In a significant update to the infamous 2016 Bitfinex hack, Ilya Lichtenstein has made his first public statement since his arrest in 2022. Lichtenstein, who has pleaded guilty and is currently serving a five-year prison sentence, openly admitted to being the hacker behind the massive cryptocurrency theft. In a recent video shared on the platform X, he emphasized that he acted alone and dismissed any involvement of his father or any spy agency in the hacking incident.
Efforts to Return Stolen Bitcoin
Lichtenstein has expressed his commitment to rectifying his past actions by working diligently to return the stolen Bitcoin. He acknowledged the gravity of his decisions and expressed deep regret for both his actions and the subsequent involvement of his wife, Heather Morgan. Morgan, who faced charges of money laundering and conspiracy, received an 18-month prison sentence. Lichtenstein’s legal team has confirmed that a significant portion of the stolen Bitcoin has already been recovered.
Refuting Speculations and Apologizing to Bitfinex
In his five-minute video, Lichtenstein addressed various speculations, particularly those presented in a Netflix documentary that suggested possible involvement of his father or external agencies. He categorically denied these claims, humorously noting, “My dad is no hacker, he doesn’t even know how to use Instagram.” Moreover, Lichtenstein offered sincere apologies to Bitfinex for the stress and turmoil caused by his actions, expressing his regret and self-hatred for the harm inflicted.
Legal Proceedings and Restitution Efforts
Lichtenstein has been actively engaged in returning the stolen assets as part of his plea agreement and is set to continue these efforts. A restitution hearing is scheduled for February to decide the allocation of the recovered funds, whether they should go to Bitfinex or its affected customers.
Heather Morgan’s Role and New Ventures
Heather Morgan, also known by her alias “Razzlekhan,” has pleaded guilty to charges of money laundering conspiracy and conspiracy to defraud the United States. Prosecutors revealed that Morgan became aware of the Bitfinex hack years after it occurred and was subsequently asked by Lichtenstein to assist in laundering the stolen Bitcoin. Morgan, known for her quirky rap videos, has since embarked on a new venture, selling custom videos on Cameo. Her prison sentence is expected to commence in the near future.
Documentary Discrepancies and Future Plans
Despite claims made in the Netflix documentary that a large portion of the stolen funds remain unaccounted for, Lichtenstein refuted these assertions. He stressed that all funds have been accounted for and expressed a desire to set the public record straight. Morgan echoed this sentiment, expressing eagerness to debunk myths and share their side of the story.
Looking Ahead: A Career in Cybersecurity
Upon completing his prison sentence, Lichtenstein plans to transition into a career focused on combating cybercrime. Previously, he expressed regret for misusing his talents in criminal activities and has since voiced his intent to contribute positively to society by leveraging his expertise in cybersecurity. Lichtenstein stated, “When I am released from prison … I plan to dedicate myself to working in the cybersecurity industry. I know the cyber threats that we face and I know how to stop them.”
Recovering the Stolen Assets
The 2016 Bitfinex hack involved a theft of Bitcoin valued at $70 million at the time, which would be worth approximately $12 billion today. While the Netflix documentary leaves viewers with the impression that a substantial amount of the stolen funds is still missing, Lichtenstein’s lawyer, Samson Enzer of Cahill Gordon & Reindel LLP, has clarified that nearly all of the assets have been recovered. This includes approximately 114,601 BTC, representing 96% of the 119,754 BTC taken in the hack, along with 29 additional assets of substantial value.
