Heather Morgan Set for Sentencing in Major Bitfinex Hack Case

•  Morgan faces 18 months for laundering $6 billion in Bitcoin.
• Husband Ilya Lichtenstein admits to being the original hacker in this case.

Heather Morgan, known in the music world as “Razzlekhan,” is set to be sentenced on November 15 for her involvement in laundering 120,000 bitcoins stolen from Bitfinex during a 2016 hack. Prosecutors have requested an 18-month prison term for Morgan, who pleaded guilty in August 2023 to one count of conspiracy to commit money laundering and one count of conspiracy to defraud the United States. Each charge carries a maximum penalty of five years in prison.

Morgan’s husband, Ilya Lichtenstein, admitted to being the hacker responsible for the breach and has also pleaded guilty to money laundering charges, which could result in a sentence of up to 20 years. Although Morgan was not directly involved in the initial hack, prosecutors contend that she later assisted Lichtenstein in laundering the stolen funds, making her an accessory to the crime.

Moreover, prosecutors acknowledged Morgan’s early acceptance of responsibility and cooperation with law enforcement in their sentencing recommendation. They suggest that these factors warranted a more lenient sentence. They noted that she had spent little of the laundered funds and had been “thrust into the middle of a serious criminal scheme” without prior knowledge of her husband’s actions. 

However, they also highlighted her attempts to obstruct justice during the investigation, including the disposal of evidence. And efforts to conceal her actions when law enforcement executed a search warrant at their residence.

$6B Worth Of BTC Should Be Returned

In addition to prison time, prosecutors are seeking restitution from Morgan. They asks the court to order her to return approximately 94,643 BTC and other cryptocurrencies. It is valued at more than $6 billion, that were seized from the hack wallet. This request underscores the significant financial implications of the case for both the victims and the legal system.

As Morgan awaits her sentencing, the case continues to draw attention within the cryptocurrency community. It highlights the challenges of regulating digital assets and the legal consequences of financial crimes.

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