Ilya Lichtenstein, who stole 120,000 Bitcoin in a 2016 hack on Bitfinex, is facing a proposed five-year prison sentence, significantly less than the 20 years he could receive for conspiracy to commit money laundering. Prosecutors cite Lichtenstein's lack of prior criminal history and his cooperation in various investigations as reasons for the reduced sentence. His wife, Heather Morgan, is also involved, with prosecutors seeking a similar leniency for her role due to her cooperation. Lichtenstein laundered only about 25,111 Bitcoin, valued at $71 million at the time, but prosecutors argue for a stronger sentence due to the calculated nature of his crimes and the potential impact of normalizing cybercrime. They emphasize that law enforcement, not remorse from the defendants, contributed to recovering some stolen funds. The couple has been ordered to return the seized crypto assets, which are now valued at over $6 billion. Sentencing for Lichtenstein is set for November 14, with Morgan following on November 15.

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