Bitfinex money launderer ‘Razzlekhan’ sentenced to 18 months in prison

One of the two individuals responsible for laundering stolen Bitcoin connected to the 2016 hack of crypto exchange Bitfinex has been sentenced to 18 months in prison.

Washington, DC, District Court Judge Colleen Kollar-Kotelly sentenced Heather Morgan — also known by her rapper alter ego “Razzlekhan” — to 18 months in prison in a Nov. 18 hearing. Morgan pleaded guilty to conspiracy to commit money laundering and defraud the United States in August 2023.

Morgan and her husband, Ilya Lichtenstein, admitted to laundering millions of dollars worth of Bitcoin (BTC) stolen from Bitfinex before their 2022 arrests. US authorities initially suspected the couple had only been responsible for laundering the stolen funds, but Lichtenstein later admitted in court to hacking the exchange.

Judge Kollar-Kotelly sentenced Lichtenstein to five years in prison on Nov. 14 — far less than the 20 years allowed by sentencing guidelines. Prosecutors cited the hacker’s “substantial assistance” in other investigations and the fact he had no prior criminal history. 

In 2016, Lichtenstein stole 119,754 BTC from Bitfinex. The funds were worth millions at the time of the hack but were valued at roughly $10.8 billion at the time of publication, with the price of Bitcoin at $89,765.

This is a developing story, and further information will be added as it becomes available.