Bitfinex money launderer 'Razzlekhan' receives 18-month prison sentence for Bitcoin fraud
Bitfinex money launderer 'Razzlekhan' receives 18-month prison sentence for Bitcoin fraud
Heather Morgan, infamously known by her rapper persona "Razzlekhan," has been sentenced to 18 months in prison for laundering Bitcoin stolen during the 2016 Bitfinex hack. U.S. District Judge Colleen Kollar-Kotelly issued the sentence on Nov. 18 in Washington, D.C. Morgan had pleaded guilty in August 2023 to charges of conspiracy to commit money laundering and defraud the United States.
Morgan, alongside her husband, Ilya Lichtenstein, admitted to laundering funds linked to one of the largest cryptocurrency heists in history. The couple was arrested in 2022 after U.S. authorities traced millions of stolen Bitcoin back to their accounts. Prosecutors revealed that Lichtenstein had hacked Bitfinex in 2016, stealing 119,754 BTC, worth millions then but valued at approximately $10.8 billion at the time of publication, with Bitcoin trading at $89,765.
Lighter sentencing reflects cooperation with authorities
Lichtenstein, who confessed to the hack during court proceedings, received a comparatively lighter sentence of five years on Nov. 14. While sentencing guidelines allowed for up to 20 years, prosecutors acknowledged Lichtenstein's “substantial assistance” in ongoing investigations and noted his lack of prior criminal history.
The sentencing of both individuals underscores the enduring challenges in securing digital assets and the growing sophistication of law enforcement in tracking illicit cryptocurrency activities. The Bitfinex case has been pivotal in demonstrating how blockchain technology can aid authorities in unraveling complex financial crimes.
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