Feds Seek 18-Month Jail Term for Bitfinex Hacker Razzlekhan

Federal prosecutors are seeking 18 months imprisonment for Heather Morgan, a rapper who goes by the name Razzlekhan, for her involvement in the money laundering of 120,000 Bitcoin stolen from Bitfinex in 2016. 

In a recent court filing, they argued that Morgan deserves a lighter sentence due to her cooperation in the investigation and her status as a “lower-level participant” compared to her husband, Ilya Lichtenshtein.

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Morgan pleaded guilty to money laundering alongside fraud charges in August 2023 after assisting in the laundering of the Bitcoin, which is currently valued at approximately $7.2 billion. 

While she could receive a maximum of 10 years imprisonment, prosecutors think she should receive a shorter sentence because she played an important role in the plea bargain.

At first, Morgan did not know how Lichtenshtein got his hands on the stolen Bitcoin. However, in 2020, he admitted to hacking into the website and Morgan assisted him in transacting the money.

The prosecutors observed that the actions of Heather Morgan were not premeditated; she deliberately took part in criminal acquires with the aim of personal gain.

They emphasized that the couple concealed their traces really professionally, by using crypto mixers and darknet markets. Morgan even had the luxury of buying gold bars with cash stolen, which she invested in gold coins and buried.

Apart from the 18-month prison term, the prosecutors also seek Morgan to pay for the seized crypto-assets from the Bitfinex Hack Wallet, which are worth more than $6 billion. Her sentencing hearing is scheduled for November 15, after Lichtenshtein’s on November 14.

Prosecutors’ request for a lighter sentence for Morgan highlights the importance of cooperation in investigations. However, her involvement in laundering such a massive amount of Bitcoin cannot be overlooked.