Heather Morgan, who performs under the name “Razzlekhan,” has received an 18-month prison sentence for her role in laundering cryptocurrency that was stolen in the 2016 Bitfinex hack. Morgan and her husband, Ilya Lichtenstein, were taken into custody in 2022 following an investigation that linked them to the laundering of more than $10.8 billion in stolen Bitcoin.
Morgan entered a guilty plea to conspiracy charges in August 2023, acknowledging involvement in laundering nearly 120,000 Bitcoin through various techniques, such as coin mixers and darknet markets. Prosecutors recognized that her participation was not as prominent as Lichtenstein’s, who was the mastermind behind the hack, yet they emphasized her considerable contribution to the criminal activity.
The couple stole Bitcoin and tried to hide their illicit activities by buying gold coins. However, most of the stolen Bitcoin was recovered following their arrests. Having entered a guilty plea regarding theft and laundering charges, Lichtenstein received a five-year prison sentence in November 2024.
Morgan, previously known as a rapper and influencer, had authored articles on cybercrime tactics before her arrest, offering insights into the methods she utilized in her laundering operation.
Morgan’s case is one of history’s most significant cryptocurrency-related crimes, highlighting the increasing overlap between digital currency and illicit activities. The Bitfinex hack is a prominent illustration of law enforcement officers’ difficulties tracing and reclaiming stolen cryptocurrencies.