Government Filing on Bitfinex Hack Victim Status

Bitfinex could be the only victim after it was hacked in 2016 by Ilya Lichtenstein and Heather Morgan, as stated in a recent filing by the U.S. government.

>The government is not aware of any person who qualifies as a victim under the CVRA (Crime Victims' Rights Act) or for restitution under the MVRA (Mandatory Victim Restitution Act), beyond perhaps Bitfinex…

— U.S. Attorney for the District of Columbia

Lichtenstein and Morgan, along with Bitfinex's parent company iFinex, have asserted that the crypto trading platform is the sole victim according to the government filing.

After the hack, iFinex stated that customers could sell Bitfinex-issued tokens called BFX on the market or back to the platform for cash or iFinex stock, among other options.

>All customers holding BFX tokens chose to exercise one of those options, and as of April 3, 2017, all BFX tokens were fully redeemed.

— Filing Excerpt

The government expressed that it wants to allow Bitfinex accountholders an opportunity to advance potential claims ahead of sentencing, stating its intention to use various notification methods, including the Department of Justice's website.

Lichtenstein and Morgan, who is known by her rapper name “Razzlekhan,” pleaded guilty in August 2023 to money laundering conspiracy related to the 2016 Bitfinex hack. They allegedly attempted to launder 119,754 bitcoin tokens worth approximately $71 million at the time of the hack.

Morgan was arrested alongside Lichtenstein last year, facing charges of conspiracy to commit money laundering and conspiracy to defraud the U.S. Notably, prior to her arrest, Morgan gave advice on protecting businesses from cybercriminals and how to socially engineer access to sensitive information.

Sentencing for Lichtenstein is scheduled for November 14, and for Morgan on November 15.

A Bitfinex-created token, LEO, surged over 50% on Wednesday morning and was trading approximately 10% higher in the past 24 hours at the time of publication, according to The Block's price page.