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New York Couple to Plead Guilty in $4.5 Billion Bitcoin Laundering Case
(CTN News) – A New York couple, Ilya Lichtenstein and Heather Rhiannon Morgan, charged with attempting to launder $4.5 billion in Bitcoin stolen during a 2016 Bitfinex hack, are reportedly preparing to plead guilty.
The couple had initially pleaded not guilty to the charges, but the recent appearance of a new charging document indicates their intention to change their plea.
The couple was previously charged with money laundering conspiracy and conspiracy to defraud the United States. However, the recent filing of an “information” document in a Washington, D.C. federal court suggests that the charges may have been modified or reduced. The specifics of the new charges have not been disclosed to the public.
Ilya Lichtenstein and Heather Rhiannon Morgan have been ordered to appear in court on August 3 for separate arraignments and plea hearings related to the new “information” document. This document is commonly used when defendants agree to plead guilty in federal cases.
An “information” is a charging document employed by federal prosecutors when defendants decide to plead guilty. It provides key details about the charges, statutory provisions, elements of the offense, plea agreements, penalties, and federal sentencing guideline calculations.
The couple’s legal ordeal began in February 2022 when they were arrested and charged with the attempt to launder 119,754 bitcoins stolen from Bitfinex in August 2016. It’s essential to note that the couple was not charged with the hack of the Hong Kong-based cryptocurrency exchange.
Shortly after their arrest, the Department of Justice (DOJ) successfully seized over 94,000 bitcoins linked to the hack, valued at approximately $3.6 billion. This seizure marked the largest financial confiscation in the history of the DOJ.
Over five years, approximately 25,000 stolen bitcoins were transferred from Lichtenstein’s wallet through an intricate money laundering process. Ultimately, according to the DOJ, some of the illicit funds ended up in financial accounts controlled by Lichtenstein and Morgan.
Conclusion:
The New York couple’s case has seen multiple continuations since their initial arrest. With their court date approaching, Ilya Lichtenstein and Heather Rhiannon Morgan seem poised to change their plea in the $4.5 billion Bitcoin laundering case. The details of the new charges will likely be unveiled during the forthcoming plea hearings.
