Ilya Lichtenstein was sentenced to five years in prison for his involvement in the 2016 theft of approximately 120,000 bitcoin from crypto exchange Bitfinex. Using advanced hacking techniques, Lichtenstein authorized over 2,000 transactions, transferring nearly 120,000 bitcoin to his own wallet, and subsequently attempted to cover his tracks by deleting evidence from the network. Lichtenstein and his wife, Heather Morgan, also known as rapper Razzlekhan, laundered a portion of the stolen funds, specifically 25,111 bitcoin, utilizing complex money laundering methods through various Eastern European bank accounts and bitcoin mixing services. Both Lichtenstein and Morgan pleaded guilty to conspiracy to commit money laundering, a charge that could have led to a 20-year sentence. While Lichtenstein received five years along with three years of supervised release, Morgan's sentencing is set for November 18, where prosecutors are recommending 18 months. This case highlights the sophistication and difficulties in tracking and prosecuting cryptocurrency-related crimes.

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