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

Bitcoin Nears $100,000 as Shanghai Court Recognizes Crypto Ownership

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.

“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.

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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.

William Ross
About William Ross 310 Articles
I am a cryptocurrency enthusiast and writer with over five years of experience in the industry. I have been following the development and innovation of Bitcoin and Ethereum since their inception, and I enjoy sharing my insights and analysis with readers. I have written for various reputable platforms, such as CoinDesk, Cointelegraph, and Decrypt, covering topics such as market trends, regulation, security, and adoption. I believe that cryptocurrency is the future of finance and technology, and I am passionate about educating and informing people about its benefits and challenges.

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