Heather Morgan, known as rapper "Razzlekhan," was sentenced to 18 months in prison on November 19, 2024, for laundering cryptocurrency linked to the 2016 Bitfinex hack, which involved over $10.8 billion in stolen Bitcoin.
Morgan, alongside her husband Ilya Lichtenstein, was arrested in 2022 after authorities traced the laundering of nearly 120,000 Bitcoin through various methods, including coin mixers and darknet markets. She pleaded guilty to conspiracy in August 2023, acknowledging her significant yet lesser role compared to Lichtenstein, who orchestrated the hack.
The couple attempted to hide their activities by purchasing gold coins, though most of the stolen Bitcoin was recovered post-arrest. Lichtenstein was sentenced to five years in prison in November 2024 after also pleading guilty to theft and laundering charges.
This case highlights the intersection of digital currency and criminal activity, emphasizing the challenges law enforcement faces in tracking and recovering stolen cryptocurrencies.