In the latest development of the Bitfinex hack saga, Heather Morgan, known as “Razzlekhan,” was sentenced to 18 months for laundering the 120,000 Bitcoin stolen in 2016. The court’s ruling follows her husband’s 5-year prison sentence for money laundering and conspiracy to steal. .
Razzlekhan: from rapper to ‘Bitcoin Bonnie’
Heather Morgan, wife of the mastermind behind the massive 2016 Bitfinex hack, was convicted Monday by a federal judge in Washington for helping her husband, Ilya Lichtenstein, launder nearly 120,000 Bitcoin (BTC).
Morgan is also known for her rap videos under her stage name ‘Razzlekhan’. The self-titled ‘Crocodile of Wall Street’ has racked up hundreds of thousands of views in her videos, which went viral following the couple’s arrest in 2022.
Morgan’s husband, according to the U.S. Department of Justice (DOJ). used advanced hacking techniques and tools to gain access to Bitfinex’s network. After breaching the crypto exchange, Lichtenstein transferred 119,574 Bitcoin to one of his crypto wallets through more than 2,000 transactions.
The stolen funds were estimated at approximately $71 million in 2016. However, its value has risen significantly over the years and is now worth almost $11 billion, after Bitcoin rose above $90,000 in the past seven days.
Despite not being involved in the hack, Morgan helped her husband launder the stolen Bitcoin, using “numerous sophisticated money laundering techniques” to disguise the money.
According to prosecutors, Lichtenstein declared that Morgan only found out about the hack in 2019, but asked for her help to hide the money “without explaining what exactly he did.” The couple reportedly managed to launder 21% of the stolen money.
The “Bitcoin Bonnie and Clyde” used fake identities to create online accounts, deposited the stolen Bitcoin on various darknet markets and crypto exchanges to withdraw the funds, converted Bitcoin into other cryptocurrencies and deposited some of the funds in crypto mixers.
Bitfinex Hack Saga Ends With Reduced Jail Time
In August 2023, Morgan and Lichtenstein pleaded guilty to conspiracy to commit money laundering. On November 18, Judge Colleen Kollar-Kotelly sentenced Morgan to 18 months, four days after her husband’s sentencing.
Prosecutors argued that she “certainly was a willing participant and bears full responsibility for her actions.” However, they noted that Morgan was “a lower-level competitor,” which resulted in her sentence being reduced.
Despite cooperating with authorities and appearing “genuinely remorseful and unlikely to be a repeat offender,” the judge believed Morgan should go to prison to set an example and help deter others from similar crimes.
Meanwhile, Lichtenstein received a five-year prison sentence after cooperating with authorities in other crypto hacks. During his sentencing hearing, the mastermind behind the Bitfinex hack reportedly expressed remorse for using his talents for criminal activities “rather than for positive contributions to society.”
After the news of her sentence, Morgan issued a statement about
Ultimately, she announced that she would share her story and thoughts now that the case is over. As reported by Bitcoinist, Amazon given the green light a film titled “Razzlekhan” about the Bitfinex hack earlier this year and will collaborate with MGM Studios on the production.
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