Feds seek 18 months for Wall Street rapper in Bitfinex-hack related $4.5b case

Wall Street rapper Heather Morgan, known as “Razzlekhan,” could face up to 18 months in prison for helping her husband launder millions from the 2016 Bitfinex hack.

U.S. prosecutors are seeking an 18-month prison sentence for Wall Street rapper Heather Morgan, also known as “Razzlekhan,” for her role in laundering stolen Bitcoin (BTC) in the 2016 Bitfinex hack.

Morgan, who pleaded guilty to money laundering conspiracy last year, provided “substantial assistance” to the government, according to a filing filed Wednesday (Oct. 9) in Washington federal court.

Morgan’s husband, Ilya Lichtenstein, organized the theft of approximately 120,000 Bitcoins (about $4.5 billion at the time) from the crypto exchange, and prosecutors alleged that he helped Morgan launder the stolen funds. Although Morgan was not involved in the hack, he was involved in hiding the proceeds, including purchasing non-fungible tokens, gold, and gift cards.

“In some respects she had been thrust into the middle of a serious criminal plot without her consent, and she no doubt felt compelled to support it out of loyalty to her husband and desire to preserve their lives together.”

US prosecutors

Prosecutors also described the couple’s money laundering methods as “sophisticated” and said the pair used “sophisticated transactions, non-compliant virtual currency exchanges, darknet markets, and mixers and tumblers including Bitcoin Fog, Helix, and ChipMixer” to cover the trail.

Despite the serious charges, Morgan could receive a reduced sentence for his cooperation, but he also faces up to five years in prison for conspiracy to defraud the United States.

Morgan’s notoriety stems from his social media persona and rap performances under the pseudonym “Razzlekhan”. While Lichtenstein remained in jail, Morgan was given house arrest on $3 million bail and permission to work as a web3 consultant.