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Scams, Hacks & Breaches
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July 22, 2023

Couple Who Allegedly Laundered Bitcoin (BTC) From Massive 2016 Bitfinex Hack Appear To Reach Plea Deal

By Conor Devitt

The notorious crypto couple accused of attempting to launder billions of dollars worth of Bitcoin (BTC) from the massive 2016 Bitfinex hack appears to have reached a plea agreement.

Court records indicate Ilya Lichtenstein and his wife Heather Morgan reached a plea deal with prosecutors this week, though the agreement’s details are not yet public at time of writing.

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According to a federal court docket entry, the duo’s case is closed, suggesting that they have already reached an agreement with the prosecutors.

The husband and wife have a plea hearing scheduled for August 3rd, according to CNBC.

The couple allegedly attempted to launder Bitcoin that was stolen from Bitfinex after a hacker breached the exchange’s systems and then sent the stolen crypto to a wallet under Lichtenstein’s control.

After allegedly getting hold of the stolen Bitcoin, the feds say that Lichtenstein and Morgan used a series of complex strategies to try and obfuscate their digital paper trail, including sending the crypto to darknet markets, utilizing fake identities and using US-based business accounts to legitimize their banking activity.

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In February 2022, the U.S. Department of Justice seized 119,754 BTC worth a staggering $3.6 billion at the time from Lichtenstein and Morgan.

Morgan is a former Forbes columnist and chief executive of a copywriting firm. She’s also a YouTube rapper known as “Razzlekhan” and she also goes by the nicknames “the Versace Bedouin” and “the Crocodile of Wall Street.”

A television limited series about the couple titled “Razzlekhan: The Infamous Crocodile of Wall Street” is reportedly in development at Hulu.

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