Heather Morgan, better known as “Razzlekhan” in her rapper persona, has been sentenced to 18 months in prison for her role in laundering Bitcoin stolen during the 2016 Bitfinex hack.
The sentencing, delivered by Judge Colleen Kollar-Kotelly in Washington, DC, marks a significant moment in one of the largest cryptocurrency heists to date.
Morgan and her husband, Ilya Lichtenstein, were arrested in 2022 after authorities linked them to the laundering of 119,754 stolen Bitcoin, valued at over $10 billion today.
In August 2023, Morgan admitted to conspiracy charges, including laundering funds and defrauding the United States.
While initially suspected only of laundering the stolen funds, Lichtenstein later confessed to being the hacker behind the 2016 breach of Bitfinex.
Despite the severity of the crime, his five-year prison sentence—delivered on November 14—was significantly reduced due to his cooperation in other investigations and his clean criminal record.
Morgan’s sentencing, however, highlights her direct involvement in laundering the stolen assets, leveraging a mix of fake identities, encrypted accounts, and creative schemes to conceal the funds.
Her rapper alter ego, Razzlekhan, added a bizarre twist to the case, with some of her music and social media content mocking traditional financial systems.
The Bitfinex hack was a watershed moment in cryptocurrency history.
At the time of the theft, the stolen Bitcoin was worth millions, but its current valuation exceeds $10 billion. The hack resulted in one of the largest cryptocurrency seizures ever conducted by the U.S. Department of Justice.
This case stands apart from other crypto-related prosecutions. While many major crypto crimes fall under the Southern District of New York, such as the high-profile FTX trial, this case was pursued in Washington, DC.
The sentencing also comes as authorities signal potential changes in their approach to tackling crypto crimes, possibly scaling back enforcement amid evolving regulations and market dynamics.
