US Justice Department Launches Website for Bitfinex Hack Victims, But Help Might Be Limited
The U.S. Department of Justice (DoJ) has launched a website aimed at collecting statements from individuals affected by the infamous 2016 Bitfinex hack. However, those hoping for significant support may be disappointed.
In 2022, Ilya Lichtenstein and Heather Morgan, a married couple, were charged with attempting to launder over $4 billion worth of Bitcoin stolen during the hack. The U.S. government has since seized approximately $3.6 billion in assets from the pair—the largest financial seizure in history, both in crypto and traditional finance.
Lichtenstein and Morgan are accused of conspiring to launder 119,754 Bitcoin stolen in the hack, which exploited vulnerabilities in the centralized crypto exchange, Bitfinex. According to Deputy Attorney General Lisa Monaco, “In a futile effort to maintain digital anonymity, the defendants laundered stolen funds through a labyrinth of cryptocurrency transactions.”
The DoJ Initiative
The new DoJ initiative invites individuals to share how the hack and subsequent laundering attempts affected them. However, the department’s official stance, as outlined in the announcement, is that under the Crime Victims’ Rights Act (CVRA), the offenses in this case technically have no “victims.” The DoJ clarified, “This notice is being provided out of an abundance of caution.” This suggests that it’s unclear whether affected parties will receive any restitution or formal recognition as victims.
Adding another twist, Morgan’s defense team recently released a sentencing memo in which she claims, “In 2020, I learned that my husband Ilya Lichtenstein committed a serious crime in 2016. When he told me what he had done, I was in complete shock. I made the poor decision to get involved in Ilya’s crime.” Morgan further explained that she participated in the scheme out of fear for her husband’s future, as they were planning to start a family together.
For those impacted by the Bitfinex hack, this DoJ website may be their only avenue to share their experience, though whether it will lead to meaningful compensation or justice remains uncertain.
Brave New Coin reaches 500,000+ engaged crypto enthusiasts a month through our website, podcast, newsletters, and YouTube. Get your brand in front of key decision-makers and early adopters. Don’t wait – Secure your spot and drive real impact in Q4. Find out more today!