Feds Demand 18-Month Jail Term for Bitfinex Hacker Razzlekhan

Heather Morgan, also known as the rapper “Razzlekhan,” faces up to 18 months in prison for her role in laundering 120,000 Bitcoin stolen from the Bitfinex exchange in 2016. However, prosecutors have recommended a lenient sentence due to her cooperation and assistance in the case.

Morgan pleaded guilty to money laundering and fraud charges in August 2023 as part of a plea bargain with the government.

Prosecutors have requested a reduced sentence for Morgan in recognition of her substantial assistance in the case.

While Morgan was initially unaware of her husband’s involvement in the Bitfinex hack, she later became complicit in laundering the stolen funds.

Morgan and her husband used various methods to conceal their involvement, including non-compliant crypto exchanges, darknet markets, and crypto mixers.

The government has seized crypto assets worth over $6 billion from the Bitfinex Hack Wallet, which will be returned to Bitfinex as restitution.

Morgan’s sentencing hearing is scheduled for November 15th, following her husband Ilya Lichtenstein’s sentencing on November 14th.

The case against Heather Morgan highlights the complexities of cryptocurrency-related crimes and the challenges faced by law enforcement agencies in investigating and prosecuting such cases. The outcome of the sentencing hearings will have significant implications for the cryptocurrency industry and the enforcement of laws related to digital assets.