Bitfinex $10 Billion Hack: ‘Razzlekhan’ Sentenced To 18 Months For Money Laundering

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As a seasoned crypto investor with over a decade of experience under my belt, I can’t help but feel a mix of emotions reading about the Bitfinex hack saga and the sentencing of Heather Morgan, also known as “Razzlekhan.” On one hand, it’s heartening to see justice being served and those responsible for such a massive theft being brought to book. However, I can’t help but wonder if they were actually trying to teach her rapping skills instead of Bitcoin laundering in that rapper-Wall Street duo!

In a recent turn of events related to the Bitfinex hack case, Heather Morgan, also known as “Razzlekhan,” was given an 18-month prison term for washing the 120,000 Bitcoin that were stolen in 2016. This court decision came after her husband’s five-year sentence for laundering money and conspiring to steal.

Razzlekhan: From Rapper To ‘Bitcoin Bonnie’

On Monday, Heather Morgan, wife of the architect of the 2016 Bitfinex large-scale hack, was judicially sentenced in Washington by a federal judge. The sentence came as a result of her role in assisting her husband, Ilya Lichtenstein, in laundering approximately 120,000 Bitcoins (BTC).

Apart from being recognized by her stage name “Razzlekhan,” Morgan is also famous for her rap videos. Nicknamed the “Crocodile of Wall Street,” she gained significant popularity through these videos, accumulating hundreds of thousands of views. After the couple’s arrest in 2022, many of these videos went viral.

As reported by the U.S. Department of Justice (DOJ), Morgan’s spouse is alleged to have employed sophisticated hacking methods and tools to infiltrate Bitfinex’s digital network. Upon gaining access to the cryptocurrency exchange, Lichtenstein moved 119,574 Bitcoins into one of his cryptocurrency wallets through over 2,000 transactions.

In 2016, the stolen money was approximately $71 million. But over time, its worth skyrocketed and is now close to $11 billion, following a surge in Bitcoin’s value that exceeded $90,000 in the past week.

Even though Morgan didn’t participate in the initial hack, she aided her husband by cleaning the illegally obtained Bitcoins, employing “a variety of complex money-laundering methods” to conceal the funds.

As claimed by the prosecutors, Lichtenstein allegedly said that Morgan wasn’t aware of the hack until 2019 and asked for her assistance in concealing the misappropriated funds without providing a clear explanation of his actions. The couple supposedly were able to clean 21% of the stolen funds.

The duo, known as “Bitcoin’s Bonnie and Clyde,” employed false identities to establish multiple online accounts. They funneled their ill-gotten Bitcoins across various darknet markets and cryptocurrency exchanges for cash-out purposes, then converted these Bitcoins into other digital currencies. A portion of the funds were subsequently transferred into crypto mixing services.

Bitfinex Hack Saga Ends With Reduced Prison Sentence

In August 2023, Morgan and Lichtenstein admitted their guilt in a money laundering conspiracy case. On November 18, District Court Judge Colleen Kollar-Kotelly handed down a sentence of 18 months for Morgan, which was four days after her husband’s sentencing.

The prosecution maintained that Morgan was undeniably an active collaborator and is completely accountable for her conduct. Yet, they emphasized that as a lesser participant, her involvement led to her receiving a more lenient penalty.

Although Morgan seemed sincerely contrite and appeared to be unlikely to reoffend after cooperating with authorities, the Judge felt it was necessary for him to serve time in prison to act as a deterrent and discourage others from committing comparable crimes.

In the course of events, Lichtenstein was given a five-year sentence following his cooperation with authorities in relation to other crypto heists. At his trial, the alleged mastermind behind the Bitfinex hack reportedly expressed regret for utilizing his skills for criminal purposes rather than making a beneficial impact on society.

After hearing about her verdict, Morgan issued a statement regarding X through a video. In this video, she expressed apologies to her fans for being absent and disclosed that she had been engaged in a legal battle with the Federal government over the past three years, and was following the advice of her attorneys.

Eventually, she disclosed that she would reveal her tale and insights since the case has concluded. According to reports from Bitcoinist, Amazon approved a movie called “Razzlekhan” regarding the Bitfinex hack in the early part of this year, and they will team up with MGM Studios for the film’s production.

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2024-11-20 13:12