Ilya Lichtenstein, the individual behind the infamous 2016 Bitfinex hack, has confessed to his role in the crime and has entered a guilty plea for money laundering. The Bitcoin stolen during the hack, which was worth $70 million at the time, has now appreciated to a staggering $4.5 billion.

Lichtenstein’s admission of guilt was made in a federal court in Washington, D.C. While the charges brought against him and his wife, Heather Rhiannon Morgan, by the Department of Justice (DOJ) pertain to money laundering, they are not directly linked to the initial hack. In February 2022, the DOJ confiscated over 94,000 of the approximately 119,000 Bitcoin stolen in the hack, marking the largest seizure in its history.

Bitfinex, a leading cryptocurrency exchange, fell victim to a significant security breach in 2016, resulting in the loss of 119,000 Bitcoin. The hacker’s identity remained a mystery until Lichtenstein confessed to his involvement.

Earlier this year, the couple was apprehended, and the confiscated Bitcoin, valued around $3.6 billion, was found to be part of a complex money laundering operation. This operation involved Lichtenstein traveling to Ukraine and Kazakhstan to convert the digital assets into cash through intermediaries in Russia and Ukraine.

Lichtenstein is currently in custody awaiting sentencing for conspiracy to commit money laundering. As part of his plea agreement, he has pledged to cooperate with federal investigators. Morgan, who has been out on a $3 million bond since her arrest, was present in court during her husband’s plea hearing.

Additional details revealed during the plea hearing include Lichtenstein’s conversion of some of the assets into gold coins and Morgan’s role in hiding them. A document filed last month also disclosed the couple’s use of small, intricate transactions to disguise the stolen funds.