US prosecutors have asked a federal judge to give the green light to the return of nearly 80% of the 119,754 bitcoins stolen in the 2016 attack on crypto exchange Bitfinex.
In a court filing Tuesday, prosecutors said the 94,643 bitcoins recovered by the government from the original wallet used by the hacker, Ilya Lichtenstein, can be paid to Bitfinex as restitution in kind once the court gives the go-ahead. The Bitcoin Cash, Bitcoin Satoshi Vision, and Bitcoin Gold generated through various forks after the hack will also be sent to Bitfinex.
Last November, Lichtenstein was sentenced to 5 years in prison after pleading guilty to conspiracy to commit money laundering in 2023. His wife, Heather Morgan, better known by her rap nickname Razzlekhan, received an 18-month sentence for helping Lichtenstein to wash part. of the hacking proceeds. Both agreed to forfeit the stolen cryptocurrency as part of their plea deals.
Returning the remaining 25,000 bitcoins will be more complicated.
In their filing, prosecutors said that because Lichtenstein and Morgan attempted to launder those coins through a “variety of complex and technologically sophisticated means, including laundering through extensive stripping chain transactions, virtual currency exchanges that non-compliant, dark web markets and mixers and cups. , as well as being commingled in the business and personal accounts of the defendants” cannot be characterized as the “specific property” lost in the attack and therefore must be returned through an ancillary forfeiture proceeding.
