Prosecutors Recommend 18-Month Prison Term for Heather Morgan in Bitfinex Hack Case
Court documents indicate that Heather Morgan, also known as 'Razzlekhan', is facing sentencing for her involvement in laundering bitcoins from a hack.
Prosecutors have requested that Heather Morgan, also known as 'Razzlekhan', be sentenced to 18 months in prison for her role in laundering 120,000 bitcoins stolen in the 2016 Bitfinex hack.
In August 2023, Morgan pleaded guilty to charges of conspiracy both to launder money and defraud the United States, each carrying a potential maximum term of five years in custody.
Initially, it was thought that only Morgan and her husband, Ilya Lichtenstein, laundered the loot, which today is valued at around $7.5 billion. However, Lichtenstein later acknowledged being the original hacker and also accepted a plea to money laundering conspiracy, which can result in a 20-year sentence.
Court records reveal that Lichtenstein executed the hack independently in 2016, keeping Morgan uninformed until it was time to launder the cash in 2020, thus making her simply an accessory to the offense post-factum.
Prosecutors noted, “She was, in some respects, caught up in a serious criminal operation without her initial approval and felt a sense of obligation to support her husband.” This acknowledgment of her situation does not lessen the gravity of her actions, as she ultimately engaged in the conspiracy and utilized her skills to bolster her husband's illegal activities.
The prosecution has argued for a lighter sentence due to Morgan’s acceptance of responsibility, significant cooperation with law enforcement, and the minimal amount she actually spent from the laundered funds.
Nonetheless, they stressed the judge should also factor in the attempts by Morgan to obstruct justice, such as discarding evidence and misleading the authorities during their investigations.
In addition, they have requested the court order her to repay approximately 94,643 BTC and other cryptocurrencies seized by the government, amounting to over $6 billion.
Morgan's sentencing is scheduled for November 15 at 2:00 PM in Washington, D.C., following Lichtenstein's.