The man behind Notorious Cryptocurrency exchange Bitfinex hacked A person who stole billions of dollars worth of cryptocurrencies could spend the next five years in a state prison once he is sentenced in November.
Because of his role in the robbery, state attorneys urged the federal court in Washington to impose a harsher sentence against Elijah Lichtenstein.
Lichtenstein, the mastermind behind the robbery
It is estimated that approximately $8 billion worth of Bitcoin was stolen from cryptocurrency exchange Bitfinex. This well-planned illegal activity has highlighted the unique risks associated with cryptocurrencies, highlighting the importance of cybersecurity in this emerging field.
The hacking incident was a turning point that pushed players into… Cryptocurrency market To talk about security measures, regulatory scrutiny, and the future of stock exchanges.
If Liechtenstein is sentenced to five years in prison, it will be a decisive step in resolving the cybercrime issues affecting the cryptocurrency space currently.
Furthermore, the decision of the case may also have an impact beyond the courtroom. It could underscore the role of accountability in the cryptocurrency scene in discouraging people from carrying out similar illegal activities in the future.
Hacking incident
In August 2016, popular cryptocurrency exchange Bitfinex announced that its platform had been hacked resulting in the loss of billions of dollars in user rights. Bitcoin.
Reports indicate that Liechtenstein used a flaw in the exchange’s technology to access the wallets of Bitfinex traders along with his partners.
Total crypto market cap at $2.27 trillion on the daily chart: TradingView.com
Among thousands of Bitfinex users, Lichtenstein, his wife and another partnereffectively stole around 120,000 bitcoins.
Since Bitfinex is among the major participants in the virtual assets market, the degree of hacking has sent shockwaves across the cryptocurrency landscape.
After the incident was announced, the value of Bitcoin decreased significantly. The entire cryptocurrency space felt uneasy because it raised the question of whether trading websites have adequate security mechanisms.
Lichtenstein pleaded guilty in 2023
Last year, Liechtenstein admitted his involvement in the Bitfinex cryptocurrency theft in 2016. According to investigators, they found a blockchain trail leading to Liechtenstein’s wallet, raising suspicions about his involvement in the crime.
It took prosecutors and law enforcement six years before they discovered the stolen money. They found that most of the money was still in Liechtenstein’s wallet.
It had been seven years since the cryptocurrency heist before Liechtenstein pleaded guilty to being the mastermind of the 2016 cyber attack on the Bitfinex platform. Lichtenstein and his wife are still awaiting sentencing for the crime they committed.
Consequences of crime
The Bitfinex hack has increased risks in the cryptocurrency space and led to increased regulatory attention from international governments.
Following the hack, calls for more precise restrictions emerged as regulatory organizations began to focus more carefully on the security and operational procedures of cryptocurrency exchanges.
Featured image from Signature-vegetale.com, chart from TradingView