A New York couple infamously referred to as "Bitcoin Bonnie and Clyde" has pleaded guilty to charges of laundering billions of dollars in stolen bitcoin, prosecutors said.
According to AFP, Ilya Lichtenstein, 35, and Heather Morgan, 33, were taken into custody in February 2022 after the US government seized 95,000 bitcoin, with a valuation of $3.6 billion during that period.
Prosecutors disclosed that the couple had acquired these digital assets utilizing sophisticated hacking techniques back in 2016. Authorities effectively tracked and recovered the stolen funds from wallets overseen by the pair.
After their apprehension, an additional sum of roughly $475 million, linked to the cyberattack, has been confiscated by the Southern District of New York, according to an official announcement.
'Bitcoin Bonnie and Clyde' Money Laundering Schemes
Lichtenstein and Morgan have admitted their involvement in money laundering schemes associated with the misappropriation of about 120,000 bitcoin from Bitfinex, a prominent global cryptocurrency exchange. The charges against them hold the potential for a maximum prison sentence of 20 years.
The prosecutors revealed that Lichtenstein, at times with Morgan's collaboration, employed intricate methods for laundering. These tactics encompassed the creation of fake identities to establish online accounts alongside the automation of transactions using computer programs.
The stolen funds were channeled into diverse accounts within the darknet markets and cryptocurrency exchanges. Following this, the pair proceeded to withdraw the funds, effectively obscuring the trail of transactions.
Additionally, they transformed bitcoin into alternative forms of cryptocurrency and even converted some of the stolen assets into gold coins, which Morgan then concealed by burying them.
While pursuing their illicit endeavors, the couple adopted aliases. Morgan used "Razzlekhan," while Lichtenstein operated under the name of "Dutch." The prosecutors said that Lichtenstein took steps to cover his tracks and enlisted his wife's help in laundering the funds.
Their distinctive narrative led to them being playfully dubbed "Bitcoin Bonnie and Crypto Clyde," a title the financial newsletter Morning Brew bestowed upon them.
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The Lives of 'Bitcoin Bonnie and Clyde'
CNN reported that their lives after being apprehended have attracted significant attention within the media landscape of New York. The couple's distinctiveness was highlighted by their practice of strolling with their Bengal cat, Clarissa, on a leash throughout Manhattan.
Morgan, recognized for her online music persona and lyrics, raps about being "the crocodile of Wall Street." In her Twitter bio, she also characterized herself as a multi-faceted individual, noting that she is a "tech entrepreneur, surrealist artist, rapper, prolific writer, & fashion designer with synesthesia."
Morgan will be subjected to house arrest, while Lichtenstein, originally hailing from Russia, will remain in custody as he awaits his sentencing. Lichtenstein has participated in a collaboration agreement with the authorities, committing to provide testimony and cooperate with law enforcement as necessary.
He has also pleaded guilty to the charge of conspiring to commit money laundering, which could potentially lead to a maximum prison term of 20 years.
On the other hand, Morgan has admitted guilt to accusations of participating in a money laundering conspiracy and conspiring to defraud the United States. These charges carry the possibility of a maximum prison sentence of five years each.
In the event that their cooperation is deemed advantageous to government prosecutors, they can ask the judge to consider sentences that fall below those guidelines.
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