The person behind the notorious hacking of the Bitfinex crypto exchange that stole billions of dollars price of digital coins could spend the following five years in a state penitentiary once the decision against him is made in November.

Due to his role within the heist, state attorneys urged the federal court in Washington to impose a heavier punishment against Ilya Lichtenstein.

Lichtenstein, The Brains Behind The Heist

Estimates suggested that around $8 billion price of Bitcoin from the Bitfinex crypto exchange were stolen. This well-planned criminality underscored the unique risks related to cryptocurrency, highlighting the importance of cybersecurity on this emerging field.

The hacking incident was a turning point that prompted players within the cryptocurrency market to speak about security measures, regulatory scrutiny, and the long run of exchanges.

If Lichtenstein is slapped with a five-year sentence, it will be a vital step in resolving the cybercrime issues affecting the crypto space immediately.

Further, the case’s resolution might as well have an effect beyond the courtroom. It could emphasize the role of accountability within the cryptocurrency landscape in dissuading people from similar illegal activities in the long run.

The Hacking Incident

In August 2016, well-known cryptocurrency exchange Bitfinex announced that its platform had been breached resulting in the lack of billions of dollars price of user’s Bitcoin.

Reports state that Lichtenstein used a flaw within the exchange’s technology to get into Bitfinex traders’ wallets together along with his associates.

Total crypto market cap at $2.27 trillion on the every day chart: TradingView.com

From 1000’s of Bitfinex users, Lichtenstein, his wife and one other accomplice, effectively pilfered around 120,000 Bitcoin.

Given Bitfinex is amongst the main participants within the virtual asset market, the degree of the hacking caused shockwaves across the digital currency scene.

After the incident was announced, Bitcoin’s value dropped noticeably. The entire crypto space felt uncomfortable because it begged the query of whether industrial web sites have sufficient security mechanisms in place.

Lichtenstein Pleaded Guilty In 2023

Last 12 months, Lichtenstein admitted his involvement within the 2016 crypto heist in Bitfinex. In response to investigators, they’ve found a blockchain trail that results in Lichtenstein’s wallet, raising suspicion of his involvement within the crime.

It took state prosecutors and law enforcers six years before they found the stolen money. They found that almost all of the cash was still in Lichtenstein’s wallet.

Seven years had passed because the crypto heist before Lichtenstein pleaded guilty of being the mastermind of the 2016 cyberattack on Bitfinex. Lichtenstein and his wife are still awaiting their sentence for the crime they’ve committed.

Consequences Of The Crime

The Bitfinex breach elevated the stakes within the cryptocurrency space and led to heightened regulatory attention from international governments.

Following the hack, calls for more precise restrictions arose as regulatory organizations began to focus more intently on the safety and operating procedures of cryptocurrency exchanges.

Featured image from signature-vegetale.com, chart from TradingView