The US Department of Justice (DOJ) is reaching out to individuals affected by the 2016 Bitfinex hack, despite not formally recognizing them as “victims” under the Crime Victims’ Rights Act (CVRA). The department is preparing for the sentencing of those involved in the case and is seeking statements from anyone potentially harmed by the defendant’s actions.
The hack, which occurred in 2016, involved Ilya Lichtenstein stealing approximately 120,000 Bitcoin from Bitfinex, valued at $72 million at the time. With the increase in Bitcoin’s value, the stolen amount is now worth around $9.2 billion. Lichtenstein and his wife, Heather Morgan, used various methods to launder the funds, including multiple transaction layers, crypto mixers, non-compliant exchanges, and darknet markets.
Prosecutors have recommended an 18-month prison sentence for Morgan for money laundering and a five-year sentence for Lichtenstein. Morgan is hoping for a sentence of time served to avoid further imprisonment. Lichtenstein’s sentencing is scheduled for Nov. 14, followed by Morgan’s the next day.
The DOJ has identified Bitfinex as the only party eligible for restitution in this case and is unaware of any other individuals who meet the CVRA’s definition of a victim. Despite this, the department is proceeding with the initiative to collect statements from those impacted by the hack, including Bitfinex account holders.
If you believe you have been affected by the Bitfinex hack, you can submit your statement to the DOJ through their website. Your input could provide valuable information relevant to the upcoming sentencing of those involved in the case. Stay tuned for updates on the sentencing of Lichtenstein and Morgan as the DOJ continues its investigation into the Bitfinex hack.
