A TikTok rapper and her husband are facing serious charges for their alleged involvement in a massive cryptocurrency heist that rocked the virtual currency world in 2016. Heather Morgan, 31, and Ilya ‘Dutch’ Lichtenstein, 34, both residents of New York, were taken into custody in Manhattan on Tuesday.
The couple stands accused of participating in a scheme to launder a staggering $4.5 billion worth of cryptocurrency stolen from the Bitfinex exchange. The theft, which saw 119,754 bitcoins unlawfully taken from the platform, is considered the largest crypto heist in history. Court documents reveal that the stolen bitcoins were funneled into a digital wallet controlled by Lichtenstein.
According to the US Department of Justice, over the past five years, approximately 25,000 of the pilfered bitcoins were moved out of Lichtenstein’s wallet through a complex money laundering process. Some of these ill-gotten funds were then deposited into financial accounts overseen by Lichtenstein and Morgan, while the remaining 94,000 bitcoins stayed in the wallet used to receive and store the illegal proceeds from the hack.
Federal agents, armed with search warrants, managed to recover more than 94,000 of the stolen bitcoins, valued at over $3.6 billion, by utilizing private keys found in online accounts controlled by Lichtenstein. These keys unlocked the digital wallet where the stolen funds had been transferred.
The alleged money laundering tactics employed by Morgan and her spouse were sophisticated, involving the use of automated computer programs to swiftly execute transactions. The stolen funds were deposited into accounts across various virtual currency exchanges and darknet markets before being withdrawn to obscure the money trail.
Both defendants have been charged with conspiracy to commit money laundering and conspiracy to defraud the United States. If found guilty on both counts, Morgan and Lichtenstein could each face a maximum sentence of 25 years in prison. Assistant Attorney General Kenneth Polite emphasized the significance of the case, highlighting the authorities’ ability to track money through the blockchain.
The case serves as a stark reminder of the risks associated with the growing cryptocurrency market and the importance of robust security measures to protect digital assets. As the investigation unfolds, the crypto community remains vigilant in safeguarding against future breaches and illicit activities in the digital realm.