The couple charged with laundering $4.5 billion in cryptocurrency and conspiracy to defraud the United States through a 2016 hack of crypto exchange Bitfinex have reached a plea deal, according to court documents Friday morning.
As part of the plea deal, the couple has agreed to forfeit proceeds from the almost 120,000 Bitcoin they stand accused of laundering. Ilya Lichtenstein and his wife Heather Morgan, both of whom were arrested early last year, are set to appear before a judge on August 3rd, and could face up to 20 years in prison.
U.S. prosecutors said that the culprits employed “numerous sophisticated laundering techniques,” allegedly using false identities, automating transactions, and then depositing the funds on a variety of exchanges and darknet markets–a process known as “layering.”
DOJ Seizes $3.6 Billion in Bitcoin From 2016 Bitfinex Hack, Arrests Couple
The Justice Department today announced that two individuals have been arrested on charges of conspiracy to launder cryptocurrency stolen during the 2016 Bitfinex hack. So far, law enforcement has seized over $3.6 billion worth of Bitcoin linked to the hack, according to the DOJ. “Today’s arrests, and the department’s largest financial seizure ever, show that cryptocurrency is not a safe haven for criminals,” said Deputy Attorney General Lisa O. Monaco. “In a futile effort to maintain digital an...
Upon arrest in February 2022, the Department of Justice (DOJ) seized $3.6 billion, considered the department's “largest financial seizure ever,” said Deputy Attorney General Lisa O. Monaco. But many questions about how the hack and subsequent seizure of funds happened were left unanswered.
According to court documents, both parties allegedly conspired to launder 119,754 Bitcoins, all stolen from the Bitfinex platform when it was hacked in 2016. Recently, the company recovered a small amount of the Bitcoin Cash that was stolen in the notorious hack.
