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.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

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

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Pineapple begins deploying its $100 million Injective Digital Asset Treasury, staking INJ to earn yield and fund onchain mortgage ambitions

by Blockworks /
article-image

Staking levels in the ether funds will depend on protocol unstaking queue times and anticipated redemption activity, firm says

article-image

ETF inflows, miner strength, and tightening supply drive Bitcoin past its prior peak amid renewed demand for scarce assets

by Blockworks /
article-image

The Guidestar team, led by Alex Nezlobin, will join Uniswap Labs to enhance automated market maker design and smart order routing

by Blockworks /
article-image

Zac Prince spearheads Galaxy’s push into consumer banking with high-yield cash, crypto, and stock trading features

by Blockworks /