Bitfinex hack launderer ‘Razzlekhan’ wants time served as sentencing looms

As an analyst with years of experience in the criminal justice system and digital currency world, I have to say that Heather Morgan’s case is both fascinating and complex. Her life story seems like the script for a Hollywood movie – a rapper turned crypto queen, entangled in one of the biggest Bitcoin theft cases.

Heather Morgan, popularly known by her stage name “Razzlekhan,” is seeking leniency in sentencing, hoping to avoid additional jail time, as she prepares for sentencing related to her involvement in laundering the Bitcoin that her husband illegally obtained from the cryptocurrency exchange, Bitfinex.

In their October 31st submission to the Federal Court in Washington D.C., Ms. Morgan’s legal team kindly petitioned for her to be granted a second opportunity by sentencing her to the time she has already served.

During her one-week detention prior to trial, she faced challenging circumstances due to needing recovery from surgery and contracting COVID-19. After her release in mid-February 2022, she has strictly adhered to the stringent conditions set for her pretrial freedom.

Morgan, having admitted guilt in a plea agreement reached in August 2023, now confronts a potential aggregate prison term of ten years. This is due to her involvement in laundering approximately 120,000 Bitcoin (BTC), which currently translates to roughly $8.2 billion, that were fraudulently obtained from Bitfinex by her spouse, Ilya Lichtenstein.

In the previous month, U.S. prosecutors requested a more lenient 18-month imprisonment for Morgan due to her significant cooperation with them. Furthermore, they emphasized her role as a “lesser player” in contrast to Lichtenstein, stating that she had contributed minimally compared to their joint theft, and only a minor portion of the total stolen amount was attributed to her actions.

Prosecutors stated that she found herself unwillingly involved in a major criminal operation, driven primarily by a strong sense of loyalty towards her spouse and the wish to safeguard their shared life.

In simpler terms, Morgan’s legal team stated that she was not premeditating or actively seeking the crime in this particular case, as she discovered about her husband’s hacking three years after it occurred. However, they also mentioned that she accepts responsibility for her actions, which were indeed serious, and expresses profound regret.

This year, Morgan has been noticed attending cryptocurrency-focused events, and her legal representatives have stated that she’s been employed since her release. They emphasized that she “has evolved” to differentiate herself from her rapper persona, Razzlekhan, which they described as a “stereotype,” distinctly separate from who she truly is.

Back in August 2023, I found myself entangled in a shocking confession. My spouse, Lichtenstein, admitted to an audacious crime: the theft of approximately 120,000 Bitcoins from Bitfinex. To complicate matters and evade detection, he devised a cunning plan involving me. He channeled around 25,000 BTC through various crypto mixers and privacy services in an attempt to obscure his footprints.

Last month, U.S. prosecutors recommended to the court a reduced sentence of five years for Lichtenstein, lower than the initial 20-year charge, because his significant cooperation has significantly contributed to multiple ongoing investigations.

Nevertheless, it was argued that Lichtenstein should receive a more extended term of imprisonment compared to Morgan because he meticulously planned the scheme over several months and tested it by pilfering $200,000 from a different trading platform.

On November 14, Lichtenstein is set to receive his sentence, and Morgan’s sentencing has been arranged for the following day on November 15.

2024-11-04 05:58

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