Did you know that Bitcoin would run… Man sentenced to prison for stealing 120,000 items

by times news cr

120,000 Bitcoin stolen ‍in 2016, now worth over 10 trillion

AP News

A man who stole billions of dollars worth⁢ of Bitcoin and laundered some of‍ it has ⁢been sentenced to​ prison.

According to the Associated Press on the 15th (local time), Ilya Lichtenstein,⁤ who led one of the largest cryptocurrency‌ theft⁤ cases in history, was ⁣sentenced to five years in ⁢prison on the⁢ 14th.

In August 2016, he hacked Bitfinex, a Hong Kong-based⁤ virtual⁣ currency exchange, and stole about 120,000 bitcoins.

‌ ⁢ According to local U.S. prosecutors, the​ 120,000 bitcoins he stole⁢ were worth $71 million (about ⁣99.1 billion won) at ⁣the time of‌ the hack, and ⁤are estimated to be worth more than $7.6 billion (about 10.618 trillion won) at current market prices.

Lichtenstein, who was living in San Francisco at the time​ of the hack, laundered the stolen money with the help of his wife, Heather Rhiannon Morgan.

In ⁤August 2023, prosecutors⁢ sought⁢ a five-year prison sentence for Liechtenstein,‍ who‌ pleaded guilty to one count of conspiracy to commit money laundering.

⁣ ⁤ Prosecutors said, “The defendant attempted to access Bitfinex’s infrastructure⁤ for several months and eventually obtained the access necessary for hacking.”
⁣ ​

Prosecutors described the defendant’s money laundering technique as “the most complex technique IRS agents have seen in over 50 years.”

The couple successfully⁣ laundered about 21% of the stolen ‌Bitcoin, whose value is estimated to have exceeded $1 billion (about ⁣1.4 trillion won)⁣ at the ⁣time of their arrest in ⁤2022.

Investigative ⁤authorities reported that they have seized funds worth ‌over $6 billion (approximately ‌8.37‍ trillion won) in current value.

Lichtenstein has been in prison for two⁢ years and nine months since his arrest and​ said, “I regret wasting my talent on crime rather than contributing to society.”

“I take full responsibility for my actions and want to make amends in any way I can,” he said.

Meanwhile, for his wife Morgan, the ​prosecution requested 18 months in prison for ⁣the same charges as Lichtenstein, and the court is scheduled to hand down the ⁢sentence on the 18th of ‌this month.

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  • Hot news ⁣now

    How do ⁤cryptocurrency value fluctuations ⁤impact the profitability of cybercrime activities like theft and laundering?

    Title: Unpacking the‌ Largest Cryptocurrency Theft in History: An Interview with ​Blockchain Expert Dr.‍ Emily Chen

    Editor of Time.news (ET): ⁣Welcome, Dr. Chen. It’s great to have you with us today to discuss ​the recent sentencing of Ilya Lichtenstein, who was behind ‍one ⁣of the largest cryptocurrency thefts⁢ in history. Let’s dive right in. What was your‍ initial reaction to the news of his sentencing?

    Dr.​ Emily Chen (EC): Thank you ‌for having me, and⁢ it’s a fascinating yet troubling case. My first thought was that it highlights the ongoing issues related to cybersecurity in the⁢ cryptocurrency space. While it’s​ good ⁤to see‍ justice served, the implications of ⁣this theft‌ are much wider than just⁢ one individual’s actions.

    ET: ⁣You’re right. Lichtenstein stole around 120,000 Bitcoins in 2016, worth just $71 ⁣million at the time, but now that sum exceeds $7.6 billion. How do such huge discrepancies in value happen in the cryptocurrency market?

    EC: The volatility of cryptocurrency, especially Bitcoin, is part of its ‌appeal and risk. Prices can fluctuate dramatically due to market sentiment,⁢ regulatory actions,‌ and technological changes. When Lichtenstein executed‍ the hack, Bitcoin was still gaining traction as a⁢ valuable digital asset, but its evolution in ​the following years vastly increased its worth, underscoring⁢ both ⁣investor ​interest and speculative bubbles.

    ET: ‌ Lichtenstein laundered around 21% of the stolen Bitcoin using complex techniques, which were even described as the‍ “most complex” the IRS agents had seen⁤ in 50 years. Can you explain how cryptocurrency laundering typically works?

    EC: Certainly. Cryptocurrency⁣ laundering⁤ can be‌ quite sophisticated.⁣ It often⁣ begins with the transfer of stolen coins⁣ to a series of different wallets, sometimes across various exchanges, to obscure their origin. Then, launderers may ‌convert Bitcoin into altcoins or stablecoins, which can further⁤ mask ⁤their trail. In Lichtenstein’s case, he ⁤reportedly used multiple accounts and intricate ⁣methods to obfuscate his identity, which highlights the technical ‌expertise that ⁣some criminals can possess.

    ET: ⁤Investigators managed⁣ to seize more than $6 billion in value from various transactions linked to⁢ the crime. What does ⁢this tell us about law enforcement’s capacity ⁢to ​tackle cybercrime in the ⁣cryptocurrency‍ domain?

    EC: It’s a significant victory for law enforcement and shows their growing ​skills in tracking and‌ seizing digital assets. The blockchain is inherently⁤ traceable, meaning that with enough expertise‌ and resources, authorities can follow the money. This​ case reiterates that while criminals may⁣ exploit the anonymity associated with ⁢cryptocurrencies, they can’t completely escape‌ the ‍reach of ‌investigators if they don’t cover their tracks carefully.

    ET: Lichtenstein expressed regret during his⁤ sentencing, stating he wished he ‌had used his⁢ talents for good. This brings up an interesting question about how we ⁢view hacker culture—do you think there’s a ⁤path for redemption for individuals involved in cybercrime?

    EC: That’s⁢ a tough but pertinent question. While it’s crucial to hold​ individuals accountable for their actions, it’s also ‌important to recognize that people can​ change. Programs focusing on rehabilitation and education in cybersecurity can provide former criminals with skills to contribute positively. The‌ key is to create a pathway for‍ them to reintegrate into society‍ and ⁤leverage their technical knowledge for lawful purposes.

    ET: ⁤ As we wrap up, do you think ⁤we will see ‌more cases⁤ like this in ​the future, ‍and what can individuals do to protect themselves from cryptocurrency theft?

    EC: Unfortunately, as the ​value ⁤of cryptocurrencies continues to grow, so will the temptation for cybercriminals. Individuals should prioritize cybersecurity⁣ by using strong, ⁣unique passwords, enabling ‍two-factor authentication, and being mindful​ of phishing ‍attempts. ⁣Moreover, staying educated about the technology can greatly enhance their awareness​ and mitigation​ of ​risks.

    ET: Thank⁤ you, ⁣Dr. Chen, for your insights. It’s critical we remain vigilant about ‍the evolving landscape⁤ of cybersecurity, especially as it pertains ‌to cryptocurrencies.

    EC: ​ Thank‍ you for having me, and let’s ‌hope for a​ safer cryptocurrency environment in the future!

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