The Real Story Behind the 120,000 Bitcoin Hack
Ilya Lichtenstein, the Bitfinex hacker and mastermind behind the theft of 120,000 Bitcoins in 2016, has made his first public statement since his arrest in 2022. In a recent video by X, he admitted to being a hacker and denied that his father or any spy agency was involved.
He stated that he has worked hard to return the stolen Bitcoins and will continue to do so. Lichtenstein also expressed regret for his actions and those involving his wife, Heather Morgan, who pleaded guilty to money laundering and conspiracy charges. Morgan was sentenced to 18 months in prison. Lichtenstein plans to work in cybersecurity after he is released from prison. According to his lawyers, most of the stolen Bitcoins have been recovered.
Lichtenstein denies father’s involvement
In a five-minute video posted on
“My dad is not a hacker, he doesn’t even know how to use Instagram,” Lichtenstein said. He was sentenced to five years in prison for conspiracy to launder money, including the time he was detained after his arrest while the case was ongoing. To-do.
Sincere apology to Bitfinex
Lichenstein also expressed his sincere apology to Bitfinex “for all the stress he put on them,” he said in the video, which was recorded during a remote visit with his wife from prison. Lichtenstein admitted in the video that he knew his actions were wrong but did them anyway, expressing remorse and self-hatred. He also provided an update on the return of stolen funds to Bitfinex.
Lichtenstein said he has worked over the past three years to return all stolen assets as part of his plea agreement and will continue to do so. A compensation hearing is scheduled for February to decide whether the recovered funds belong to Bitfinex or its affected customers.
Heather Morgan, also known as “Razzlekhan,” the wife of the Bitfinex hacker, also pleaded guilty. Charges include conspiracy to launder money and conspiracy to defraud the United States. Prosecutors said Morgan learned years later that Bitfinex had been hacked and Lichtenstein asked her to help launder the bitcoins.
Lichtenstein said in the video that his wife, Heather Morgan, was also a victim of his bad decisions. Last month, Morgan was sentenced to 18 months in prison for his supporting role in Lichtenstein’s crimes. Morgan, best known for her goofy rap videos, recently started selling custom videos for $125 each on Cameo, a non-pornographic version of Onlyfans. Her sentence could begin as early as next month.
Many myths yet to be debunked?
A Netflix documentary about the case said much of the stolen money remains unaccounted for. However, Lichtenstein disagreed, saying all funds had been accounted for.
“It’s great to begin clarifying the public record about our case,” Morgan noted of the video her husband posted. “You might think this would happen after we file the sentencing memorandum, but that’s not the case. There are so many rumors out there and I look forward to debunking them when we tell the true story.”
Lichtenstein revealed that after serving his sentence, he plans to pursue a career fighting cybercrime. He previously expressed remorse for “wasting his talents on crime rather than making a positive contribution to society.” He said he hopes to use his professional knowledge to fight cybercrime after he is released from prison.
It’s worth noting that the Bitcoins stolen in the 2016 hack were worth $70 million at the time and are worth about $12 billion today. The Netflix documentary left viewers with the impression that a large portion of the stolen funds remained unaccounted for, but Lichtenstein’s lawyers said that was not the case.
Lichtenstein’s lawyer, Samson Enzer, confirmed that with Lichtenstein’s assistance, nearly all of the assets stolen in the 2016 Bitfinex hack have been recovered. Approximately 114,601 Bitcoins (96% of the total stolen) and 29 other valuable assets were recovered.
