Ilya Lichtenstein, who orchestrated the 2016 theft of over 119,000 Bitcoin from crypto exchange Bitfinex, has been sentenced to 60 months in prison for money laundering, the U.S. Department of Justice said Wednesday. 

The ruling marks a significant conclusion to one of the largest cyber thefts in history, resulting in the recovery of approximately $10 billion in stolen assets, 

The sentencing follows a seven-year investigation involving multiple U.S. agencies, including the IRS-Criminal Investigations unit, the Federal Bureau of Investigation, and Homeland Security Investigations, alongside blockchain forensics firm TRM Labs. 

Lichtenstein’s actions, in collaboration with his wife, Heather "Razzlekhan" Morgan, involved laundering roughly 120,000 Bitcoin, valued at about $4.5 billion at the time of recovery. Morgan is scheduled for sentencing on Nov. 18.

After pleading guilty to money laundering charges in August 2023, Lichtenstein then admitted to exploiting a vulnerability in Bitfinex’s security infrastructure in 2016 to siphon Bitcoin valued then at around $71 million. 

According to DOJ statements, Lichtenstein used sophisticated hacking techniques to breach Bitfinex’s security, granting himself unauthorized access to its network. He initiated over 2,000 transactions to transfer 119,754 Bitcoin into a personal wallet.

Lichtenstein then moved the funds through thousands of complex transactions across darknet markets and exchanges, leveraging privacy tools like coin mixers and privacy-focused cryptocurrencies to cover his tracks.

Despite efforts to obscure the trail, blockchain intelligence tools enabled authorities to trace the assets and execute one of the largest crypto seizures in U.S. history. 

Law enforcement recovered approximately 94,000 BTC from a single wallet in 2022, now valued at billions, marking a critical milestone in the investigation. 

Subsequent searches revealed additional assets, including physical gold, digital coins, and U.S. dollars.

"This case showcases how far cryptocurrency investigations have come, particularly as blockchain technology becomes more integral to financial crime enforcement," TRM Labs said Thursday. "As crypto crime continues to evolve, so too must the tools and techniques used by law enforcement—and cases like Bitfinex highlight the need for ongoing advancements in crypto tracking."