In a notable development, the U.S. government has proposed prison sentences for Ilya Lichtenstein and his wife, Heather Morgan, in connection with the infamous Bitfinex hack of 2016.
This security breach, which resulted in a staggering loss of $6 billion, continues to be a hot topic in the crypto world. In a recent court filing, prosecutors are seeking a five-year sentence for Lichtenstein while recommending 18 months for Morgan, who has playfully referred to herself as the “Crocodile of Wall Street.”
The couple pleaded guilty to money laundering the 120,000 Bitcoin stolen during the hack, and they were arrested in 2022, leading to the recovery of 95,000 of the stolen coins and an additional $475 million. Lichtenstein’s cooperation with authorities has resulted in a potential reduction of his sentence.
Since the 2016 incident, Bitfinex has faced various security challenges. In January 2024, the exchange’s CTO, Paolo Ardoino, reported successfully thwarting an attempted attack involving a massive $15 billion XRP transfer. However, in May, Bitfinex experienced another significant data breach, exposing sensitive information of over 40,000 customers.
Despite these setbacks, the exchange has managed to maintain its standing in the crypto community, buoyed by the recovery of funds from the earlier hack and the overall resilience of the market, despite the turmoil caused by such incidents.
