US prosecutors have recommended that Heather Morgan be sentenced to 18 months in prison for her involvement in laundering 119,754 Bitcoins (BTC) stolen from the cryptocurrency exchange Bitfinex in 2016.

In 2022, Morgan and her husband, Ilya Lichtenstein, were arrested in connection with the high-profile case. The couple was charged with conspiracy to launder the proceeds from a hacker attack. Over 94,000 BTC, valued at $3.6 billion at the time of seizure, were confiscated from them. Despite the accusations, Lichtenstein denies his involvement in the hack on the platform.

Guilty Plea and Potential Sentences

On August 3, 2023, the couple pleaded guilty to money laundering charges. Lichtenstein faces up to 20 years in prison, while Morgan’s maximum sentence could be up to 10 years. The final verdicts are set to be handed down on November 14 and 15, 2024.

Prosecutors have requested 18 months of imprisonment for Morgan, a significantly reduced sentence. This leniency is due to her active cooperation with the investigation as part of a plea agreement.

Evidence and Case Details

Investigators found that Morgan and Lichtenstein used various technologically advanced methods to cover their tracks, including using cryptocurrency exchanges with no KYC procedures, dark web markets, and cryptocurrency mixers.

Additionally, part of the stolen funds was spent on purchasing gold coins, which Morgan buried in a secret location. The authorities later uncovered this hiding spot.

Additional Measures

In addition to the prison sentence, prosecutors have called for the confiscation of cryptocurrency assets and property worth $7.6 billion to compensate the Bitfinex exchange, which they have identified as the primary victim of the incident.

Conclusion

The case involving Morgan and Lichtenstein remains one of the most discussed in the cryptocurrency world. It raises questions about security on crypto exchanges and the measures being taken to combat hacker attacks and money laundering in the digital space.