Ilya Lichtenstein, who pleaded guilty to hacking crypto exchange Bitfinex in 2016, has been sentenced to prison five years.
Lichtenstein was charged with engaging in money laundering and the theft of nearly 120,000 bitcoins (worth over $10.5 billion at current prices). Heather Rhiannon Morgan, his wife, has also been charged with the same crimes. Both were arrested in February 2022.
“ Lichtenstein, 35, hacked into Bitfinex’s network in 2016, using advanced hacking tools and techniques ,” the U.S. Department of Justice said . “ Once on the network, Lichtenstein authorized more than 2,000 transactions transferring 119,754 bitcoins from Bitfinex to a wallet of his own .”
See also: USA: Sanctions on crypto exchange services Cryptex and PM2BTC for money laundering
then attempted to cover his tracks by deleting access credentials and other logs from the Bitfinex network. According to the Department, the two perpetrators used virtual identities to create online bank accounts to launder the illicit proceeds.
They converted crypto into other cryptocurrencies, depositing a portion of the illicit assets into mixing services like Bitcoin Fog. They converted it into fiat currency and then transferred it to a US bank account.
The development comes days after Roman Sterlingov, the 36-year-old founder of Bitcoin Fog, was sentenced to 12 years and six months in prison for facilitating money laundering activities between 2011 and 2021.
According to the Associated Press, Morgan is a business owner and author. The couple was living in San Francisco at the time of the attack.
See also: US: Money laundering charges against Russians
“Lichtenstein created and orchestrated the hack without telling Morgan,” prosecutors said. “He also solicited the defendant’s help without explaining exactly what she was doing. The defendant was certainly a willing participant and bears full responsibility for her actions, but she was a lower-level participant.”
Money laundering
Preventing this malicious activity requires a multi-layered approach. First, it is important to have a stable and effective legal framework to address the issue. This includes establishing laws and regulations that prohibit money laundering and provide for severe penalties for violators
Additionally, banks and other financial institutions must have control and monitoring systems in place to identify and report suspicious transactions. This may include training staff and implementing technologies that can help detect suspicious activity.
See also: Idaho man sentenced to 10 years in prison for hacking
International cooperation is also crucial to preventing money laundering. Countries must work together to share information and enforce their laws internationally. International organizations can also play an important role in promoting best practices and providing technical assistance.
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Finally, public information and awareness is another important factor. Citizens need to be aware of techniques and their impact on society, so that they can recognize and report any suspicious behavior.
Source: thehackernews.com
