a message that you can’t commit these crimes with impunity, that there are consequences to them,” she said.

Ilya Lichtenstein and Heather Morgan. File photo: Instagram @unrealdutch
Ilya Lichtenstein and Heather Morgan. File photo: Instagram @unrealdutch

Lichtenstein, who gets credit for the two years and nine months that he has spent in jail since his February 2022 arrest, expressed remorse for “wasting my talents on crime instead of a positive contribution to society.” He said he hopes that he can apply his expertise to fight cybercrime when he gets out of prison.

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