Ilya Lichtenstein reportedly admits to being Bitfinex hacker

The husband of Razzlekhan admitted to being behind the 2016 attack in a courtroom on Thursday

article-image

solarseven/Shutterstock modified by Blockworks

share

Ilya Lichtenstein, husband of Heather ‘Razzlekhan’ Morgan, has admitted to being the original hacker behind the 2016 attack on crypto exchange Bitfinex.

According to a CNBC report, Lichtenstein made the confession during a plea hearing held in New York City on Thursday.

On July 20, Lichtenstein and Morgan entered into a plea deal, which included charges of money laundering conspiracy and conspiracy to defraud the United States. Additionally, they agreed to forfeit the cryptocurrency involved in the hack.

Neither of the defendants, however, were charged with the hack itself despite Lichtenstein reportedly admitting to being the hacker. 

Morgan and Lichtenstein were arrested in February of last year. The two were originally accused of conspiring to launder over 119,000 bitcoins, as well as initiating 2,000 unauthorized transactions on the Bitfinex platform. 

The recovered bitcoin was valued originally at $70 million but rose to as high as $3.6 billion at the time of their arrest.

“Those unauthorized transactions sent the stolen bitcoin to a digital wallet under Lichtenstein’s control,” court documents at the time alleged. “Over the last five years, approximately 25,000 of those stolen bitcoin were transferred out of Lichtenstein’s wallet via a complicated money laundering process that ended with some of the stolen funds being deposited into financial accounts controlled by Lichtenstein and Morgan.”

Morgan’s plea hearing will take place later Thursday. She was previously released on a $3 million bond. Lichtenstein was denied bail and has been in jail since his arrest.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (8).png

Research

Kinetiq has established itself as Hyperliquid's dominant liquid staking protocol, holding 82.5% of LST market share with $610M in TVL. The protocol is now expanding beyond its kHYPE staking core into higher take-rate verticals: iHYPE for institutional custody rails, Launch for HIP-3 capital formation, and Markets for builder-deployed perpetuals. We view Markets, launching Jan. 12, as the highest-potential product line given its mechanically scalable, activity-linked unit economics. Near-term revenue remains anchored by kHYPE's KIP-2 fee schedule (~$1.6M annualized), while Markets provides embedded optionality if HIP-3 economics normalize post-Growth Mode. KNTQ's setup is relatively clean: zero insider unlocks until November 2026, 6.2% buyback yield from staking revenue, and cleared airdrop overhang. Risks center on unproven Markets execution, declining kHYPE TVL despite ongoing incentives, and competition from Hyperliquid's native initiatives.

article-image

BTC finished the week up 1.6%, while L2s, RWAs and the treasury trade continued to grind lower

article-image

DTCC moves DTC-custodied Treasuries onchain via Canton, while Lighter’s LIT launches trading at a fees multiple in Hyperliquid territory

article-image

In the 90s, rapt audiences worldwide watched a coffee pot — will that fascination ever turn to crypto?

article-image

Some systems improve by failing — and crypto has no choice

article-image

Yield Basis introduces an IL-free AMM design that already dominates BTC DEX liquidity

article-image

Maybe tokenholders don’t need the rights that corporate shareholders have come to expect

Newsletter

The Breakdown

Decoding crypto and the markets. Daily, with Byron Gilliam.

Blockworks Research

Unlock crypto's most powerful research platform.

Our research packs a punch and gives you actionable takeaways for each topic.

SubscribeGet in touch

Blockworks Inc.

133 W 19th St., New York, NY 10011

Blockworks Network

NewsPodcastsNewslettersEventsRoundtablesAnalytics