Razzlekhan’s Husband, the Bitfinex Hacker, Makes First Public Statement Since Arrest

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Ilya Lichtenstein’s First Public Statement Since Arrest

Ilya Lichtenstein, who pleaded guilty last year to charges related to the 2016 theft of 120,000 bitcoin from Bitfinex, has made his first public statement since his 2022 arrest.

Denies Speculation of Father’s Involvement

In a five-minute video posted to X (formerly Twitter) on Thursday, Lichtenstein reiterated that he was the hacker and that he acted alone, denying speculation in a Netflix documentary that his father (or, perhaps, some spy agency, maybe Russia’s) might have been involved in the theft.

“My dad is no hacker, he doesn’t even know how to use Instagram,” said Lichtenstein, who was sentenced to five years in prison for conspiracy to commit money laundering, including the time he was incarcerated after the arrest while the case was pending.

Apologizes to Bitfinex for the Stress Caused

“I offer my sincerest apologies to Bitfinex for all the stress that I have caused them,” he said in the video, recorded from prison during a remote visit with his wife. “I knew what I was doing was wrong and I did it anyway because I didn’t care … I look back at the person I was then, and I hate myself. I hate myself.”

Update on Restitution

In the video, Lichtenstein also provided an update on restitution for the funds he stole from Bitfinex.

“For the past three years, I have worked hard to account for and return all assets down to the last satoshi, as required by my plea agreement, and I will continue to do so,” Lichtenstein said, showing bags under his eyes.

A restitution hearing is set for February to determine whether the funds should be distributed to Bitfinex or to its customers who were affected by the hack.

Razzlekhan Speaks

Lichtenstein’s wife, Heather “Razzlekhan” Morgan, pleaded guilty to one count of money laundering conspiracy and one count of conspiracy to defraud the United States.

Prosecutors said she became aware of the hack only years after the fact and was enlisted by her husband to launder the stolen bitcoin.

“In many ways, my wife … is just another victim of my bad decisions,” Lichtenstein said in the video.

Last month, Morgan was sentenced to 18 months in prison for her supporting role in Lichtenstein’s crimes.

“It’s nice to begin to have the public record surrounding our case set straight,” Morgan told CoinDesk, referring to the video her husband released. “You would think that would have happened after our sentencing memos got filed, but that really hasn’t been the case. There are so many myths that I look forward to debunking when we tell the real story.”

Takes One to Catch One

Atoning for his misdeeds in court, Lichtenstein said that after he serves his time, he plans to pursue a career fighting cybercrime.

In Tuesday’s video, Lichtenstein reiterated that pledge.

“When I am released from prison … I plan to dedicate myself to working in the cybersecurity industry,” Lichtenstein said. “I know the cyber threats that we face and I know how to stop them.”

Conclusion

In conclusion, Ilya Lichtenstein has made his first public statement since his arrest, denying speculation about his father’s involvement in the 2016 theft of 120,000 bitcoin from Bitfinex. He apologized to Bitfinex for the stress caused and provided an update on restitution, stating that he will continue to work hard to account for and return all assets.

FAQs

Q: What is the current status of Lichtenstein’s case?

A: Lichtenstein has pleaded guilty to charges related to the 2016 theft of 120,000 bitcoin from Bitfinex and is currently serving a five-year prison sentence.

Q: What is Razzlekhan’s role in the case?

A: Razzlekhan, Lichtenstein’s wife, pleaded guilty to one count of money laundering conspiracy and one count of conspiracy to defraud the United States.

Q: What is Lichtenstein’s plan after his release from prison?

A: Lichtenstein plans to pursue a career fighting cybercrime and has reiterated his pledge to dedicate himself to working in the cybersecurity industry.

Q: What is the current status of the restitution hearing?

A: A restitution hearing is set for February to determine whether the funds should be distributed to Bitfinex or to its customers who were affected by the hack.