The main inspiration behind the movie Goodfellas passed away on Tuesday in Los Angeles after a long illness, reports TMZ.
As a gangster, Hill was involved in the 1978 Lufthansa heist at Kennedy Airport, and was later turned into an FBI informant after he was arrested for drug offences. His work with the FBI helped lock up dozens of criminals.
Hill later spent many years in a witness protection programme with his family, but was thrown out in the early 1990s due to several criminal acts.
In recent years, he guested on Howard Stern's radio show, opened the Wiseguys restaurant and brought out his own marinara sauce.
He was immortalised in Martin Scorsese's hugely popular 1990 film Goodfellas, based on the book Wiseguy by Nicholas Pileggi.
Ray Liotta portrayed Hill in the film, which charted his rise in the criminal world and his downfall with drugs and later arrest.
"The government said a couple of hundred million dollars went through my hands. But I just blew it on slow horses, women, drugs and rock 'n' roll," he said at the 20th anniversary of Goodfellas.
"We partied five, six nights a week and I was making $15,000 to $40,000 a week. That was just my end. But I was a degenerate gambler. I could lose $40,000 in a week."
Hill always stated that he only turned to the FBI because he knew he was going to get killed himself.
He served six months in jail in 2005 for drug possession while in Nebraska.
"There's always that chance that some young buck wants to make a name for themselves," he said in 2010. "I never thought I'd reach this wonderful age. I'm just grateful for being alive."
Watch the trailer for Goodfellas below: