Kriti Mehrotra
With Netflix’s ‘Biggest Heist Ever’ exploring the tale of the couple who eventually became known as Bitcoin Bonnie and Clyde, we get a documentary film that is simply intriguing. That’s because it shines a light upon not just Heather Morgan and Ilya Lichtenstein’s past but also their passions, interests, as well as relationship right until their 2022 arrest. That’s when they were apprehended for stealing 120,000 bitcoins worth $72 million from the renowned cryptocurrency exchange Bitfinex in 2016, only for them to be worth over $4.5 billion by 2022.
Ilya Lichtenstein Always Had an Interest in Computers and Hacking
Although born in Rostov, Russia, Ilya was raised in the small town of Glenview, Illinois, just outside of Chicago, where he developed a passion for video games and computers at an early age. The truth is his school helped expand it too, especially considering he was enrolled in a very avant-garde program called TREE – Technology Rich Educational Environment. He was reportedly a bit of an outcast at the time owing to his laser focus, and he was even bullied owing to his Russian background, but he always took it with his head held high.
As if that’s not enough, according to the aforementioned film, Ilya was likely also exposed to the world of hacking at a relatively early age, owing to his father, Yevgeniy “Eugene” Lichtenstein. That’s because the latter was once reportedly also known as Deuce, the man who allegedly hacked into the First National Bank of Indiana before also hacking into an FBI device, only to never be charged. As per the film, he was positively identified and even questioned by the federal authorities, yet he was never charged for any offense owing to his immediate cooperation.
Ilya Lichtenstein is an Entrepreneur and Self-Proclaimed Hacker
According to Ilya’s own accounts per his blog called Influence Hacks, he was a “huge geek” throughout high school. He studied hard and was the captain of several STEM-based teams, which eventually helped him later on in life as a leader. He actually enrolled at the University of Wisconsin, Madison, to pursue a degree in psychology as soon as he was able, only to relocate to Silicon Valley in California upon graduating in 2010. He was actually determined to establish a name for himself in the tech industry, which is how he ended up launching a myriad of online ventures before finding his calling with MixRank.
As per records, Ilya briefly ran a dating site as well as a site that sold supplements before working on a hacking tool to circumvent CAPTCHA before establishing MixRank. This business was actually a data-based marketing startup that even received funding from billionaire Mark Cuban within its first year, only to then take off to new heights. By this point, Ilya had also gotten romantically involved with fellow Silicon Valley entrepreneur, Salesfolk Founder and CEO, Heather Morgan. He had initially met her through a program for up-and-coming entrepreneurs called 500 Startups, where he was a mentor.
However, in late 2016, right as MixRank was getting successful, Ilya decided to step away from his role without any notice – this was mere months following the August Bitfinex hack. According to the documentary, that’s when his and Heather’s extravagant lifestyle began, starting with them relocating to New York for good – they even lived on 75 Wall Street. This, along with the pattern of the hack being eerily similar to how his father allegedly hacked the bank, is one of the many reasons many believe he was responsible for it. The fact the Bitcoin blockchain pointed at him and Heather didn’t help matters either.
Ilya Lichtenstein is Currently Behind Bars For His Offenses
It was in January 2022 when the authorities raided Ilya and Heather’s home on the basis of circumstantial evidence, only to uncover a treasure trove of additional ones that ended up being their downfall. They had burner phones, hollowed-out books, ready international passports, a former suspicious trip to Ukraine, and additional evidence that turned this case into a cause for national security concern. Nevertheless, neither Ilya nor Heather halted their lifestyle in any way, shape, or form, only to be arrested when the FBI finally found the key to the stolen bitcoins among their belongings. It was in February 2022 that the couple was arrested, but while Heather was released pending court proceedings, Ilya was kept detained because he was considered a flight risk. After all, he had a Russian passport and ties to that land that go back generations.
The fact Ilya was referred to as Dutch by his girlfriend-turned-wife didn’t help matters either, especially since many believe he paid tribute to his father through this. While Deuce means Hand of God, Deus or Dutch means God Machine. However, it wasn’t until August 3, 2023, that things became clearer, with Ilya and Heather both pleading guilty to one count each of conspiracy to commit money laundering. Furthermore, the former admitted that he was the one behind the actual Bitfinex theft, only for his then-girlfriend to help him launder the money as it grew in value when she found out about it later on.
According to the Department of Justice, following this theft, worth $4.5 billion by the arrests, the couple “employed numerous sophisticated laundering techniques” and were able to move at least a billion dollars. Ilya has reported since directed officials to the location of most of this money, yet he has maintained there is more to this story than meets the eye without elaborating further. In any case, in November 2024, he was sentenced to 5 years in prison plus 3 years of supervised release, with credit for time served. We should also mention his plea deal indicated him possibly entering into the Witness Protection Program following his release if he is accepted, which is admittedly strange for just a financial crime, but officials have remained tight-lipped about the reason behind it.
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