US Regulators Seek 18-Month Prison Term for Rapper "Razzlekhan" in Bitcoin Laundering Case
US regulators are calling for Heather Morgan, also known as the hacker and rapper "Razzlekhan," to serve an 18-month prison sentence for her involvement in the laundering of 120,000 Bitcoin that was stolen from the Cryptocurrency Exchange Bitfinex back in 2016.
Federal lawmakers have requested a more lenient sentence for Morgan due to her cooperation in the plea negotiation process with her husband, Ilya Lichtenstein, in July 2023.
The prosecution argues that Morgan played a "lower-level" role in the offense compared to Lichtenstein and only handled a small portion of the stolen funds.
Morgan's Guilty Plea
In August 2023, Morgan pleaded guilty to charges of money laundering and fraud related to her involvement in the Bitcoin laundering scheme, which is estimated to be worth $7.2 billion today.
If convicted, she could face a combined maximum sentence of 10 years in prison.
Seizure of Crypto Assets
In addition to the prison term, regulators are seeking a court order for Morgan to return the Crypto assets that were seized from the "Bitfinex Hack Wallet." This includes approximately 95,000 BTC, 117,400 Bitcoin Cash (BCH), 117,400 Bitcoin Satoshi Vision (BSV), and 118,100 Bitcoin Gold (BTG), which are valued at over $6 billion.
The regulators have emphasized that the return of these assets is necessary as compensation to Bitfinex.
Morgan's sentencing hearing is scheduled for November 15, following Lichtenstein's sentencing on November 14.
Admission of Responsibility
Initially, both Morgan and Lichtenstein were believed to have played a role in the laundering of the stolen funds from the 2016 Bitfinex hack. However, Lichtenstein later confessed to being solely responsible for the hack and pleaded guilty to charges of money laundering.
As a result, Lichtenstein is facing a maximum sentence of 20 years in prison.
Prosecutors stated that Morgan was initially unaware of the details of the hack but became aware of Lichtenstein's involvement by early 2020. They alleged that she assisted him in laundering the stolen funds and conspired to conceal his actions.
Conclusion
Heather Morgan, also known as "Razzlekhan," faces potential prison time and the confiscation of significant amounts of Crypto assets in connection with the laundering of Bitcoin stolen from Bitfinex.
The sentencing hearings for Morgan and Lichtenstein will determine the extent of their liabilities in this high-profile case.
Stay tuned for further updates on this ongoing Legal matter involving one of the largest Cryptocurrency hacks in history.
