Rs 87,000 Crores Worth of Bitcoins Stolen by Crypto Hackers, Jailed for 5 Years

Two crypto hackers were sentenced to five years in prison for orchestrating one of the largest cryptocurrency heists in history. Ilya Lichtenstein and his wife, Heather Rhiannon Morgan, were found guilty of stealing Rs 87,000 crores worth of Bitcoins from the Bitfinex cryptocurrency exchange in 2016.

The Heist and Its Aftermath

The breach resulted in the theft of nearly 120,000 Bitcoins, now valued at over $10.5 billion. Lichtenstein, 35, infiltrated Bitfinex’s network using sophisticated hacking tools and techniques. Once inside, he authorized over 2,000 unauthorized transactions, transferring approximately 119,754 Bitcoins into his personal cryptocurrency wallet.

Covering Their Tracks

To cover their tracks, Lichtenstein and Morgan employed a web of tactics, including creating fake identities to open online banking accounts, transferring funds to darknet markets and cryptocurrency exchanges, and using mixing services such as Bitcoin Fog, reported 420.in.

Breaking: ‼️ #Bitfinex hacker sentenced to 5 years in prison for extracting nearly 120k $BTC in 2016#CryptoNews #Bitcoin pic.twitter.com/7MZtZuZJ1m

— Coinpedia Markets (@MarketCoinpedia) November 15, 2024

“The couple’s downfall was attributed to blockchain analytics conducted by Chainalysis, which tracked their purchase of Walmart gift cards with the stolen funds,” stated a spokesperson from the U.S. Department of Justice.

Legal Proceedings and Sentencing

The couple was arrested in February 2022, and both pleaded guilty to related charges. Lichtenstein was sentenced to five years in prison, while Morgan’s sentencing is scheduled for November 18. “This case highlights the importance of robust cybersecurity measures and the relentless pursuit of justice for those who engage in financial crimes,” said U.S. Attorney Martin Estrada.

Impact on the Cryptocurrency Community

The sentencing of Lichtenstein and Morgan has sent shockwaves through the cryptocurrency community. “This is so massive, it is not comparable to other crypto crimes based on its scale and complexity,” remarked U.S. District Judge Colleen Kollar-Kotelly. The case underscores the need for heightened vigilance and security within the cryptocurrency industry.

Related Stories:

Karnataka Bitcoin Scandal; SIT Accuses Crypto Exchange Founder of Bribing Police to Recover 60.6 Stolen Bitcoins FTX Crypto Scandal: Caroline Ellison Jailed for 2 Years and $11 Billion Fine US Government to Cash Out 41,000 Bitcoins Worth Over $2 Billion from Silk Road Hacker WazirX Crypto Exchange Hit Massive Hack: $230 Million Stolen Mrs World 2022: Sargam Koushal brings back title to India after 21 years NASA’s Cosmic Marvel: Hubble’s Capture of Virgo Galaxy Cluster, 52 million Light-Years Away How to Ensure You Have Access to Sufficient Liquidity When Trading Crypto CFDs SE7EN And Lee Da Hae Announce Marriage After 8 Years Of Dating