Bitcoins
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- Prosecutors have recommended an 18-month prison sentence for Heather Morgan, also known as the rapper “Razzlekhan,” for her role in laundering stolen Bitcoin
- Morgan played a lesser role compared to her husband, Ilya Lichtenstein, who admitted to orchestrating the 2016 Bitfinex hack
- She has cooperated with authorities, providing substantial assistance, which prosecutors cited in their call for a more lenient sentence
Federal prosecutors are asking for an 18-month prison term for Heather Morgan, who pleaded guilty in August 2023 to her involvement in laundering funds stolen during the 2016 Bitfinex hack. Prosecutors argue that Morgan was a lower-level participant compared to her husband, Ilya Lichtenstein, who was responsible for hacking the cryptocurrency exchange and stealing around 120,000 bitcoinc. The pair conspired to launder the stolen funds, but Morgan’s assistance with the investigation has led to a request for a lighter sentence.
Bitcoins Lichtenstein Hacked Bitfinex
Morgan, known for her rap persona “Razzlekhan,” and Lichtenstein were arrested in 2022 after authorities uncovered their involvement in laundering $4.5 billion in cryptocurrency stolen from Bitfinex. Lichtenstein eventually admitted to hacking the exchange in addition to laundering the funds and faces up to 20 years in prison as a result.
Prosecutors have acknowledged Morgan’s cooperation and her more limited involvement in the initial theft, with court documents claiming that she was unaware of her husband’s role in the hack but later helped him launder the stolen Bitcoin.
Bitcoins Morgan Eventually Helped Launder Funds
In their filing, prosecutors emphasized that Morgan had made a “conscious decision” to participate in the laundering scheme, which included using various tools like darknet markets and crypto mixers to hide the trail of the funds:
She was in some ways thrust into the middle of a serious criminal scheme without her initial consent, and undoubtedly felt compelled to support it out of a sense of loyalty to her husband and desire to preserve their life together. That does not negate the seriousness of her conduct, as she did ultimately join her husband’s conspiracy and use her own skillset to aid and enhance his criminal endeavors.
As a result of this reduced role, prosecutors are advocating for a significantly reduced sentence of 18 months, with sentencing set to take place in November, where Morgan could technically face up to 10 years.
She has not yet revealed whether Razzlekhan will be releasing a song to memorialize her experience.
Mark Hunter Read More