In the latest development in the Bitfinex hack saga, Heather Morgan, known as “Razzlekhan”, has been sentenced to 18 months in prison for laundering 120,000 stolen bitcoins in 2016. The court decision comes after her husband was sentenced to 5 years in prison for money laundering and conspiracy to steal. . .
Razlikhan: From Rapper to “Bitcoin Bonnie”
Heather Morgan, the wife of the mastermind behind the massive 2016 Bitfinex hack, was as well convicted On Monday by a federal judge in Washington for helping her husband, Ilya Lichtenstein, launder nearly 120,000 bitcoins (BTC).
Morgan is also known for her rap videos under her stage name “Razzlekhan”. The self-titled “Wall Street Crocodile” garnered hundreds of thousands of views on her videos, which went viral after the couple’s arrest in 2022.
According to the US Department of Justice (DOJ), Morgan’s husband used advanced hacking techniques and tools to gain access to the Bitfinex network. After hacking the cryptocurrency exchange, Liechtenstein transferred 119,574 BTC to one of his cryptocurrency wallets through more than 2,000 transactions.
The value of the stolen money was estimated at around $71 million in 2016. However, its value has increased significantly over the years, now worth around $11 billion after Bitcoin rose to over $90,000 in the past seven days.
Although not involved in the hack, Morgan helped her husband launder the stolen bitcoin, using “several sophisticated laundering techniques” to hide the money.
According to prosecutors, Lichtenstein stated that Morgan did not find out about the hack until 2019, but enlisted her help to hide the money “without explaining exactly what he was doing.” The pair reportedly managed to launder 21% of the stolen money.
“Bitcoin Bonnie and Clyde” used fake identities to create online accounts, deposited the stolen bitcoin into several darknet markets and cryptocurrency exchanges to withdraw funds, converted bitcoin into other cryptocurrencies, and deposited part of the funds into cryptocurrency mixers.
The Bitfinex Hack saga ends with a light prison sentence
In August 2023, Morgan and Lichtenstein pleaded guilty to conspiracy to commit money laundering. On November 18, District Court Judge Colleen Kollar-Kotelly sentenced Morgan to 18 months in prison, four days after her husband was sentenced.
Prosecutors Argue That she was “certainly a willing participant and takes full responsibility for her actions.” However, they noted that Morgan was a “lower-level participant,” which resulted in her sentence being reduced.
Despite cooperating with authorities and appearing “genuinely remorseful and unlikely to reoffend,” the judge considered that Morgan should have faced prison to set an example and help discourage others from committing similar crimes.
Meanwhile, Liechtenstein received a five-year prison sentence after cooperating with authorities in other cryptocurrency hacks. During the hearing, the mastermind behind the Bitfinex hack reportedly expressed remorse for using his talents for criminal activities “instead of making a positive contribution to society.”
After news of her sentencing, Morgan Released Statement on X. In the video, she apologized to her followers for the disappearance and explained that she had spent the past three years “fighting the Fed’s case” and was “listening to her lawyers.”
Finally, she announced that she would share her story and thoughts now that the case is over. As reported by Bitcoinist, Amazon greenlighted a film titled “Razzlekhan” about the Bitfinex hack earlier this year and will collaborate with MGM Studios on the production.
Bitcoin is trading at $92,344 in the weekly chart. Source: BTCUSDT on TradingView
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