New York Couple Pleads Guilty to 2016 Bitfinex Hack

Heather Morgan and Ilya Lichtenstein, the couple who were arrested last year for the massive 2016 Bitfinex hack, have pleaded guilty to laundering $4.5 billion.

Morgan, who goes by the moniker “Razzlekhan,” and Lichtenstein, a former tech entrepreneur, pleaded guilty in a Washington federal court on Thursday.

Husband Pleads Guilty to Stealing 120,000 Bitcoin in Hack

In addition to laundering, Lichtenstein also pleaded guilty to stealing the funds. Prosecutors estimated that roughly 120,000 Bitcoin were stolen from Bitfinex in 2016, which the couple then laundered using exchange wallets, chain-hopping, and privacy coins.

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Detectives found folders on Liechtenstein’s computer with fake personas the couple used to set up accounts on exchanges. Additionally, authorities discovered a plastic bag labeled “burner phones” under the couple’s bed.

At the time of the couple’s arrest, the Department of Justice said the crypto seizure was their largest ever. At Bitcoin’s peak, the seized crypto was worth around $4.5 billion.

Razzlekhan’s Days Are Numbered

In court papers, prosecutors alleged Morgan’s involvement in various “contradictory” things.

She coached people on social engineering their way into any situation and released numerous rap videos under the pseudonym “Razzlekhan.” She also claimed to be a writer and an economist.

The couple initially entered a plea deal at the end of last month and now await a sentencing hearing. Morgan could serve 10 years in prison, while Lichtenstein faces a maximum of 20 years.

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