Plea Deal on the Cards for Bitfinex Bitcoin Heist Suspects

The narrative of the infamous Bitfinex cryptocurrency hack of 2016 is set to close another chapter. Heather Morgan, known popularly as “Razzlekhan,” and her spouse Ilya Lichtenstein, residents of New York who found themselves under arrest in early 2022, have reportedly decided to negotiate a plea deal with the U.S. legal system. This comes directly from an individual who claims to have insider knowledge about the ongoing legal proceedings.

Morgan and Lichtenstein were earlier held on accusations of laundering an estimated 25,000 BTC, coupled with the possession of an additional 94,000 BTC—looted during the 2016 Bitfinex exploit.

The U.S. law enforcement agencies successfully confiscated the 94,000 BTC when they apprehended the couple. The Department of Justice (DOJ) hinted that they suspected the duo in the crime of laundering these funds, going as far as suggesting—but not outrightly stating—that they might be the masterminds behind the original hack. Interestingly, most of the leftover 25,000 BTC had been progressively transferred over the past half-decade via a mix of wallets and shadowy online marketplaces.

Upon conviction, the U.S. Attorney has instructed the couple to surrender billions in cryptocurrencies, including bitcoin, ether, and stablecoins, as well as liquid cash from their personal bank accounts, as stated in a court document.

Morgan was fortunate enough to be granted bail in February 2022, while Lichtenstein wasn’t as lucky. The defense argued that Morgan was less implicated than her husband, with the only charge against her being the receipt of funds linked to the crime. Her ongoing health complications further bolstered her case for release.

This plea bargain signals the end of one of the most riveting legal dramas in cryptocurrency’s relatively young history, which has been punctuated with numerous scandals. The identity of the original Bitfinex hacker remains a riddle. Adding a dash of eccentricity to this saga are Morgan’s quirky music videos that have been seen as a form of comic interlude amid this serious affair.

As it stands, it’s uncertain how long the pair may spend in prison. In the previous year, both faced two conspiracy charges with a potential cumulative sentence of 25 years. A court record indicates they have been summoned to present themselves for an arraignment and plea hearing on August 3, in front of U.S. District Judge Colleen Kollar-Kotelly in Washington.