Bitfinex Hacker Admits Solo 120k BTC Heist, Disputes Netflix Documentary

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As a seasoned analyst with years of experience dissecting the complexities of cybercrime and its impact on financial markets, I find myself intrigued by the latest developments in the saga of Ilya Lichtenstein and Heather Morgan. The twists and turns in this tale are reminiscent of a thrilling Hollywood script, albeit with real-life consequences for all parties involved.

Ilya Lichtenstein, infamous for the 2016 Bitfinex hack, has once more admitted his wrongdoings. This time, he claims he worked independently, without any assistance from his wife, Heather Morgan. The declaration was made in response to narratives presented in a recent Netflix documentary on the significant crypto theft, aiming to set the record straight.

In a video recorded during his confinement at a U.S. federal penitentiary, Lichtenstein expressed remorse for masterminding one of the most notorious cryptocurrency heists. He admitted to laundering the stolen Bitcoin (BTC) through underground online networks without any help from Morgan.

In various aspects, my wife finds herself unfortunately caught up in the repercussions of my poor choices,” Lichtenstein stated in the recording.

Contradicting Netflix’s “Biggest Heist Ever”

His comments directly contradict the portrayal in Netflix’s documentary “Biggest Heist Ever”, which depicted the couple as the “Bitcoin Bonnie and Clyde” as they were described by the media.

Additionally, the movie implies that either his father could have been part of it or perhaps a foreign intelligence unit like Russia may have been involved in this operation.

In his declaration, Lichtenstein asserted that the story was incorrect, aiming to restore his father’s reputation.

“Let me clarify, my father isn’t a hacker; he doesn’t even understand how to use Instagram. I deeply regret any trouble I may have caused Bitfinex. I knew my actions were wrong, but I did them anyway, not giving it a second thought. Looking back, I can’t help but despise the person I used to be. I despise myself.

In other words, he made it clear that once he’s freed, he intends to employ his abilities in constructive ways, particularly by entering the field of cybersecurity as a career choice.

Heather Morgan Breaks Silence

In a conversation with CoinDesk, Morgan asserted that some aspects of the case, as portrayed in her husband’s recent video, have been distorted. She explained that due to limitations imposed during the legal process, she has been unable to disclose her account of the circumstances.

During the duration of my ongoing criminal case, I was restricted from discussing publicly or sharing my experiences. This also implied I couldn’t publish any writings or unveil fresh artworks or music for the past three years. Now that the case has been resolved, I am excited to be able to freely express myself creatively once more. … I am anxious to disclose the true account of events that took place. This is what Morgan shared.

In an effort to clear her name regarding the incident, Morgan again supported her husband’s statements asserting her non-involvement in the theft. She revealed that her “Razzlekhan” persona was established prior to her encounter with Lichtenstein.

Where is the Stolen Bitcoin Now?

In August 2023, both Lichtenstein and Morgan admitted guilt for money laundering crimes associated with the stolen assets. Lichtenstein ended up serving a five-year prison term, whereas Morgan received an 18-month sentence.

Approximately 120,000 Bitcoin, which Lichtenstein allegedly took from Bitfinex in 2016 by capitalizing on security loopholes, is still not fully traced. Although authorities have seized some of the assets, Lichtenstein claims to be collaborating with them to facilitate the recovery of the stolen bitcoins.

Over the last three years, I’ve been putting in a lot of effort to ensure every single asset, even the smallest fraction, is properly accounted for and returned, as stipulated in my plea deal. I’m committed to keeping this up.

The court has scheduled a restoration hearing for February 2025, during which it will decide if the retrieved Bitcoin should be returned to Bitfinex or given directly to the customers who suffered from the hack.

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2024-12-20 01:03