US DOJ seeking statements about Bitfinex hack despite lack of formal victims

The DOJ invites statements from anyone potentially harmed as it prepares for the sentencing of those involved in the Bitfinex case.

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The US Department of Justice (DOJ) has launched a website to collect information from individuals affected by the 2016 Bitfinex hack, according to a Nov. 7 statement.

The DOJ announced it was inviting statements from those impacted by the hack, including affected Bitfinex account holders. This initiative aims to gather details on how the hack affected these individuals.

Interestingly, the DOJ clarified that, under the Crime Victims’ Rights Act (CVRA), it does not recognize any “victims” related to the offenses in this case. However, the department stated that it was cautiously proceeding with the initiative.

The DOJ said it is seeking statements from anyone potentially harmed by the defendant’s actions, including details relevant to the upcoming sentencing of those involved.

In an Oct. 8 court filing, the DOJ identified Bitfinex as the only party eligible for restitution. It also noted that it is unaware of any other individuals who meet the CVRA’s definition of a victim in this case.

Bitfinex hack

The 2016 hack occurred when Ilya Lichtenstein reportedly accessed Bitfinex’s systems and stole approximately 120,000 Bitcoin, valued at $72 million at the time. With the increase in Bitcoin’s value, this amount now totals around $9.2 billion.

After the theft, Lichtenstein and his wife, Heather Morgan, who goes by the alias “Razzlekhan,” used several complex methods to launder the funds. Their tactics involved using multiple transaction layers, crypto mixers, non-compliant exchanges, and darknet markets. The couple also moved proceeds of the hack through bank accounts in and outside the US.

Last month, prosecutors recommended an 18-month prison sentence for Morgan for her role in money laundering and a five-year sentence for Lichtenstein. Morgan is seeking a sentence of time served to avoid further imprisonment.

Lichtenstein is scheduled for sentencing on Nov. 14, followed by Morgan’s sentencing the next day.

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