US calls for five years for mastermind of $6 billion crypto heist – BNN Bloomberg

(Bloomberg) — The mastermind behind one of the largest cryptocurrency heists in history should serve five years in prison for a money laundering conspiracy linked to the $6 billion hack of the Bitfinex exchange, U.S. prosecutors told a judge.

Ilya Lichtenstein, who pleaded guilty last year, should spend more time behind bars than his rapper wife and co-conspirator Heather Morgan, the government said in a court filing Tuesday. Last week, prosecutors said Morgan, who called himself the “Crocodile of Wall Street,” should serve 18 months in prison.

Prosecutors said Lichtenstein fits the profile of young cybercriminals, whose online activities have been “normalized in a way that downplays the impact on victims.”

“Strong punishment in this case will help break this cycle,” government lawyers told a federal judge in Washington.

Lichtenstein was primarily responsible for the Bitfinex hack and later laundered the proceeds with the help of his wife, who goes by the nickname Razzlekhan in her rap videos, the government said. She admitted to helping her husband hide the stolen crypto even after finding out he was behind the hack in 2020.

But prosecutors did not seek the maximum sentence for Liechtenstein, citing his cooperation in other criminal cases. Earlier this year, he testified on behalf of the government in a money laundering case involving a mixing service called Bitcoin Fog.

Lichtenstein and Morgan used sophisticated money laundering techniques to cover their tracks, including depositing and withdrawing funds on crypto exchanges and darknet markets, the government said. The couple used the proceeds to buy non-fungible tokens, gold and Walmart gift cards, prosecutors said.

They are scheduled to be sentenced in November.

The case is USA v. Lichtenstein, 23-cr-00239, US District Court, District of Columbia (Washington).

–With assistance from Robert Burnson.

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