New York Man Reveals $4.5 Billion Bitcoin Hack Confession On Bitfinex

Key Points:

• New York resident Ilya Lichtenstein confesses to $4.5 billion Bitcoin hack.
• Lichtenstein admits guilt in money laundering conspiracy.
• It was disclosed that Lichtenstein had converted some of the stolen assets into gold coins.

According to CNBC, Ilya “Dutch” Lichtenstein, a New York resident, has confessed to being the original hacker behind the infamous 2016 cyberattack on Bitfinex, which resulted in the theft of $4.5 billion worth of Bitcoin.

Lichtenstein made this admission while pleading guilty to money laundering conspiracy charges in a Washington, D.C. federal court. The hacker’s identity had remained a mystery until this point, making the revelation a major breakthrough in the investigation.

During the plea hearing, it was revealed that Lichtenstein executed a multi-million-dollar exploit on the crypto exchange Bitfinex in 2016. He used a sophisticated money laundering process to move about 25,000 of the stolen bitcoin, eventually depositing the illicit funds into accounts controlled by him and his wife, Heather Rhiannon Morgan.

The couple had not been directly charged in the hack itself, but their arrest in February 2022 led to the seizure of over 94,000 bitcoin by the Department of Justice, valued at around $3.6 billion. This seizure marked the largest in DOJ history.

Lichtenstein, who had been held without bond due to being considered a flight risk, will remain in jail until his sentencing on a count of conspiracy to commit money laundering. He has, however, agreed to cooperate with federal investigators.

Meanwhile, Morgan, known by her stage names “Razzlekahn” and “The Crocodile of Wall Street,” also entered her guilty plea in the same case but has been free on $3 million bond since her arrest.

The stolen bitcoin, which was worth only $70 million when initially taken, significantly appreciated in value over the years, reaching an astonishing $4.5 billion. Lichtenstein’s elaborate money laundering scheme involved converting some of the assets into gold coins and hiding them at undisclosed locations.

With the unexpected twist of former President Donald Trump’s arraignment in the same courthouse, the case has drawn significant attention and intrigue, attracting plans for a Netflix series about the infamous Crypto Couple.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.