Five-Year Prison Sentence for Man who Stole 120,000 Bitcoin from Bitfinex in 2016 (apnews.com) 25
More than 120,000 bitcoin were stolen in a 2016 breach of Bitfinex. Seven years later the perpetrator pleaded guilty.
And Thursday he was sentenced to a five-year prison term, reports the Associated Press: Ilya Lichtenstein masterminded one of the largest-ever thefts from a virtual currency exchange before he and his wife, Heather Rhiannon Morgan, carried out an elaborate scheme to liquidate the stolen funds, according to federal prosecutors... "Over half a decade, the defendant engaged in what IRS agents described as the most complicated money laundering techniques they had seen to date," prosecutors wrote... The couple successfully laundered about 21 percent of the funds stolen from Bitfinex. The laundered money was worth at least $14 million at 2016 prices. Its value would have exceeded $1 billion at the time of their 2022 arrest.
Authorities seized the remaining funds, collectively valued at over $6 billion at current prices... An attorney for Bitfinex said the hack "devastated" its finances and its reputation with its customers, with the stolen funds accounting for approximately 36% of the company's assets at the time of theft. "Bitfinex had to take unprecedented and immediate action to ensure that any losses from the Hack would ultimately be borne by Bitfinex and its shareholders alone, not its customers," the lawyer, Barry Berke, wrote in a letter to the judge.
A prosecutor said Lichtenstein immediately began cooperating with federal authorities after his arrest, helping them with other cybercrime investigations. Over 96% of the stolen funds have been recovered, with help from Lichtenstein, according to defense attorney Samson Enzer. The "vast bulk" of the stolen money was never spent, the lawyer said.
Lichtenstein also "pleaded with the judge to spare his wife from prison, blaming himself for her involvement," according to the article. His wife — a rap artist who records under the name Razzlekhan — will be sentenced Monday, but has pleaded guilty to the same charge, and prosecutors are recommending an 18-month sentence.
And Thursday he was sentenced to a five-year prison term, reports the Associated Press: Ilya Lichtenstein masterminded one of the largest-ever thefts from a virtual currency exchange before he and his wife, Heather Rhiannon Morgan, carried out an elaborate scheme to liquidate the stolen funds, according to federal prosecutors... "Over half a decade, the defendant engaged in what IRS agents described as the most complicated money laundering techniques they had seen to date," prosecutors wrote... The couple successfully laundered about 21 percent of the funds stolen from Bitfinex. The laundered money was worth at least $14 million at 2016 prices. Its value would have exceeded $1 billion at the time of their 2022 arrest.
Authorities seized the remaining funds, collectively valued at over $6 billion at current prices... An attorney for Bitfinex said the hack "devastated" its finances and its reputation with its customers, with the stolen funds accounting for approximately 36% of the company's assets at the time of theft. "Bitfinex had to take unprecedented and immediate action to ensure that any losses from the Hack would ultimately be borne by Bitfinex and its shareholders alone, not its customers," the lawyer, Barry Berke, wrote in a letter to the judge.
A prosecutor said Lichtenstein immediately began cooperating with federal authorities after his arrest, helping them with other cybercrime investigations. Over 96% of the stolen funds have been recovered, with help from Lichtenstein, according to defense attorney Samson Enzer. The "vast bulk" of the stolen money was never spent, the lawyer said.
Lichtenstein also "pleaded with the judge to spare his wife from prison, blaming himself for her involvement," according to the article. His wife — a rap artist who records under the name Razzlekhan — will be sentenced Monday, but has pleaded guilty to the same charge, and prosecutors are recommending an 18-month sentence.
Amazing (Score:3)
Razzlekhan (Score:5, Informative)
The phrase "rap artist" is doing some rather heavy lifting [youtube.com].
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Good one. I came to post one of her absolutely ridiculous videos.
My personal favorite...Versace Beduoin:
https://youtu.be/_DIuPPmY9mw [youtu.be]
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Holy shit, that's so cringey and lame that I almost thought it was some kind of parody....but it's not.
She's so awful that they'll have to invent a new word for whatever that is that she's doing.
or she should just declare (Score:2)
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her presidential candiacy for 2028 - After all cant have a criminal case interfere with an election
No problem, there is only a two month window before the election where the prosecution is prohibited. So don't wait until 2027 to prosecute, prosecute now. Of course, this assumes that prosecution is the goal, not election interference prior to the two month window.
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Of course, this assumes that prosecution is the goal, not election interference prior to the two month window.
When you have judges who are bought and paid for by the defendant, don't expect the prosecution to be able to move forward in a timely manner.
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Of course, this assumes that prosecution is the goal, not election interference prior to the two month window.
When you have judges who are bought and paid for by the defendant, don't expect the prosecution to be able to move forward in a timely manner.
In theory, but again recent events don't match that hypothesis. You'll find the prosecution had waited quite a while and was criticized for doing so. The prosecutor delayed so that an appeal prior to the election would be unlikely. What happened was far more of a failure to expedite a case for no real reason.
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Jack Smith is deliberative in his actions. He doesn't throw shit at the wall and see what sticks. That's why, after that incompetent DEI hired judge who said a special prosecutor is unconstitutional and the bought judges on the Supreme Court who have now given a president, any president, carte blanche to do whatever they want, he was able to change his filings to match the stupidity.
Further, the convicted felon repeatedly went to great lengths delay at every opportunity (as they are entitled to), even gras
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The irony of a Jack Smith supporter complaining about an "incompetent DEI hired judge".
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The irony of a Jack Smith supporter complaining about an "incompetent DEI hired judge".
SInce when is prosecuting criminals like Donald Trump, the equivalent of a football game. Why would you take sides?
And also wouldn't you be angry if the criminal's side got to nominate and pick the referee? Seems like a rigged game to me.
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The irony of a Jack Smith supporter complaining about an "incompetent DEI hired judge".
SInce when is prosecuting criminals like Donald Trump, the equivalent of a football game. Why would you take sides? And also wouldn't you be angry if the criminal's side got to nominate and pick the referee? Seems like a rigged game to me.
One does not take sides. What one does is recognize misconduct even when it is directed as someone a reprehensible as Trump. Jack Smith is just a correct official pursuing his own political agenda. And his record of being reversed on appeal shows this.
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Jack Smith is deliberative in his actions.
Yes, he moved slowly to time things that a trial would be pre-election and an appeal post-election. A deliberate action given his track record of poor legal practices that have lead to *many* losses on appeal.
Supreme Court who have now given a president, any president, carte blanche to do whatever they want
Nope, an ignorant statement on your part. Try reading the Supreme Court ruling itself rather than rely on what Joe/Kamala read off of a teleprompter. The Court actually said that a President has immunity only for acts that are part of his official duty. Which by the way does not prevent Congress from i
Actually its "greater fool theory" (Score:5, Informative)
This aside from the fact that cryptocurrency is the biggest pyramid scheme in history ...
Not so factual there. Pyramid scheme use the deposits of new members to pay the interest/dividends of old members. Crypto does no such thing, no interest, no dividends.
What crypto buyers do is assume they can sell at a higher price to someone else in the future. That's "greater fool theory".
and is total bullshit.
Technically crypto has legitimate uses, it can be (and is) used to transmit money quickly and inexpensively. Person 1 buys crypto in their local currency and immediately transfers it, person 2 immediately sells crypto for their local currency. This is occasionally done for perfectly legal reasons.
That said, crypto is more commonly bought as a high risk high reward highly speculative investment. Which brings us back to the "greater fool theory".
At least the tulips smelled nice and looked pretty.
Very Light Sentence (Score:2)
That sentence is so light for stealing more than most people make in a lifetime, it makes the crime a reasonable bet.
American Greed (Score:2)
Saw this couple on the white collar crime show "American Greed" and she comes across as one of the most annoying douchebags in the world. Constant posing and narcissism and her idea of being wild and daring is to stick her tongue out, bug her eyes out and make hand gestures in every photo. Oh, and she is a "rapper".
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she comes across as one of the most annoying douchebags in the world. Constant posing and narcissism and her idea of being wild and daring is to stick her tongue out, bug her eyes out and make hand gestures in every photo
The world you are looking for is "influencer" and, apparently, many people make their living by being annoying douchebags who constantly pose in strange ways. Many of them make more than those with doctorate degrees.
5 years? (Score:2)
5 years for stealing billions of dollars?
Then money laundering?
Sounds like a slap on the wrist.
If I stole 30k from a Bank I'd get 30 years