Heather “Razzlekhan” Morgan Sentenced for Role in 2016 Bitfinex Hack

Known as “Razzlekhan” from her rapping days, Heather Morgan was sentenced to 18 months in prison for her role in the laundering of money from the Bitfinex hack in 2016. Only a week earlier, her husband, Ilya “Dutch” Lichtenstein, who planned the hack, had received a five-year term. Authorities estimate that the pair laundered almost 20% of the nearly 120,000 bitcoins that were taken in the notorious hack.

A Complex Conspiracy Unfolds

Morgan admitted guilt to charges of money laundering conspiracy and conspiracy to defraud the United States. Prosecutors revealed that she played a significant role in concealing the stolen funds. Techniques included depositing funds into darknet markets, converting assets through “chain hopping,” utilizing cryptocurrency mixing services, and even burying gold coins acquired from the stolen Bitcoin.

“You were true partners in this laundering scheme,” Judge Colleen Kollar-Kotelly remarked during the hearing, emphasizing Morgan’s deliberate actions. The judge stated that Morgan’s involvement required “extensive planning” and stressed that the sentence serves as a deterrent to rising criminality in the crypto sector.

Morgan’s defense claimed she wasn’t aware of the theft until after the fact, positioning her as a remorseful and minor participant. Her lawyer highlighted the personal toll, citing her “completely and utterly” destroyed reputation and asking for leniency.

Morgan expressed deep regret during her sentencing. “I am extremely sorry and deeply regret the choices I made,” she tearfully stated. Her family and friends, some traveling from Hong Kong and Dubai, supported her in court, emphasizing her remorse and limited role in the crime.

Despite the sentence, Morgan hinted at a return to her public persona. Hours after the hearing, she posted a video on X, expressing plans to share her side of the story. She signed off with her infamous “Razzle Dazzle!” catchphrase, reigniting the controversial image that brought her widespread attention.

Morgan has until at least January to report to prison, with the exact date yet to be confirmed.