A computer expert has been sentenced to five years in prison for stealing bitcoin worth billions of dollars and laundering the hacked cryptocurrency with the help of his wife. The mastermind behind one of the largest-ever thefts from a virtual currency exchange, the defendant meticulously planned the theft, according to federal prosecutors.
The defendant, a U.S. citizen born in Russia, hacked into a virtual currency exchange in 2016 and stole approximately 120,000 bitcoin, valued at over $7.6 billion at current market prices. Following the theft, he engaged in complex transactions to conceal the stolen funds, enlisting his wife's help in the process.
Both the defendant and his wife pleaded guilty to money laundering conspiracy charges. The defendant expressed remorse for his actions, stating that he hopes to apply his expertise to fight cybercrime upon release from prison. Prosecutors recommended a five-year prison sentence for the defendant and an 18-month sentence for his wife.
Authorities seized over $6 billion in stolen funds, with the couple successfully laundering about 21% of the stolen money. The hack had a significant impact on the virtual currency exchange, accounting for approximately 36% of the company's assets at the time of the theft.
The defendant cooperated with federal authorities after his arrest, assisting in other cybercrime investigations. Defense attorneys emphasized that the majority of the stolen funds were recovered and that the defendant was not inherently malicious but had made serious mistakes.
Bitcoin, the largest and oldest cryptocurrency, operates without government or banking backing and uses blockchain technology to record transactions. The case highlights the challenges posed by cybercrime in the cryptocurrency space and the importance of holding individuals accountable for such crimes.
