U.S. prosecutors urge to reduce the five-year prison sentence for the 2016 Bitfinex hacker

According to ChainCatcher, The Block reported that U.S. prosecutors recommended a five-year prison sentence for Ilya Lichtenstein, followed by three years of supervised release, for his involvement in money laundering activities related to the 2016 Bitfinex hack.

In a sentencing memorandum submitted to the District of Columbia court, despite Lichtenstein's past involvement in cybercrime, the U.S. government still recommended a sentence below the standard range, considering his cooperation in the case and assistance in other investigations. For example, he had accused the operator of the crypto mixer Bitcoin Fog during the court proceedings.

Prosecutors noted that a harsh sentence for Lichtenstein would help break the vicious cycle of young cybercriminals who find a sense of belonging in the online world due to social isolation and gradually become involved in crime.

It is reported that in August 2023, Lichtenstein and his co-defendant Morgan pleaded guilty to money laundering charges related to the Bitfinex security breach, and when they were arrested, the U.S. Department of Justice conducted the largest financial seizure operation in history.